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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.00%), the computed maximum profit is $175.00 per contract and the computed maximum loss is -$325.00 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 $48.25 at expiration, derived from the September 30, 2026 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 LMB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.48%; 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 54.00% with IV rank near 9.11%, 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.

LMB Butterfly Strategy

LMB (Limbach Holdings, Inc.), in the Basic Materials sector, (Construction Materials industry), listed on NASDAQ.

Limbach Holdings, Inc. operates as a building systems solution company in the United States. The company operates through two segments, Owner Direct Relationships and General Contractor Relationships. It engages in the construction or renovation projects that involve primarily include mechanical, electrical, plumbing, and controls services (MEPC). It also provides professional and consultative services; inspection, troubleshooting, repair, and services; system and/or facility assessments; turnkey rental equipment solutions; MEPC infrastructure solutions; and customized solutions. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers; entertainment facilities, and amusement rides and parks; data centers; automotive, energy and general manufacturing plants; and life sciences, including organizations and companies, whose work is centered around research and development focused on living things. Limbach Holdings, Inc. was founded in 1901 and is headquartered in Tampa, Florida.

LMB (Limbach Holdings, Inc.) trades in the Basic Materials sector, specifically Construction Materials, with a market capitalization of approximately $583.3M, a trailing P/E of 19.30, a beta of 1.41 versus the broader market, a 52-week range of 40.74-114.95, average daily share volume of 334K, a public-listing history dating back to 2014, approximately 2K 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 1.41 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.

LMB snapshot

As of September 30, 2026, spot at $49.17, ATM IV 54.00%, IV rank 9.11%, expected move 15.48%. The butterfly on LMB below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.

Why this butterfly structure on LMB specifically: LMB IV at 54.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a LMB butterfly, with a market-implied 1-standard-deviation move of approximately 15.48% (roughly $7.61 on the underlying). The 16-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 $49.17 per share and to the trader's directional view on LMB stock.

LMB butterfly setup

The LMB butterfly below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LMB at $49.17 on that close, the first option leg uses a $45.00 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 16-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	$45.00	$4.90
Sell 2	Call	$50.00	$1.65
Buy 1	Call	$50.00	$1.65

LMB butterfly risk and reward

Net Premium / Debit: -$325.00
Max Profit (per contract): $175.00
Max Loss (per contract): -$325.00
Breakeven(s): $48.25
Risk / Reward Ratio: 0.538

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$325.00
$10.88	-77.9%	-$325.00
$21.75	-55.8%	-$325.00
$32.62	-33.7%	-$325.00
$43.49	-11.5%	-$325.00
$54.36	+10.6%	+$175.00
$65.23	+32.7%	+$175.00
$76.10	+54.8%	+$175.00
$86.98	+76.9%	+$175.00
$97.85	+99.0%	+$175.00

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 $41.56 on the downside to $56.78 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 9.11% 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 LMB at 54.00%. As a Basic Materials 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 Basic Materials 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 at $49.17 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed LMB chain strike and the premiums come straight from that session's 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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.00%), the computed maximum profit is $175.00 per contract and the computed maximum loss is -$325.00 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 $48.25 at expiration, derived from the September 30, 2026 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 LMB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.48%; 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 54.00% with IV rank near 9.11%, 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.