How are HL 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 HL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 69.82%), the computed maximum profit is $56.85 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HL butterfly?

The breakeven for the HL butterfly priced on this page is roughly $18.15 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 HL market-implied 1-standard-deviation expected move is approximately 20.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HL implied volatility affect this butterfly?

HL ATM IV is at 69.82% with IV rank near 42.81%, 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.

HL Butterfly Strategy

HL (Hecla Mining Company), in the Basic Materials sector, (Gold industry), listed on NYSE.

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for sale to custom smelters, metal traders, and third-party processors,; and doré containing silver and gold. It owns 100% interests in the Greens Creek mine located on Admiralty Island in southeast Alaska; the Lucky Friday mine situated in northern Idaho; the Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and the San Sebastian mine situated in the city of Durango, Mexico. The company also holds 100% interests in the Fire Creek mine located in Lander County, Nevada; and the Hollister and Midas mines situated in Elko County, Nevada. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.

HL (Hecla Mining Company) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $14.12B, a trailing P/E of 51.54, a beta of 1.26 versus the broader market, a 52-week range of 4.71-34.17, average daily share volume of 17.0M, a public-listing history dating back to 1980, approximately 2K full-time employees. These structural characteristics shape how HL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.26 places HL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 51.54 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. HL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on HL?

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 HL snapshot

As of May 15, 2026, spot at $17.68, ATM IV 69.82%, IV rank 42.81%, expected move 20.02%. The butterfly on HL 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 HL specifically: HL IV at 69.82% 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 20.02% (roughly $3.54 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 HL expiries trade a higher absolute premium for lower per-day decay. Position sizing on HL should anchor to the underlying notional of $17.68 per share and to the trader's directional view on HL stock.

HL butterfly setup

The HL 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 HL near $17.68, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HL 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 HL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.00	$1.80
Sell 2	Call	$17.50	$1.52
Buy 1	Call	$18.50	$1.08

HL butterfly risk and reward

Net Premium / Debit: +$15.00
Max Profit (per contract): $56.85
Max Loss (per contract): -$35.00
Breakeven(s): $18.15
Risk / Reward Ratio: 1.624

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.

HL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HL. 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%	+$15.00
$3.92	-77.8%	+$15.00
$7.83	-55.7%	+$15.00
$11.73	-33.6%	+$15.00
$15.64	-11.5%	+$15.00
$19.55	+10.6%	-$35.00
$23.46	+32.7%	-$35.00
$27.37	+54.8%	-$35.00
$31.27	+76.9%	-$35.00
$35.18	+99.0%	-$35.00

When traders use butterfly on HL

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

HL thesis for this butterfly

The market-implied 1-standard-deviation range for HL extends from approximately $14.14 on the downside to $21.22 on the upside. A HL long call butterfly is a pinning play: it pays maximum at the middle strike if HL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HL IV rank near 42.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HL should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, HL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HL-specific events.

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

Frequently asked questions

What is a butterfly on HL?: A butterfly on HL is the butterfly strategy applied to HL (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 HL stock trading near $17.68, the strikes shown on this page are snapped to the nearest listed HL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HL 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 HL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 69.82%), the computed maximum profit is $56.85 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HL butterfly?: The breakeven for the HL butterfly priced on this page is roughly $18.15 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 HL market-implied 1-standard-deviation expected move is approximately 20.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HL?: Butterflies on HL are pinning bets - traders use them when they expect HL 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 HL implied volatility affect this butterfly?: HL ATM IV is at 69.82% with IV rank near 42.81%, 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.