HLLY Butterfly Strategy
HLLY (Holley Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Holley Inc. designs, manufactures, and markets automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. The company's products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products, and exhaust products as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers wheels, chassis and suspension products, helmets, head and neck restraints, seat belts, firesuits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, APR, MSD, Flowmaster, Powerteq, Accel, and Simpson brands to retailers directly, as well as through distributors and online channel. The company was founded in 1903 and is headquartered in Bowling Green, Kentucky.
HLLY (Holley Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $323.8M, a trailing P/E of 13.65, a beta of 1.40 versus the broader market, a 52-week range of 1.905-4.48, average daily share volume of 854K, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how HLLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates HLLY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on HLLY?
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 HLLY snapshot
As of May 15, 2026, spot at $2.66, ATM IV 120.00%, IV rank 43.82%, expected move 34.40%. The butterfly on HLLY 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 HLLY specifically: HLLY IV at 120.00% 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 34.40% (roughly $0.92 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 HLLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HLLY should anchor to the underlying notional of $2.66 per share and to the trader's directional view on HLLY stock.
HLLY butterfly setup
The HLLY 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 HLLY near $2.66, the first option leg uses a $2.53 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HLLY 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 HLLY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.53 | N/A |
| Sell 2 | Call | $2.66 | N/A |
| Buy 1 | Call | $2.79 | N/A |
HLLY 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.
HLLY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HLLY. 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 HLLY
Butterflies on HLLY are pinning bets - traders use them when they expect HLLY 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.
HLLY thesis for this butterfly
The market-implied 1-standard-deviation range for HLLY extends from approximately $1.74 on the downside to $3.58 on the upside. A HLLY long call butterfly is a pinning play: it pays maximum at the middle strike if HLLY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HLLY IV rank near 43.82% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HLLY should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, HLLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HLLY-specific events.
HLLY 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. HLLY positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HLLY alongside the broader basket even when HLLY-specific fundamentals are unchanged. Always rebuild the position from current HLLY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HLLY?
- A butterfly on HLLY is the butterfly strategy applied to HLLY (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 HLLY stock trading near $2.66, the strikes shown on this page are snapped to the nearest listed HLLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HLLY 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 HLLY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 120.00%), 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 HLLY butterfly?
- The breakeven for the HLLY 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 HLLY market-implied 1-standard-deviation expected move is approximately 34.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HLLY?
- Butterflies on HLLY are pinning bets - traders use them when they expect HLLY 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 HLLY implied volatility affect this butterfly?
- HLLY ATM IV is at 120.00% with IV rank near 43.82%, 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.