JMKE Butterfly Strategy
JMKE (Jersey Mike's Subs Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NYSE.
Jersey Mike's Subs, Inc. engages in franchising fast casual, submarine-style sandwich restaurants specializing in authentic, hand-crafted, and craveable subs. The company was founded by Peter Cancro in 1956 and is headquartered in Tinton Falls, DE.
JMKE (Jersey Mike's Subs Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $5.28B, a beta of 0.00 versus the broader market, a 52-week range of 20.63-24.99, average daily share volume of 8.6M, a public-listing history dating back to 2026, approximately 899 full-time employees. These structural characteristics shape how JMKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates JMKE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on JMKE?
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.
JMKE snapshot
As of August 14, 2026, spot at $22.04, ATM IV 50.40%, expected move 14.45%. The butterfly on JMKE below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on JMKE specifically: IV rank is unavailable in the current snapshot, so regime-based timing for JMKE is inferred from ATM IV at 50.40% alone, with a market-implied 1-standard-deviation move of approximately 14.45% (roughly $3.18 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated JMKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on JMKE should anchor to the underlying notional of $22.04 per share and to the trader's directional view on JMKE stock.
JMKE butterfly setup
The JMKE 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 JMKE at $22.04 on that close, the first option leg uses a $20.94 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JMKE chain at a 35-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 JMKE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.94 | N/A |
| Sell 2 | Call | $22.04 | N/A |
| Buy 1 | Call | $23.14 | N/A |
JMKE 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.
JMKE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on JMKE. 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 JMKE
Butterflies on JMKE are pinning bets - traders use them when they expect JMKE 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.
JMKE thesis for this butterfly
The market-implied 1-standard-deviation range for JMKE extends from approximately $18.86 on the downside to $25.22 on the upside. A JMKE long call butterfly is a pinning play: it pays maximum at the middle strike if JMKE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Consumer Cyclical name, JMKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JMKE-specific events.
JMKE 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. JMKE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JMKE alongside the broader basket even when JMKE-specific fundamentals are unchanged. Always rebuild the position from current JMKE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on JMKE?
- A butterfly on JMKE is the butterfly strategy applied to JMKE (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 JMKE stock at $22.04 on the most recent close, the strikes shown on this page are snapped to the nearest listed JMKE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are JMKE 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 JMKE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.40%), 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 JMKE butterfly?
- The breakeven for the JMKE butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The JMKE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on JMKE?
- Butterflies on JMKE are pinning bets - traders use them when they expect JMKE 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 JMKE implied volatility affect this butterfly?
- Current JMKE ATM IV is 50.40%; IV rank context is unavailable in the current snapshot.