How are HLNE 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 HLNE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 61.80%), the computed maximum profit is $463.53 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HLNE butterfly?

The breakeven for the HLNE butterfly priced on this page is roughly $80.15 and $90.11 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 HLNE market-implied 1-standard-deviation expected move is approximately 17.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HLNE implied volatility affect this butterfly?

HLNE ATM IV is at 61.80% with IV rank near 70.64%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

HLNE Butterfly Strategy

HLNE (Hamilton Lane Incorporated), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

Hamilton Lane Incorporated is an investment firm specializing in direct and fund of fund investments. It provides following services: separate accounts (customized to each individual client and structured as single client vehicles); specialized strategies (fund-of-funds, secondaries, co-investments, taft-hartley, distribution management); advisory relationships (including due diligence, strategic portfolio planning, monitoring and reporting services); and reporting and analytics solutions. For direct investments, the firm invests in early, mid and late venture, mature companies, growth equity, emerging growth, distressed debt, later stage, turnarounds, bridge financing, mezzanine financing, and buyouts in middle market companies. For fund of fund investments, it invests in mezzanine, venture capital, private equity, turnaround, secondary investments, real estate, and special situation funds. The firm invests in real estate investments. It also invest in technology, healthcare, education, natural resources, energy and essential consumer goods sectors, cleantech, and environment, community development, and financial empowerment.

HLNE (Hamilton Lane Incorporated) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.84B, a trailing P/E of 13.78, a beta of 1.19 versus the broader market, a 52-week range of 84.08-179.19, average daily share volume of 898K, a public-listing history dating back to 2017, approximately 700 full-time employees. These structural characteristics shape how HLNE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.19 places HLNE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HLNE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on HLNE?

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 HLNE snapshot

As of May 15, 2026, spot at $85.64, ATM IV 61.80%, IV rank 70.64%, expected move 17.72%. The butterfly on HLNE 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 HLNE specifically: HLNE IV at 61.80% is rich versus its 1-year range, which makes a premium-buying HLNE butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 17.72% (roughly $15.17 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 HLNE expiries trade a higher absolute premium for lower per-day decay. Position sizing on HLNE should anchor to the underlying notional of $85.64 per share and to the trader's directional view on HLNE stock.

HLNE butterfly setup

The HLNE 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 HLNE near $85.64, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HLNE 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 HLNE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$80.00	$10.30
Sell 2	Call	$85.00	$7.50
Buy 1	Call	$90.00	$4.85

HLNE butterfly risk and reward

Net Premium / Debit: -$15.00
Max Profit (per contract): $463.53
Max Loss (per contract): -$15.00
Breakeven(s): $80.15, $90.11
Risk / Reward Ratio: 30.902

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.

HLNE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HLNE. 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	-100.0%	-$15.00
$18.94	-77.9%	-$15.00
$37.88	-55.8%	-$15.00
$56.81	-33.7%	-$15.00
$75.75	-11.6%	-$15.00
$94.68	+10.6%	-$15.00
$113.62	+32.7%	-$15.00
$132.55	+54.8%	-$15.00
$151.48	+76.9%	-$15.00
$170.42	+99.0%	-$15.00

When traders use butterfly on HLNE

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

HLNE thesis for this butterfly

The market-implied 1-standard-deviation range for HLNE extends from approximately $70.47 on the downside to $100.81 on the upside. A HLNE long call butterfly is a pinning play: it pays maximum at the middle strike if HLNE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HLNE IV rank near 70.64% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on HLNE at 61.80%. As a Financial Services name, HLNE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HLNE-specific events.

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

Frequently asked questions

What is a butterfly on HLNE?: A butterfly on HLNE is the butterfly strategy applied to HLNE (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 HLNE stock trading near $85.64, the strikes shown on this page are snapped to the nearest listed HLNE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HLNE 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 HLNE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 61.80%), the computed maximum profit is $463.53 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HLNE butterfly?: The breakeven for the HLNE butterfly priced on this page is roughly $80.15 and $90.11 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 HLNE market-implied 1-standard-deviation expected move is approximately 17.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HLNE?: Butterflies on HLNE are pinning bets - traders use them when they expect HLNE 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 HLNE implied volatility affect this butterfly?: HLNE ATM IV is at 61.80% with IV rank near 70.64%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.