MMYT Butterfly Strategy
MMYT (MakeMyTrip Limited), in the Consumer Cyclical sector, (Travel Services industry), listed on NASDAQ.
MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels; packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents' network, as well as mobile service platform. As of March 31, 2022, it had approximately 125 franchisee-owned travel stores. The company serves leisure and corporate travelers.
MMYT (MakeMyTrip Limited) trades in the Consumer Cyclical sector, specifically Travel Services, with a market capitalization of approximately $4.09B, a trailing P/E of 74.25, a beta of 1.03 versus the broader market, a 52-week range of 32.67-108.5, average daily share volume of 1.5M, a public-listing history dating back to 2010, approximately 5K full-time employees. These structural characteristics shape how MMYT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places MMYT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 74.25 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 MMYT?
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 MMYT snapshot
As of May 15, 2026, spot at $42.73, ATM IV 67.20%, IV rank 20.05%, expected move 19.27%. The butterfly on MMYT 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 MMYT specifically: MMYT IV at 67.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a MMYT butterfly, with a market-implied 1-standard-deviation move of approximately 19.27% (roughly $8.23 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 MMYT expiries trade a higher absolute premium for lower per-day decay. Position sizing on MMYT should anchor to the underlying notional of $42.73 per share and to the trader's directional view on MMYT stock.
MMYT butterfly setup
The MMYT 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 MMYT near $42.73, the first option leg uses a $40.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MMYT 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 MMYT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $40.59 | N/A |
| Sell 2 | Call | $42.73 | N/A |
| Buy 1 | Call | $44.87 | N/A |
MMYT 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.
MMYT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MMYT. 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 MMYT
Butterflies on MMYT are pinning bets - traders use them when they expect MMYT 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.
MMYT thesis for this butterfly
The market-implied 1-standard-deviation range for MMYT extends from approximately $34.50 on the downside to $50.96 on the upside. A MMYT long call butterfly is a pinning play: it pays maximum at the middle strike if MMYT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MMYT IV rank near 20.05% 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 MMYT at 67.20%. As a Consumer Cyclical name, MMYT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MMYT-specific events.
MMYT 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. MMYT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MMYT alongside the broader basket even when MMYT-specific fundamentals are unchanged. Always rebuild the position from current MMYT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MMYT?
- A butterfly on MMYT is the butterfly strategy applied to MMYT (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 MMYT stock trading near $42.73, the strikes shown on this page are snapped to the nearest listed MMYT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MMYT 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 MMYT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 67.20%), 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 MMYT butterfly?
- The breakeven for the MMYT 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 MMYT market-implied 1-standard-deviation expected move is approximately 19.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MMYT?
- Butterflies on MMYT are pinning bets - traders use them when they expect MMYT 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 MMYT implied volatility affect this butterfly?
- MMYT ATM IV is at 67.20% with IV rank near 20.05%, 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.