How are MHO 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 MHO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $603.91 per contract and the computed maximum loss is -$377.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MHO butterfly?

The breakeven for the MHO butterfly priced on this page is roughly $148.78 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 MHO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MHO implied volatility affect this butterfly?

MHO ATM IV is at 32.60% with IV rank near 0.79%, 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.

MHO Butterfly Strategy

MHO (M/I Homes, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.

M/I Homes, Inc. (MHO), along with its affiliated companies, constructs single-family residences across a broad geographical area, including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. Its operations are divided into three primary segments: Northern Homebuilding, Southern Homebuilding, and Financial Services. Under the M/I Homes brand, the company engages in the entire process of home development, from conceptual design and construction to marketing and sales. It caters to a diverse clientele, encompassing first-time purchasers, millennials, those upgrading their homes, empty-nesters, and luxury market consumers, offering both detached single-family houses and attached townhouses. Beyond building, M/I Homes acquires raw land, transforming it into ready-to-build lots. These developed parcels are then utilized for its own single-family home construction projects or sold to external parties.

MHO (M/I Homes, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $3.82B, a trailing P/E of 12.22, a beta of 1.61 versus the broader market, a 52-week range of 116.78-163.66, average daily share volume of 243K, a public-listing history dating back to 1993, approximately 2K full-time employees. These structural characteristics shape how MHO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.61 indicates MHO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MHO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on MHO?

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.

MHO snapshot

As of August 14, 2026, spot at $152.51, ATM IV 32.60%, IV rank 0.79%, expected move 9.35%. The butterfly on MHO 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 MHO specifically: MHO IV at 32.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a MHO butterfly, with a market-implied 1-standard-deviation move of approximately 9.35% (roughly $14.25 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 MHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHO should anchor to the underlying notional of $152.51 per share and to the trader's directional view on MHO stock.

MHO butterfly setup

The MHO 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 MHO at $152.51 on that close, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MHO 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 MHO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$145.00	$11.90
Sell 2	Call	$155.00	$5.85
Buy 1	Call	$160.00	$3.58

MHO butterfly risk and reward

Net Premium / Debit: -$377.50
Max Profit (per contract): $603.91
Max Loss (per contract): -$377.50
Breakeven(s): $148.78
Risk / Reward Ratio: 1.600

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.

MHO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MHO. 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%	-$377.50
$33.73	-77.9%	-$377.50
$67.45	-55.8%	-$377.50
$101.17	-33.7%	-$377.50
$134.89	-11.6%	-$377.50
$168.61	+10.6%	+$122.50
$202.33	+32.7%	+$122.50
$236.05	+54.8%	+$122.50
$269.77	+76.9%	+$122.50
$303.49	+99.0%	+$122.50

When traders use butterfly on MHO

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

MHO thesis for this butterfly

The market-implied 1-standard-deviation range for MHO extends from approximately $138.26 on the downside to $166.76 on the upside. A MHO long call butterfly is a pinning play: it pays maximum at the middle strike if MHO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MHO IV rank near 0.79% 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 MHO at 32.60%. As a Consumer Cyclical name, MHO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MHO-specific events.

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

Frequently asked questions

What is a butterfly on MHO?: A butterfly on MHO is the butterfly strategy applied to MHO (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 MHO stock at $152.51 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MHO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MHO 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 MHO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $603.91 per contract and the computed maximum loss is -$377.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MHO butterfly?: The breakeven for the MHO butterfly priced on this page is roughly $148.78 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 MHO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MHO?: Butterflies on MHO are pinning bets - traders use them when they expect MHO 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 MHO implied volatility affect this butterfly?: MHO ATM IV is at 32.60% with IV rank near 0.79%, 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.