How are MHK 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 MHK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is $578.45 per contract and the computed maximum loss is -$410.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MHK butterfly?

The breakeven for the MHK butterfly priced on this page is roughly $134.10 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 MHK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MHK implied volatility affect this butterfly?

MHK ATM IV is at 35.50% with IV rank near 18.81%, 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.

MHK Butterfly Strategy

MHK (Mohawk Industries, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NYSE.

Mohawk Industries, Inc. is a global leader specializing in the manufacturing, sourcing, distribution, and marketing of diverse flooring solutions. The company serves both residential and commercial clients, addressing needs for new construction and renovation projects across the United States, Europe, Russia, and other international territories. Its operations are structured into three primary segments: 1. Global Ceramic: This division offers a wide range of ceramic, porcelain, and natural stone tiles, and also procures, markets, and distributes other related tile products. Key brands within this segment include American Olean, Daltile, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, and Ragno. 2. Flooring North America (Flooring NA): This segment presents an extensive collection of floor covering products, available in various colors, textures, and patterns.

MHK (Mohawk Industries, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $8.34B, a trailing P/E of 17.90, a beta of 1.18 versus the broader market, a 52-week range of 92.99-143.13, average daily share volume of 885K, a public-listing history dating back to 1992, approximately 41K full-time employees. These structural characteristics shape how MHK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places MHK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on MHK?

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.

MHK snapshot

As of August 14, 2026, spot at $139.41, ATM IV 35.50%, IV rank 18.81%, expected move 10.18%. The butterfly on MHK 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 MHK specifically: MHK IV at 35.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a MHK butterfly, with a market-implied 1-standard-deviation move of approximately 10.18% (roughly $14.19 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 MHK expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHK should anchor to the underlying notional of $139.41 per share and to the trader's directional view on MHK stock.

MHK butterfly setup

The MHK 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 MHK at $139.41 on that close, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MHK 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 MHK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$12.30
Sell 2	Call	$140.00	$6.05
Buy 1	Call	$145.00	$3.90

MHK butterfly risk and reward

Net Premium / Debit: -$410.00
Max Profit (per contract): $578.45
Max Loss (per contract): -$410.00
Breakeven(s): $134.10
Risk / Reward Ratio: 1.411

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.

MHK butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MHK. 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%	-$410.00
$30.83	-77.9%	-$410.00
$61.66	-55.8%	-$410.00
$92.48	-33.7%	-$410.00
$123.30	-11.6%	-$410.00
$154.13	+10.6%	+$90.00
$184.95	+32.7%	+$90.00
$215.77	+54.8%	+$90.00
$246.60	+76.9%	+$90.00
$277.42	+99.0%	+$90.00

When traders use butterfly on MHK

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

MHK thesis for this butterfly

The market-implied 1-standard-deviation range for MHK extends from approximately $125.22 on the downside to $153.60 on the upside. A MHK long call butterfly is a pinning play: it pays maximum at the middle strike if MHK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MHK IV rank near 18.81% 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 MHK at 35.50%. As a Consumer Cyclical name, MHK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MHK-specific events.

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

Frequently asked questions

What is a butterfly on MHK?: A butterfly on MHK is the butterfly strategy applied to MHK (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 MHK stock at $139.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MHK chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MHK 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 MHK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is $578.45 per contract and the computed maximum loss is -$410.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MHK butterfly?: The breakeven for the MHK butterfly priced on this page is roughly $134.10 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 MHK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MHK?: Butterflies on MHK are pinning bets - traders use them when they expect MHK 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 MHK implied volatility affect this butterfly?: MHK ATM IV is at 35.50% with IV rank near 18.81%, 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.