MBUU Butterfly Strategy
MBUU (Malibu Boats, Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NASDAQ.
Malibu Boats, Inc. engages in the design, engineering, manufacturing, marketing, and sale of a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is headquartered in Loudon, Tennessee.
MBUU (Malibu Boats, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $523.5M, a beta of 1.13 versus the broader market, a 52-week range of 23.84-39.65, average daily share volume of 348K, a public-listing history dating back to 2014, approximately 2K full-time employees. These structural characteristics shape how MBUU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places MBUU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on MBUU?
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 MBUU snapshot
As of May 15, 2026, spot at $26.43, ATM IV 52.70%, IV rank 33.40%, expected move 15.11%. The butterfly on MBUU 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 MBUU specifically: MBUU IV at 52.70% 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 15.11% (roughly $3.99 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 MBUU expiries trade a higher absolute premium for lower per-day decay. Position sizing on MBUU should anchor to the underlying notional of $26.43 per share and to the trader's directional view on MBUU stock.
MBUU butterfly setup
The MBUU 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 MBUU near $26.43, the first option leg uses a $25.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MBUU 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 MBUU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.11 | N/A |
| Sell 2 | Call | $26.43 | N/A |
| Buy 1 | Call | $27.75 | N/A |
MBUU 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.
MBUU butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MBUU. 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 MBUU
Butterflies on MBUU are pinning bets - traders use them when they expect MBUU 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.
MBUU thesis for this butterfly
The market-implied 1-standard-deviation range for MBUU extends from approximately $22.44 on the downside to $30.42 on the upside. A MBUU long call butterfly is a pinning play: it pays maximum at the middle strike if MBUU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MBUU IV rank near 33.40% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MBUU should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MBUU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MBUU-specific events.
MBUU 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. MBUU positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MBUU alongside the broader basket even when MBUU-specific fundamentals are unchanged. Always rebuild the position from current MBUU chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MBUU?
- A butterfly on MBUU is the butterfly strategy applied to MBUU (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 MBUU stock trading near $26.43, the strikes shown on this page are snapped to the nearest listed MBUU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MBUU 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 MBUU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.70%), 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 MBUU butterfly?
- The breakeven for the MBUU 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 MBUU market-implied 1-standard-deviation expected move is approximately 15.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MBUU?
- Butterflies on MBUU are pinning bets - traders use them when they expect MBUU 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 MBUU implied volatility affect this butterfly?
- MBUU ATM IV is at 52.70% with IV rank near 33.40%, 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.