How are MCB 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 MCB butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.60%), the computed maximum profit is $288.42 per contract and the computed maximum loss is -$177.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MCB butterfly?

The breakeven for the MCB butterfly priced on this page is roughly $91.78 and $98.23 at expiration, derived from the August 14, 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 MCB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MCB implied volatility affect this butterfly?

MCB ATM IV is at 27.60% with IV rank near 2.39%, 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.

MCB Butterfly Strategy

MCB (Metropolitan Bank Holding Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Metropolitan Bank Holding Corp. acts as the parent organization for Metropolitan Commercial Bank, which provides a wide array of business, commercial, and personal banking offerings. This institution serves a diverse clientele, including small and mid-sized enterprises, public sector bodies, and individual clients across the greater New York metropolitan region. The bank’s deposit products feature standard checking, savings, term deposit, and money market accounts, along with certificates of deposit. It also extends an extensive portfolio of credit facilities, encompassing financing for commercial properties, construction ventures, multi-family dwellings, and one-to-four-family residential units. Additional lending options include commercial and industrial loans, consumer credit, funds for property acquisition and renovation, and solutions for refinancing or extracting borrower equity. The institution further supports clients with loans on owner-occupied real estate, working capital lines of credit, trade finance, letters of credit, and conventional term loans.

MCB (Metropolitan Bank Holding Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.17B, a trailing P/E of 12.46, a beta of 0.99 versus the broader market, a 52-week range of 64.66-102.043, average daily share volume of 150K, a public-listing history dating back to 2017, approximately 326 full-time employees. These structural characteristics shape how MCB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.99 places MCB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MCB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on MCB?

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.

MCB snapshot

As of August 14, 2026, spot at $93.92, ATM IV 27.60%, IV rank 2.39%, expected move 7.91%. The butterfly on MCB below is built from the August 14, 2026 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 MCB specifically: MCB IV at 27.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a MCB butterfly, with a market-implied 1-standard-deviation move of approximately 7.91% (roughly $7.43 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 MCB expiries trade a higher absolute premium for lower per-day decay. Position sizing on MCB should anchor to the underlying notional of $93.92 per share and to the trader's directional view on MCB stock.

MCB butterfly setup

The MCB butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MCB at $93.92 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MCB 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 MCB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$6.25
Sell 2	Call	$95.00	$2.75
Buy 1	Call	$100.00	$1.03

MCB butterfly risk and reward

Net Premium / Debit: -$177.50
Max Profit (per contract): $288.42
Max Loss (per contract): -$177.50
Breakeven(s): $91.78, $98.23
Risk / Reward Ratio: 1.625

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.

MCB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MCB. 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%	-$177.50
$20.78	-77.9%	-$177.50
$41.54	-55.8%	-$177.50
$62.31	-33.7%	-$177.50
$83.07	-11.6%	-$177.50
$103.84	+10.6%	-$177.50
$124.60	+32.7%	-$177.50
$145.37	+54.8%	-$177.50
$166.13	+76.9%	-$177.50
$186.90	+99.0%	-$177.50

When traders use butterfly on MCB

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

MCB thesis for this butterfly

The market-implied 1-standard-deviation range for MCB extends from approximately $86.49 on the downside to $101.35 on the upside. A MCB long call butterfly is a pinning play: it pays maximum at the middle strike if MCB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MCB IV rank near 2.39% 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 MCB at 27.60%. As a Financial Services name, MCB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MCB-specific events.

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

Frequently asked questions

What is a butterfly on MCB?: A butterfly on MCB is the butterfly strategy applied to MCB (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 MCB stock at $93.92 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MCB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MCB 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 MCB butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.60%), the computed maximum profit is $288.42 per contract and the computed maximum loss is -$177.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MCB butterfly?: The breakeven for the MCB butterfly priced on this page is roughly $91.78 and $98.23 at expiration, derived from the August 14, 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 MCB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MCB?: Butterflies on MCB are pinning bets - traders use them when they expect MCB 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 MCB implied volatility affect this butterfly?: MCB ATM IV is at 27.60% with IV rank near 2.39%, 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.