How are FND butterfly max profit and max loss calculated?

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the FND butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.50%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FND butterfly?

The breakeven for the FND butterfly priced on this page is roughly $43.65 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current FND market-implied 1-standard-deviation expected move is approximately 17.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FND implied volatility affect this butterfly?

FND ATM IV is at 60.50% with IV rank near 59.44%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

FND Butterfly Strategy

FND (Floor & Decor Holdings, Inc.), in the Consumer Cyclical sector, (Home Improvement industry), listed on NYSE.

Floor & Decor Holdings, Inc. operates as a multi-channel specialty retailer and commercial flooring distributor of hard surface flooring and related accessories. The company's stores offer tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative and installation accessories. It serves professional installers, commercial businesses, and do it yourself customers. As of May 5, 2022, the company operated 166 warehouse-format stores and five design studios in 34 states. It also sells products through its Website, FloorandDecor.com. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017.

FND (Floor & Decor Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Home Improvement, with a market capitalization of approximately $4.93B, a trailing P/E of 24.64, a beta of 1.63 versus the broader market, a 52-week range of 44.28-92.405, average daily share volume of 2.9M, a public-listing history dating back to 2017, approximately 10K full-time employees. These structural characteristics shape how FND stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.63 indicates FND has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on FND?

A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.

Current FND snapshot

As of May 15, 2026, spot at $43.45, ATM IV 60.50%, IV rank 59.44%, expected move 17.34%. The butterfly on FND below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.

Why this butterfly structure on FND specifically: FND IV at 60.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 17.34% (roughly $7.54 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FND expiries trade a higher absolute premium for lower per-day decay. Position sizing on FND should anchor to the underlying notional of $43.45 per share and to the trader's directional view on FND stock.

FND butterfly setup

The FND butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FND near $43.45, the first option leg uses a $42.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FND chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 FND shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$42.50	$3.80
Sell 2	Call	$42.50	$3.80
Buy 1	Call	$45.00	$2.65

FND butterfly risk and reward

Net Premium / Debit: +$115.00
Max Profit (per contract): $115.00
Max Loss (per contract): -$135.00
Breakeven(s): $43.65
Risk / Reward Ratio: 0.852

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.

FND butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FND. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$115.00
$9.62	-77.9%	+$115.00
$19.22	-55.8%	+$115.00
$28.83	-33.7%	+$115.00
$38.43	-11.5%	+$115.00
$48.04	+10.6%	-$135.00
$57.65	+32.7%	-$135.00
$67.25	+54.8%	-$135.00
$76.86	+76.9%	-$135.00
$86.46	+99.0%	-$135.00

When traders use butterfly on FND

Butterflies on FND are pinning bets - traders use them when they expect FND to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.

FND thesis for this butterfly

The market-implied 1-standard-deviation range for FND extends from approximately $35.91 on the downside to $50.99 on the upside. A FND long call butterfly is a pinning play: it pays maximum at the middle strike if FND settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FND IV rank near 59.44% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FND should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, FND options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FND-specific events.

FND butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. FND positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FND alongside the broader basket even when FND-specific fundamentals are unchanged. Always rebuild the position from current FND chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on FND?: A butterfly on FND is the butterfly strategy applied to FND (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With FND stock trading near $43.45, the strikes shown on this page are snapped to the nearest listed FND chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FND butterfly max profit and max loss calculated?: Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the FND butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.50%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FND butterfly?: The breakeven for the FND butterfly priced on this page is roughly $43.65 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current FND market-implied 1-standard-deviation expected move is approximately 17.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FND?: Butterflies on FND are pinning bets - traders use them when they expect FND to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
How does current FND implied volatility affect this butterfly?: FND ATM IV is at 60.50% with IV rank near 59.44%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.