HFFG Butterfly Strategy
HFFG (HF Foods Group Inc.), in the Consumer Defensive sector, (Food Distribution industry), listed on NASDAQ.
HF Foods Group Inc., through its subsidiaries, operates as a food service distributor to Asian restaurants located in the Southeastern, Pacific, and Mountain West regions of the United States. It distributes Asian specialty food items, meat and poultry products, seafood, fresh produce, packaging and other items, and commodities. The company also provides design and printing services, as well as logistic and food processing services. In addition, it is involved in real estate holding activities. The company is headquartered in City of Industry, California.
HFFG (HF Foods Group Inc.) trades in the Consumer Defensive sector, specifically Food Distribution, with a market capitalization of approximately $107.5M, a beta of 0.53 versus the broader market, a 52-week range of 1.38-4.32, average daily share volume of 205K, a public-listing history dating back to 2017, approximately 1K full-time employees. These structural characteristics shape how HFFG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates HFFG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on HFFG?
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 HFFG snapshot
As of May 15, 2026, spot at $1.98, ATM IV 198.20%, IV rank 47.18%, expected move 56.82%. The butterfly on HFFG 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 HFFG specifically: HFFG IV at 198.20% 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 56.82% (roughly $1.13 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 HFFG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HFFG should anchor to the underlying notional of $1.98 per share and to the trader's directional view on HFFG stock.
HFFG butterfly setup
The HFFG 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 HFFG near $1.98, the first option leg uses a $1.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HFFG 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 HFFG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.88 | N/A |
| Sell 2 | Call | $1.98 | N/A |
| Buy 1 | Call | $2.08 | N/A |
HFFG 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.
HFFG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HFFG. 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 HFFG
Butterflies on HFFG are pinning bets - traders use them when they expect HFFG 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.
HFFG thesis for this butterfly
The market-implied 1-standard-deviation range for HFFG extends from approximately $0.85 on the downside to $3.11 on the upside. A HFFG long call butterfly is a pinning play: it pays maximum at the middle strike if HFFG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HFFG IV rank near 47.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HFFG should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, HFFG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HFFG-specific events.
HFFG 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. HFFG positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HFFG alongside the broader basket even when HFFG-specific fundamentals are unchanged. Always rebuild the position from current HFFG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HFFG?
- A butterfly on HFFG is the butterfly strategy applied to HFFG (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 HFFG stock trading near $1.98, the strikes shown on this page are snapped to the nearest listed HFFG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HFFG 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 HFFG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 198.20%), 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 HFFG butterfly?
- The breakeven for the HFFG 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 HFFG market-implied 1-standard-deviation expected move is approximately 56.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HFFG?
- Butterflies on HFFG are pinning bets - traders use them when they expect HFFG 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 HFFG implied volatility affect this butterfly?
- HFFG ATM IV is at 198.20% with IV rank near 47.18%, 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.