FPH Butterfly Strategy
FPH (Five Point Holdings, LLC), in the Real Estate sector, (Real Estate - Development industry), listed on NYSE.
Five Point Holdings, LLC, primarily operating through its subsidiary, Five Point Operating Company, LP, specializes in the ownership and development of large-scale, multi-purpose communities across Orange, Los Angeles, and San Francisco Counties in California. The company segments its operations into four distinct areas: Valencia, San Francisco, Great Park, and Commercial. Its business activities include selling land parcels for both residential and commercial construction to homebuilders, commercial developers, and other buyers. Furthermore, it manages and holds various properties, such as commercial office spaces and a medical campus, while also offering development and property management expertise. Founded in 2009 as Newhall Holding Company, LLC, the firm rebranded to Five Point Holdings, LLC in May 2016. Its corporate headquarters are situated in Irvine, California.
FPH (Five Point Holdings, LLC) trades in the Real Estate sector, specifically Real Estate - Development, with a market capitalization of approximately $368.2M, a trailing P/E of 7.02, a beta of 1.34 versus the broader market, a 52-week range of 4.6-6.64, average daily share volume of 173K, a public-listing history dating back to 2017, approximately 90 full-time employees. These structural characteristics shape how FPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.34 indicates FPH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.02 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on FPH?
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.
FPH snapshot
As of August 14, 2026, spot at $5.16, ATM IV 60.70%, IV rank 7.93%, expected move 17.40%. The butterfly on FPH below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on FPH specifically: FPH IV at 60.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a FPH butterfly, with a market-implied 1-standard-deviation move of approximately 17.40% (roughly $0.90 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on FPH should anchor to the underlying notional of $5.16 per share and to the trader's directional view on FPH stock.
FPH butterfly setup
The FPH 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 FPH at $5.16 on that close, the first option leg uses a $4.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FPH chain at a 35-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 FPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.90 | N/A |
| Sell 2 | Call | $5.16 | N/A |
| Buy 1 | Call | $5.42 | N/A |
FPH 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.
FPH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FPH. 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 FPH
Butterflies on FPH are pinning bets - traders use them when they expect FPH 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.
FPH thesis for this butterfly
The market-implied 1-standard-deviation range for FPH extends from approximately $4.26 on the downside to $6.06 on the upside. A FPH long call butterfly is a pinning play: it pays maximum at the middle strike if FPH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FPH IV rank near 7.93% 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 FPH at 60.70%. As a Real Estate name, FPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FPH-specific events.
FPH 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. FPH positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FPH alongside the broader basket even when FPH-specific fundamentals are unchanged. Always rebuild the position from current FPH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FPH?
- A butterfly on FPH is the butterfly strategy applied to FPH (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 FPH stock at $5.16 on the most recent close, the strikes shown on this page are snapped to the nearest listed FPH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FPH 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 FPH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.70%), 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 FPH butterfly?
- The breakeven for the FPH butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FPH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FPH?
- Butterflies on FPH are pinning bets - traders use them when they expect FPH 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 FPH implied volatility affect this butterfly?
- FPH ATM IV is at 60.70% with IV rank near 7.93%, 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.