FOXF Butterfly Strategy
FOXF (Fox Factory Holding Corp.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Fox Factory Holding Corp. designs, engineers, manufactures, and markets ride dynamics products worldwide. The company offers mid-end and high-end front fork and rear suspension products for mountain bikes, road bikes, and e-bikes; and powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks. It also provides mountain and road bike wheels, and other performance cycling components, including cranks, chain rings, pedals, bars, stems, and seat posts, as well as sells aftermarket products to dealers and distributors. The company offers powered vehicles under the FOX, BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Tuscany, Outside Van, and SCA brands; and mountain bikes and road bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is headquartered in Duluth, Georgia.
FOXF (Fox Factory Holding Corp.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $681.5M, a beta of 1.37 versus the broader market, a 52-week range of 13.08-31.18, average daily share volume of 667K, a public-listing history dating back to 2013, approximately 4K full-time employees. These structural characteristics shape how FOXF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.37 indicates FOXF 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 FOXF?
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 FOXF snapshot
As of May 15, 2026, spot at $16.15, ATM IV 60.10%, IV rank 7.18%, expected move 17.23%. The butterfly on FOXF 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 FOXF specifically: FOXF IV at 60.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a FOXF butterfly, with a market-implied 1-standard-deviation move of approximately 17.23% (roughly $2.78 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 FOXF expiries trade a higher absolute premium for lower per-day decay. Position sizing on FOXF should anchor to the underlying notional of $16.15 per share and to the trader's directional view on FOXF stock.
FOXF butterfly setup
The FOXF 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 FOXF near $16.15, the first option leg uses a $15.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FOXF 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 FOXF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.34 | N/A |
| Sell 2 | Call | $16.15 | N/A |
| Buy 1 | Call | $16.96 | N/A |
FOXF butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FOXF butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FOXF. 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.
When traders use butterfly on FOXF
Butterflies on FOXF are pinning bets - traders use them when they expect FOXF 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.
FOXF thesis for this butterfly
The market-implied 1-standard-deviation range for FOXF extends from approximately $13.37 on the downside to $18.93 on the upside. A FOXF long call butterfly is a pinning play: it pays maximum at the middle strike if FOXF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FOXF IV rank near 7.18% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on FOXF at 60.10%. As a Consumer Cyclical name, FOXF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FOXF-specific events.
FOXF 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. FOXF positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FOXF alongside the broader basket even when FOXF-specific fundamentals are unchanged. Always rebuild the position from current FOXF chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FOXF?
- A butterfly on FOXF is the butterfly strategy applied to FOXF (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 FOXF stock trading near $16.15, the strikes shown on this page are snapped to the nearest listed FOXF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FOXF 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 FOXF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FOXF butterfly?
- The breakeven for the FOXF butterfly priced on this page is no defined breakeven on the modeled curve 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 FOXF market-implied 1-standard-deviation expected move is approximately 17.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FOXF?
- Butterflies on FOXF are pinning bets - traders use them when they expect FOXF 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 FOXF implied volatility affect this butterfly?
- FOXF ATM IV is at 60.10% with IV rank near 7.18%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.