LEGH Butterfly Strategy
LEGH (Legacy Housing Corporation), in the Consumer Cyclical sector, (Residential Construction industry), listed on NASDAQ.
Founded in Bedford, Texas, in 2005, Legacy Housing Corporation specializes in the construction, sale, and financing of manufactured homes and compact living units, primarily serving the southern United States. The company not only manufactures and arranges transportation for its modular residences but also provides a comprehensive suite of financial services. These offerings include wholesale funding for independent dealers and mobile home park operators, inventory financing for retailers, and direct consumer loans for purchasing their products. Legacy Housing further extends credit to owners of manufactured housing communities who acquire their homes for rental purposes, and is actively involved in developing and financing new communities. Their diverse product range features homes spanning one to five bedrooms with one to three-and-a-half bathrooms. Branded as "Legacy" homes, these units are distributed through a robust network of 176 independent and 13 company-owned retail outlets, alongside direct sales to manufactured home community proprietors across 15 U.S. states.
LEGH (Legacy Housing Corporation) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $683.5M, a trailing P/E of 13.34, a beta of 0.78 versus the broader market, a 52-week range of 18.285-31.34, average daily share volume of 97K, a public-listing history dating back to 2018, approximately 592 full-time employees. These structural characteristics shape how LEGH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places LEGH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on LEGH?
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.
LEGH snapshot
As of August 14, 2026, spot at $29.48, ATM IV 54.40%, IV rank 10.89%, expected move 15.60%. The butterfly on LEGH 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 LEGH specifically: LEGH IV at 54.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a LEGH butterfly, with a market-implied 1-standard-deviation move of approximately 15.60% (roughly $4.60 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 LEGH expiries trade a higher absolute premium for lower per-day decay. Position sizing on LEGH should anchor to the underlying notional of $29.48 per share and to the trader's directional view on LEGH stock.
LEGH butterfly setup
The LEGH 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 LEGH at $29.48 on that close, the first option leg uses a $28.01 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LEGH 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 LEGH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.01 | N/A |
| Sell 2 | Call | $29.48 | N/A |
| Buy 1 | Call | $30.95 | N/A |
LEGH 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.
LEGH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LEGH. 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 LEGH
Butterflies on LEGH are pinning bets - traders use them when they expect LEGH 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.
LEGH thesis for this butterfly
The market-implied 1-standard-deviation range for LEGH extends from approximately $24.88 on the downside to $34.08 on the upside. A LEGH long call butterfly is a pinning play: it pays maximum at the middle strike if LEGH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LEGH IV rank near 10.89% 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 LEGH at 54.40%. As a Consumer Cyclical name, LEGH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LEGH-specific events.
LEGH 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. LEGH positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LEGH alongside the broader basket even when LEGH-specific fundamentals are unchanged. Always rebuild the position from current LEGH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LEGH?
- A butterfly on LEGH is the butterfly strategy applied to LEGH (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 LEGH stock at $29.48 on the most recent close, the strikes shown on this page are snapped to the nearest listed LEGH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LEGH 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 LEGH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.40%), 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 LEGH butterfly?
- The breakeven for the LEGH 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 LEGH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LEGH?
- Butterflies on LEGH are pinning bets - traders use them when they expect LEGH 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 LEGH implied volatility affect this butterfly?
- LEGH ATM IV is at 54.40% with IV rank near 10.89%, 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.