How are HBAN 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 HBAN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $52.50 per contract and the computed maximum loss is -$47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HBAN butterfly?

The breakeven for the HBAN butterfly priced on this page is roughly $15.53 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 HBAN market-implied 1-standard-deviation expected move is approximately 8.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HBAN implied volatility affect this butterfly?

HBAN ATM IV is at 30.10% with IV rank near 15.77%, 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.

HBAN Butterfly Strategy

HBAN (Huntington Bancshares Incorporated), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company operates through four segments: Consumer and Business Banking; Commercial Banking; Vehicle Finance; and Regional Banking and The Huntington Private Client Group (RBHPCG). The Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, credit cards, and consumer and small business loans, as well as investment products. This segment also provides mortgages, insurance, interest rate risk protection, foreign exchange, automated teller machine, and treasury management services, as well as online, mobile, and telephone banking services. It serves consumer and small business customers. The Commercial Banking segment offers regional commercial banking solutions for middle market businesses, government and public sector entities, and commercial real estate developers/REITs; and specialty banking solutions for healthcare, technology and telecommunications, franchise finance, sponsor finance, and global services industries.

HBAN (Huntington Bancshares Incorporated) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $24.29B, a trailing P/E of 13.00, a beta of 0.98 versus the broader market, a 52-week range of 14.89-19.46, average daily share volume of 25.1M, a public-listing history dating back to 1980, approximately 20K full-time employees. These structural characteristics shape how HBAN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.98 places HBAN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HBAN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on HBAN?

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 HBAN snapshot

As of May 15, 2026, spot at $15.43, ATM IV 30.10%, IV rank 15.77%, expected move 8.63%. The butterfly on HBAN 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 HBAN specifically: HBAN IV at 30.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a HBAN butterfly, with a market-implied 1-standard-deviation move of approximately 8.63% (roughly $1.33 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 HBAN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HBAN should anchor to the underlying notional of $15.43 per share and to the trader's directional view on HBAN stock.

HBAN butterfly setup

The HBAN 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 HBAN near $15.43, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HBAN 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 HBAN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.00	$0.80
Sell 2	Call	$15.00	$0.80
Buy 1	Call	$16.00	$0.28

HBAN butterfly risk and reward

Net Premium / Debit: +$52.50
Max Profit (per contract): $52.50
Max Loss (per contract): -$47.50
Breakeven(s): $15.53
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.

HBAN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HBAN. 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	-99.9%	+$52.50
$3.42	-77.8%	+$52.50
$6.83	-55.7%	+$52.50
$10.24	-33.6%	+$52.50
$13.65	-11.5%	+$52.50
$17.06	+10.6%	-$47.50
$20.47	+32.7%	-$47.50
$23.88	+54.8%	-$47.50
$27.29	+76.9%	-$47.50
$30.70	+99.0%	-$47.50

When traders use butterfly on HBAN

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

HBAN thesis for this butterfly

The market-implied 1-standard-deviation range for HBAN extends from approximately $14.10 on the downside to $16.76 on the upside. A HBAN long call butterfly is a pinning play: it pays maximum at the middle strike if HBAN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HBAN IV rank near 15.77% 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 HBAN at 30.10%. As a Financial Services name, HBAN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HBAN-specific events.

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

Frequently asked questions

What is a butterfly on HBAN?: A butterfly on HBAN is the butterfly strategy applied to HBAN (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 HBAN stock trading near $15.43, the strikes shown on this page are snapped to the nearest listed HBAN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HBAN 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 HBAN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $52.50 per contract and the computed maximum loss is -$47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HBAN butterfly?: The breakeven for the HBAN butterfly priced on this page is roughly $15.53 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 HBAN market-implied 1-standard-deviation expected move is approximately 8.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HBAN?: Butterflies on HBAN are pinning bets - traders use them when they expect HBAN 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 HBAN implied volatility affect this butterfly?: HBAN ATM IV is at 30.10% with IV rank near 15.77%, 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.