How are LMB 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 LMB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 66.20%), the computed maximum profit is $412.42 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LMB butterfly?

The breakeven for the LMB butterfly priced on this page is roughly $70.73 and $79.27 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 LMB market-implied 1-standard-deviation expected move is approximately 18.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LMB implied volatility affect this butterfly?

LMB ATM IV is at 66.20% with IV rank near 40.95%, 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.

LMB Butterfly Strategy

LMB (Limbach Holdings, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NASDAQ.

Limbach Holdings, Inc. operates as an integrated building systems solutions company in the United States. It operates in two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the design, prefabrication, installation, management, and maintenance of mechanical, electrical, plumbing, and control systems, as well as heating, ventilation, air-conditioning (HVAC) system. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefabrication construction, and sustainable building solutions and practices. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers and K-12 facilities; sports arenas; entertainment facilities, and amusement rides; passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; office building and other commercial structures; data centers; and industrial manufacturing facilities. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

LMB (Limbach Holdings, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $855.2M, a trailing P/E of 25.39, a beta of 1.53 versus the broader market, a 52-week range of 65.08-154.05, average daily share volume of 241K, a public-listing history dating back to 2014, approximately 1K full-time employees. These structural characteristics shape how LMB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.53 indicates LMB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on LMB?

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 LMB snapshot

As of May 14, 2026, spot at $74.47, ATM IV 66.20%, IV rank 40.95%, expected move 18.98%. The butterfly on LMB 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 LMB specifically: LMB IV at 66.20% 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 18.98% (roughly $14.13 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 LMB expiries trade a higher absolute premium for lower per-day decay. Position sizing on LMB should anchor to the underlying notional of $74.47 per share and to the trader's directional view on LMB stock.

LMB butterfly setup

The LMB 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 LMB near $74.47, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LMB 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 LMB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$7.60
Sell 2	Call	$75.00	$5.10
Buy 1	Call	$80.00	$3.33

LMB butterfly risk and reward

Net Premium / Debit: -$72.50
Max Profit (per contract): $412.42
Max Loss (per contract): -$72.50
Breakeven(s): $70.73, $79.27
Risk / Reward Ratio: 5.689

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.

LMB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LMB. 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%	-$72.50
$16.47	-77.9%	-$72.50
$32.94	-55.8%	-$72.50
$49.40	-33.7%	-$72.50
$65.87	-11.6%	-$72.50
$82.33	+10.6%	-$72.50
$98.80	+32.7%	-$72.50
$115.26	+54.8%	-$72.50
$131.73	+76.9%	-$72.50
$148.19	+99.0%	-$72.50

When traders use butterfly on LMB

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

LMB thesis for this butterfly

The market-implied 1-standard-deviation range for LMB extends from approximately $60.34 on the downside to $88.60 on the upside. A LMB long call butterfly is a pinning play: it pays maximum at the middle strike if LMB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LMB IV rank near 40.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on LMB should anchor more to the directional view and the expected-move geometry. As a Industrials name, LMB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LMB-specific events.

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

Frequently asked questions

What is a butterfly on LMB?: A butterfly on LMB is the butterfly strategy applied to LMB (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 LMB stock trading near $74.47, the strikes shown on this page are snapped to the nearest listed LMB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LMB 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 LMB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 66.20%), the computed maximum profit is $412.42 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LMB butterfly?: The breakeven for the LMB butterfly priced on this page is roughly $70.73 and $79.27 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 LMB market-implied 1-standard-deviation expected move is approximately 18.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LMB?: Butterflies on LMB are pinning bets - traders use them when they expect LMB 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 LMB implied volatility affect this butterfly?: LMB ATM IV is at 66.20% with IV rank near 40.95%, 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.