How are LCII 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 LCII butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $401.32 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LCII butterfly?

The breakeven for the LCII butterfly priced on this page is roughly $105.42 and $114.55 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 LCII market-implied 1-standard-deviation expected move is approximately 11.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LCII implied volatility affect this butterfly?

LCII ATM IV is at 38.50% with IV rank near 6.04%, 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.

LCII Butterfly Strategy

LCII (LCI Industries), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing, as well as travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, and fenders to the marine industry.

LCII (LCI Industries) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $2.69B, a trailing P/E of 13.33, a beta of 1.22 versus the broader market, a 52-week range of 84.25-159.66, average daily share volume of 377K, a public-listing history dating back to 1985, approximately 12K full-time employees. These structural characteristics shape how LCII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.22 places LCII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LCII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on LCII?

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 LCII snapshot

As of May 15, 2026, spot at $111.09, ATM IV 38.50%, IV rank 6.04%, expected move 11.04%. The butterfly on LCII 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 LCII specifically: LCII IV at 38.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a LCII butterfly, with a market-implied 1-standard-deviation move of approximately 11.04% (roughly $12.26 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 LCII expiries trade a higher absolute premium for lower per-day decay. Position sizing on LCII should anchor to the underlying notional of $111.09 per share and to the trader's directional view on LCII stock.

LCII butterfly setup

The LCII 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 LCII near $111.09, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LCII 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 LCII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$8.15
Sell 2	Call	$110.00	$5.45
Buy 1	Call	$115.00	$3.20

LCII butterfly risk and reward

Net Premium / Debit: -$45.00
Max Profit (per contract): $401.32
Max Loss (per contract): -$45.00
Breakeven(s): $105.42, $114.55
Risk / Reward Ratio: 8.918

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.

LCII butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LCII. 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%	-$45.00
$24.57	-77.9%	-$45.00
$49.13	-55.8%	-$45.00
$73.69	-33.7%	-$45.00
$98.26	-11.6%	-$45.00
$122.82	+10.6%	-$45.00
$147.38	+32.7%	-$45.00
$171.94	+54.8%	-$45.00
$196.50	+76.9%	-$45.00
$221.06	+99.0%	-$45.00

When traders use butterfly on LCII

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

LCII thesis for this butterfly

The market-implied 1-standard-deviation range for LCII extends from approximately $98.83 on the downside to $123.35 on the upside. A LCII long call butterfly is a pinning play: it pays maximum at the middle strike if LCII settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LCII IV rank near 6.04% 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 LCII at 38.50%. As a Consumer Cyclical name, LCII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LCII-specific events.

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

Frequently asked questions

What is a butterfly on LCII?: A butterfly on LCII is the butterfly strategy applied to LCII (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 LCII stock trading near $111.09, the strikes shown on this page are snapped to the nearest listed LCII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LCII 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 LCII butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $401.32 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LCII butterfly?: The breakeven for the LCII butterfly priced on this page is roughly $105.42 and $114.55 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 LCII market-implied 1-standard-deviation expected move is approximately 11.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LCII?: Butterflies on LCII are pinning bets - traders use them when they expect LCII 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 LCII implied volatility affect this butterfly?: LCII ATM IV is at 38.50% with IV rank near 6.04%, 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.