JMSB Butterfly Strategy
JMSB (John Marshall Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
John Marshall Bancorp, Inc. functions as the parent entity for John Marshall Bank, which offers a comprehensive array of banking products and financial services. The institution provides various deposit options, including checking, demand, NOW, savings, and money market accounts, as well as certificates of deposit. For its clientele, the bank extends diverse lending solutions, such as commercial loans, construction and development financing, commercial term loans, mortgage services, commercial real estate loans, and a range of industrial and other commercial lines of credit. Beyond core lending and deposit products, John Marshall Bank also furnishes essential financial tools like debit and credit cards, alongside specialized services such as treasury and cash management, investment offerings, business and personal insurance, remote deposit capture, deposit sweep, and convenient online and mobile banking platforms. The bank's customer base is broad, catering to small to medium-sized businesses, their owners and employees, professional corporations, non-profit organizations, and individual clients. Established in 2005, John Marshall Bancorp, Inc. has its headquarters in Reston, Virginia.
JMSB (John Marshall Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $327.5M, a trailing P/E of 13.41, a beta of 0.42 versus the broader market, a 52-week range of 18.5-24.26, average daily share volume of 44K, a public-listing history dating back to 2017, approximately 140 full-time employees. These structural characteristics shape how JMSB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates JMSB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. JMSB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on JMSB?
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.
JMSB snapshot
As of August 14, 2026, spot at $23.30, ATM IV 64.10%, IV rank 20.52%, expected move 18.38%. The butterfly on JMSB 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 JMSB specifically: JMSB IV at 64.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a JMSB butterfly, with a market-implied 1-standard-deviation move of approximately 18.38% (roughly $4.28 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 JMSB expiries trade a higher absolute premium for lower per-day decay. Position sizing on JMSB should anchor to the underlying notional of $23.30 per share and to the trader's directional view on JMSB stock.
JMSB butterfly setup
The JMSB 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 JMSB at $23.30 on that close, the first option leg uses a $22.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JMSB 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 JMSB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $22.13 | N/A |
| Sell 2 | Call | $23.30 | N/A |
| Buy 1 | Call | $24.47 | N/A |
JMSB 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.
JMSB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on JMSB. 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 JMSB
Butterflies on JMSB are pinning bets - traders use them when they expect JMSB 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.
JMSB thesis for this butterfly
The market-implied 1-standard-deviation range for JMSB extends from approximately $19.02 on the downside to $27.58 on the upside. A JMSB long call butterfly is a pinning play: it pays maximum at the middle strike if JMSB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current JMSB IV rank near 20.52% 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 JMSB at 64.10%. As a Financial Services name, JMSB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JMSB-specific events.
JMSB 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. JMSB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JMSB alongside the broader basket even when JMSB-specific fundamentals are unchanged. Always rebuild the position from current JMSB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on JMSB?
- A butterfly on JMSB is the butterfly strategy applied to JMSB (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 JMSB stock at $23.30 on the most recent close, the strikes shown on this page are snapped to the nearest listed JMSB chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are JMSB 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 JMSB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 64.10%), 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 JMSB butterfly?
- The breakeven for the JMSB 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 JMSB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on JMSB?
- Butterflies on JMSB are pinning bets - traders use them when they expect JMSB 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 JMSB implied volatility affect this butterfly?
- JMSB ATM IV is at 64.10% with IV rank near 20.52%, 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.