FSLR Butterfly Strategy
FSLR (First Solar, Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.
First Solar, Inc. provides photovoltaic (PV) solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. The company designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.
FSLR (First Solar, Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $25.21B, a trailing P/E of 15.12, a beta of 1.56 versus the broader market, a 52-week range of 135.5-285.99, average daily share volume of 2.3M, a public-listing history dating back to 2006, approximately 8K full-time employees. These structural characteristics shape how FSLR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.56 indicates FSLR 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 FSLR?
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 FSLR snapshot
As of May 15, 2026, spot at $236.03, ATM IV 55.41%, IV rank 38.18%, expected move 15.89%. The butterfly on FSLR 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 28-day expiry.
Why this butterfly structure on FSLR specifically: FSLR IV at 55.41% 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 15.89% (roughly $37.50 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FSLR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FSLR should anchor to the underlying notional of $236.03 per share and to the trader's directional view on FSLR stock.
FSLR butterfly setup
The FSLR 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 FSLR near $236.03, the first option leg uses a $225.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FSLR chain at a 28-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 FSLR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $225.00 | $21.08 |
| Sell 2 | Call | $235.00 | $15.45 |
| Buy 1 | Call | $250.00 | $9.08 |
FSLR butterfly risk and reward
- Net Premium / Debit
- +$75.00
- Max Profit (per contract)
- $1,059.89
- Max Loss (per contract)
- -$425.00
- Breakeven(s)
- $245.75
- Risk / Reward Ratio
- 2.494
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.
FSLR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FSLR. 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% | +$75.00 |
| $52.20 | -77.9% | +$75.00 |
| $104.38 | -55.8% | +$75.00 |
| $156.57 | -33.7% | +$75.00 |
| $208.76 | -11.6% | +$75.00 |
| $260.94 | +10.6% | -$425.00 |
| $313.13 | +32.7% | -$425.00 |
| $365.32 | +54.8% | -$425.00 |
| $417.50 | +76.9% | -$425.00 |
| $469.69 | +99.0% | -$425.00 |
When traders use butterfly on FSLR
Butterflies on FSLR are pinning bets - traders use them when they expect FSLR 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.
FSLR thesis for this butterfly
The market-implied 1-standard-deviation range for FSLR extends from approximately $198.53 on the downside to $273.53 on the upside. A FSLR long call butterfly is a pinning play: it pays maximum at the middle strike if FSLR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FSLR IV rank near 38.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FSLR should anchor more to the directional view and the expected-move geometry. As a Energy name, FSLR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FSLR-specific events.
FSLR 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. FSLR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FSLR alongside the broader basket even when FSLR-specific fundamentals are unchanged. Always rebuild the position from current FSLR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FSLR?
- A butterfly on FSLR is the butterfly strategy applied to FSLR (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 FSLR stock trading near $236.03, the strikes shown on this page are snapped to the nearest listed FSLR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FSLR 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 FSLR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.41%), the computed maximum profit is $1,059.89 per contract and the computed maximum loss is -$425.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FSLR butterfly?
- The breakeven for the FSLR butterfly priced on this page is roughly $245.75 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 FSLR market-implied 1-standard-deviation expected move is approximately 15.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FSLR?
- Butterflies on FSLR are pinning bets - traders use them when they expect FSLR 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 FSLR implied volatility affect this butterfly?
- FSLR ATM IV is at 55.41% with IV rank near 38.18%, 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.