MAIR Butterfly Strategy
MAIR (Madison Air Solutions Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Madison Air Solutions Corporation (MASC) specializes in the development and production of advanced indoor air quality and HVAC systems. Its operations are strategically divided into two distinct segments: Commercial and Residential. The Commercial division targets specialized settings that demand superior air quality solutions, while its Residential arm is dedicated to providing optimal air environments for private households. Established in 2017 by Larry W. Gies, MASC maintains its corporate headquarters in Chicago, Illinois.
MAIR (Madison Air Solutions Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $18.84B, a trailing P/E of 596.64, a beta of 0.64 versus the broader market, a 52-week range of 31-44.5, average daily share volume of 3.0M, a public-listing history dating back to 2026, approximately 9K full-time employees. These structural characteristics shape how MAIR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates MAIR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 596.64 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on MAIR?
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 MAIR snapshot
As of June 30, 2026, spot at $39.06, ATM IV 58.20%, expected move 16.69%. The butterfly on MAIR 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 17-day expiry.
Why this butterfly structure on MAIR specifically: IV rank is unavailable in the current snapshot, so regime-based timing for MAIR is inferred from ATM IV at 58.20% alone, with a market-implied 1-standard-deviation move of approximately 16.69% (roughly $6.52 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAIR expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAIR should anchor to the underlying notional of $39.06 per share and to the trader's directional view on MAIR stock.
MAIR butterfly setup
The MAIR 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 MAIR near $39.06, the first option leg uses a $37.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAIR chain at a 17-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 MAIR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.11 | N/A |
| Sell 2 | Call | $39.06 | N/A |
| Buy 1 | Call | $41.01 | N/A |
MAIR 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.
MAIR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MAIR. 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 MAIR
Butterflies on MAIR are pinning bets - traders use them when they expect MAIR 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.
MAIR thesis for this butterfly
The market-implied 1-standard-deviation range for MAIR extends from approximately $32.54 on the downside to $45.58 on the upside. A MAIR long call butterfly is a pinning play: it pays maximum at the middle strike if MAIR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Industrials name, MAIR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAIR-specific events.
MAIR 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. MAIR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAIR alongside the broader basket even when MAIR-specific fundamentals are unchanged. Always rebuild the position from current MAIR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MAIR?
- A butterfly on MAIR is the butterfly strategy applied to MAIR (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 MAIR stock trading near $39.06, the strikes shown on this page are snapped to the nearest listed MAIR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MAIR 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 MAIR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 58.20%), 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 MAIR butterfly?
- The breakeven for the MAIR butterfly priced on this page is no defined breakeven on the modeled curve 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 MAIR market-implied 1-standard-deviation expected move is approximately 16.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MAIR?
- Butterflies on MAIR are pinning bets - traders use them when they expect MAIR 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 MAIR implied volatility affect this butterfly?
- Current MAIR ATM IV is 58.20%; IV rank context is unavailable in the current snapshot.