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 end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $544.31 per contract and the computed maximum loss is -$425.00 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 $125.75 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 MHO market-implied 1-standard-deviation expected move is approximately 11.53%; 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 40.20% with IV rank near 36.28%, 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.

MHO Butterfly Strategy

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

M/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, and luxury buyers under the M/I Homes brand name. The company also purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. In addition, it originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. The company was formerly known as M/I Schottenstein Homes, Inc. and changed its name to M/I Homes, Inc. in January 2004.

MHO (M/I Homes, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $3.27B, a trailing P/E of 9.19, a beta of 1.65 versus the broader market, a 52-week range of 103.52-158.92, average daily share volume of 244K, 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 1.65 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. The trailing P/E of 9.19 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

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.

Current MHO snapshot

As of May 15, 2026, spot at $121.52, ATM IV 40.20%, IV rank 36.28%, expected move 11.53%. The butterfly on MHO 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 MHO specifically: MHO IV at 40.20% 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 11.53% (roughly $14.01 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 MHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHO should anchor to the underlying notional of $121.52 per share and to the trader's directional view on MHO stock.

MHO butterfly setup

The MHO 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 MHO near $121.52, the first option leg uses a $115.00 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 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 MHO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$115.00	$11.15
Sell 2	Call	$120.00	$7.70
Buy 1	Call	$130.00	$3.50

MHO butterfly risk and reward

Net Premium / Debit: +$75.00
Max Profit (per contract): $544.31
Max Loss (per contract): -$425.00
Breakeven(s): $125.75
Risk / Reward Ratio: 1.281

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$75.00
$26.88	-77.9%	+$75.00
$53.75	-55.8%	+$75.00
$80.61	-33.7%	+$75.00
$107.48	-11.6%	+$75.00
$134.35	+10.6%	-$425.00
$161.22	+32.7%	-$425.00
$188.08	+54.8%	-$425.00
$214.95	+76.9%	-$425.00
$241.82	+99.0%	-$425.00

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 $107.51 on the downside to $135.53 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 36.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MHO should anchor more to the directional view and the expected-move geometry. 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 trading near $121.52, the strikes shown on this page are snapped to the nearest listed MHO chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $544.31 per contract and the computed maximum loss is -$425.00 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 $125.75 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 MHO market-implied 1-standard-deviation expected move is approximately 11.53%; 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 40.20% with IV rank near 36.28%, 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.