MCFT Butterfly Strategy
MCFT (MasterCraft Boat Holdings, Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NASDAQ.
MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through three segments: MasterCraft, NauticStar, and Crest. The MasterCraft segment produces recreational performance sport boats and luxury day boats under the MasterCraft and Aviara brands, which are used for water skiing, wakeboarding, and wake surfing, as well as general recreational boating. The NauticStar segment offers boats that are primarily used for saltwater fishing and general recreational boating. The Crest segment produces pontoon boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts.
MCFT (MasterCraft Boat Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $405.2M, a trailing P/E of 36.84, a beta of 1.09 versus the broader market, a 52-week range of 16.46-28.44, average daily share volume of 149K, a public-listing history dating back to 2015, approximately 920 full-time employees. These structural characteristics shape how MCFT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places MCFT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.84 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 MCFT?
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 MCFT snapshot
As of May 15, 2026, spot at $23.82, ATM IV 48.20%, IV rank 10.44%, expected move 13.82%. The butterfly on MCFT 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 MCFT specifically: MCFT IV at 48.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a MCFT butterfly, with a market-implied 1-standard-deviation move of approximately 13.82% (roughly $3.29 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 MCFT expiries trade a higher absolute premium for lower per-day decay. Position sizing on MCFT should anchor to the underlying notional of $23.82 per share and to the trader's directional view on MCFT stock.
MCFT butterfly setup
The MCFT 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 MCFT near $23.82, the first option leg uses a $22.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MCFT 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 MCFT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $22.63 | N/A |
| Sell 2 | Call | $23.82 | N/A |
| Buy 1 | Call | $25.01 | N/A |
MCFT 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.
MCFT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MCFT. 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 MCFT
Butterflies on MCFT are pinning bets - traders use them when they expect MCFT 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.
MCFT thesis for this butterfly
The market-implied 1-standard-deviation range for MCFT extends from approximately $20.53 on the downside to $27.11 on the upside. A MCFT long call butterfly is a pinning play: it pays maximum at the middle strike if MCFT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MCFT IV rank near 10.44% 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 MCFT at 48.20%. As a Consumer Cyclical name, MCFT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MCFT-specific events.
MCFT 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. MCFT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MCFT alongside the broader basket even when MCFT-specific fundamentals are unchanged. Always rebuild the position from current MCFT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MCFT?
- A butterfly on MCFT is the butterfly strategy applied to MCFT (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 MCFT stock trading near $23.82, the strikes shown on this page are snapped to the nearest listed MCFT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MCFT 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 MCFT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 48.20%), 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 MCFT butterfly?
- The breakeven for the MCFT 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 MCFT market-implied 1-standard-deviation expected move is approximately 13.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MCFT?
- Butterflies on MCFT are pinning bets - traders use them when they expect MCFT 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 MCFT implied volatility affect this butterfly?
- MCFT ATM IV is at 48.20% with IV rank near 10.44%, 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.