How are GVA 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 GVA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.90%), the computed maximum profit is $508.34 per contract and the computed maximum loss is -$460.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GVA butterfly?

The breakeven for the GVA butterfly priced on this page is roughly $154.60 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 GVA market-implied 1-standard-deviation expected move is approximately 8.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GVA implied volatility affect this butterfly?

GVA ATM IV is at 28.90% with IV rank near 32.77%, 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.

GVA Butterfly Strategy

GVA (Granite Construction Incorporated), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.

Granite Construction Incorporated is a leading U.S. company that functions as both an infrastructure contractor and a producer of essential construction materials. Its activities are primarily divided into two key segments: Construction and Materials. The Construction division is responsible for developing and restoring public infrastructure, encompassing roadways, bridges, rail systems, airports, marine facilities, dams, reservoirs, and aqueducts, alongside general site development. This segment also specializes in water infrastructure projects for a diverse clientele, including municipal bodies, commercial water suppliers, industrial facilities, and energy companies. Furthermore, it undertakes complex ventures such as mining operations, public safety installations, tunnel construction, and both solar and conventional power projects. The Materials segment focuses on manufacturing aggregates and asphalt, supplying these critical components for both the company's internal construction needs and for external sale to third parties.

GVA (Granite Construction Incorporated) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $7.02B, a trailing P/E of 37.75, a beta of 1.33 versus the broader market, a 52-week range of 89.8-162.08, average daily share volume of 728K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how GVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.33 indicates GVA 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 37.75 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. GVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on GVA?

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 GVA snapshot

As of June 29, 2026, spot at $158.88, ATM IV 28.90%, IV rank 32.77%, expected move 8.29%. The butterfly on GVA 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 18-day expiry.

Why this butterfly structure on GVA specifically: GVA IV at 28.90% 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 8.29% (roughly $13.16 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on GVA should anchor to the underlying notional of $158.88 per share and to the trader's directional view on GVA stock.

GVA butterfly setup

The GVA 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 GVA near $158.88, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GVA chain at a 18-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 GVA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$150.00	$10.15
Sell 2	Call	$160.00	$3.70
Buy 1	Call	$165.00	$1.85

GVA butterfly risk and reward

Net Premium / Debit: -$460.00
Max Profit (per contract): $508.34
Max Loss (per contract): -$460.00
Breakeven(s): $154.60
Risk / Reward Ratio: 1.105

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.

GVA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GVA. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$460.00
$35.14	-77.9%	-$460.00
$70.27	-55.8%	-$460.00
$105.39	-33.7%	-$460.00
$140.52	-11.6%	-$460.00
$175.65	+10.6%	+$40.00
$210.78	+32.7%	+$40.00
$245.91	+54.8%	+$40.00
$281.04	+76.9%	+$40.00
$316.16	+99.0%	+$40.00

When traders use butterfly on GVA

Butterflies on GVA are pinning bets - traders use them when they expect GVA 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.

GVA thesis for this butterfly

The market-implied 1-standard-deviation range for GVA extends from approximately $145.72 on the downside to $172.04 on the upside. A GVA long call butterfly is a pinning play: it pays maximum at the middle strike if GVA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GVA IV rank near 32.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GVA should anchor more to the directional view and the expected-move geometry. As a Industrials name, GVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GVA-specific events.

GVA 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. GVA positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GVA alongside the broader basket even when GVA-specific fundamentals are unchanged. Always rebuild the position from current GVA chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on GVA?: A butterfly on GVA is the butterfly strategy applied to GVA (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 GVA stock trading near $158.88, the strikes shown on this page are snapped to the nearest listed GVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GVA 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 GVA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.90%), the computed maximum profit is $508.34 per contract and the computed maximum loss is -$460.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GVA butterfly?: The breakeven for the GVA butterfly priced on this page is roughly $154.60 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 GVA market-implied 1-standard-deviation expected move is approximately 8.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GVA?: Butterflies on GVA are pinning bets - traders use them when they expect GVA 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 GVA implied volatility affect this butterfly?: GVA ATM IV is at 28.90% with IV rank near 32.77%, 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.