How are HLT 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 HLT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.54%), the computed maximum profit is $1,089.54 per contract and the computed maximum loss is -$385.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HLT butterfly?

The breakeven for the HLT butterfly priced on this page is roughly $303.85 and $326.15 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 HLT market-implied 1-standard-deviation expected move is approximately 7.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HLT implied volatility affect this butterfly?

HLT ATM IV is at 27.54% with IV rank near 50.42%, 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.

HLT Butterfly Strategy

HLT (Hilton Worldwide Holdings Inc.), in the Consumer Cyclical sector, (Travel Lodging industry), listed on NYSE.

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, and leasing hotels and resorts. It operates in two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brand names, trademarks, and service marks. It operates a brand portfolio of luxury, lifestyle, full service, focused service, all-suites hotel, and timeshare under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Signia by Hilton, NoMad, Canopy by Hilton, Graduate by Hilton, Tempo by Hilton, Motto by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Outset Collection by Hilton, Embassy Suites by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, LivSmart Studios by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Spark by Hilton, Hilton Grand Vacations, Small Luxury Hotels of the World, AutoCamp, and Hilton Honors brand names. The company has operations in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

HLT (Hilton Worldwide Holdings Inc.) trades in the Consumer Cyclical sector, specifically Travel Lodging, with a market capitalization of approximately $70.89B, a trailing P/E of 46.25, a beta of 1.07 versus the broader market, a 52-week range of 241.45-344.75, average daily share volume of 1.8M, a public-listing history dating back to 2013, approximately 182K full-time employees. These structural characteristics shape how HLT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.07 places HLT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 46.25 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. HLT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on HLT?

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 HLT snapshot

As of May 15, 2026, spot at $316.33, ATM IV 27.54%, IV rank 50.42%, expected move 7.89%. The butterfly on HLT 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 HLT specifically: HLT IV at 27.54% 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 7.89% (roughly $24.97 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 HLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on HLT should anchor to the underlying notional of $316.33 per share and to the trader's directional view on HLT stock.

HLT butterfly setup

The HLT 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 HLT near $316.33, the first option leg uses a $300.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HLT 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 HLT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$300.00	$21.25
Sell 2	Call	$315.00	$11.00
Buy 1	Call	$330.00	$4.60

HLT butterfly risk and reward

Net Premium / Debit: -$385.00
Max Profit (per contract): $1,089.54
Max Loss (per contract): -$385.00
Breakeven(s): $303.85, $326.15
Risk / Reward Ratio: 2.830

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.

HLT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HLT. 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%	-$385.00
$69.95	-77.9%	-$385.00
$139.89	-55.8%	-$385.00
$209.83	-33.7%	-$385.00
$279.77	-11.6%	-$385.00
$349.72	+10.6%	-$385.00
$419.66	+32.7%	-$385.00
$489.60	+54.8%	-$385.00
$559.54	+76.9%	-$385.00
$629.48	+99.0%	-$385.00

When traders use butterfly on HLT

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

HLT thesis for this butterfly

The market-implied 1-standard-deviation range for HLT extends from approximately $291.36 on the downside to $341.30 on the upside. A HLT long call butterfly is a pinning play: it pays maximum at the middle strike if HLT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HLT IV rank near 50.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HLT should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, HLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HLT-specific events.

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

Frequently asked questions

What is a butterfly on HLT?: A butterfly on HLT is the butterfly strategy applied to HLT (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 HLT stock trading near $316.33, the strikes shown on this page are snapped to the nearest listed HLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HLT 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 HLT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.54%), the computed maximum profit is $1,089.54 per contract and the computed maximum loss is -$385.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HLT butterfly?: The breakeven for the HLT butterfly priced on this page is roughly $303.85 and $326.15 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 HLT market-implied 1-standard-deviation expected move is approximately 7.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HLT?: Butterflies on HLT are pinning bets - traders use them when they expect HLT 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 HLT implied volatility affect this butterfly?: HLT ATM IV is at 27.54% with IV rank near 50.42%, 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.