HLIO Butterfly Strategy
HLIO (Helios Technologies, Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Helios Technologies, Inc., together with its subsidiaries, develops, manufactures, and sells solutions for the hydraulics and electronics markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Hydraulics and Electronics. The Hydraulics segment offers cartridge valve technology products to control rates and direction of fluid flow, and to regulate and control pressures for industrial and mobile applications; quick release coupling solutions for the agriculture, construction equipment, and industrial markets; and hydraulic system design that provides engineered solutions for machine users, manufacturers, or designers. This segment sells its products under the Sun Hydraulics, Faster, and Custom Fluidpower brands. The Electronics segment offers displays, controls, and instrumentation products for off-highway, recreational and commercial marine, power sports and specialty vehicles, agriculture and water pumping, power generation, health and wellness, and engine-driven industrial equipment markets. This segment sells its products under the Enovation Controls, Murphy, and Balboa Water Group brands.
HLIO (Helios Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $2.49B, a trailing P/E of 40.85, a beta of 1.23 versus the broader market, a 52-week range of 28.79-80, average daily share volume of 375K, a public-listing history dating back to 1997, approximately 3K full-time employees. These structural characteristics shape how HLIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places HLIO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 40.85 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. HLIO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on HLIO?
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 HLIO snapshot
As of May 15, 2026, spot at $77.01, ATM IV 44.30%, IV rank 7.39%, expected move 12.70%. The butterfly on HLIO 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 HLIO specifically: HLIO IV at 44.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a HLIO butterfly, with a market-implied 1-standard-deviation move of approximately 12.70% (roughly $9.78 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 HLIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on HLIO should anchor to the underlying notional of $77.01 per share and to the trader's directional view on HLIO stock.
HLIO butterfly setup
The HLIO 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 HLIO near $77.01, the first option leg uses a $73.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HLIO 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 HLIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $73.16 | N/A |
| Sell 2 | Call | $77.01 | N/A |
| Buy 1 | Call | $80.86 | N/A |
HLIO 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.
HLIO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HLIO. 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 HLIO
Butterflies on HLIO are pinning bets - traders use them when they expect HLIO 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.
HLIO thesis for this butterfly
The market-implied 1-standard-deviation range for HLIO extends from approximately $67.23 on the downside to $86.79 on the upside. A HLIO long call butterfly is a pinning play: it pays maximum at the middle strike if HLIO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HLIO IV rank near 7.39% 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 HLIO at 44.30%. As a Industrials name, HLIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HLIO-specific events.
HLIO 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. HLIO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HLIO alongside the broader basket even when HLIO-specific fundamentals are unchanged. Always rebuild the position from current HLIO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HLIO?
- A butterfly on HLIO is the butterfly strategy applied to HLIO (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 HLIO stock trading near $77.01, the strikes shown on this page are snapped to the nearest listed HLIO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HLIO 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 HLIO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.30%), 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 HLIO butterfly?
- The breakeven for the HLIO 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 HLIO market-implied 1-standard-deviation expected move is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HLIO?
- Butterflies on HLIO are pinning bets - traders use them when they expect HLIO 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 HLIO implied volatility affect this butterfly?
- HLIO ATM IV is at 44.30% with IV rank near 7.39%, 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.