MNRO Butterfly Strategy
MNRO (Monro, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services; routine maintenance services on passenger cars, light trucks, and vans; products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. The company also provides automotive undercar repair services, including tire replacement sales, and tire related service. The company operates its stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, Tire Barn Warehouse, and Free Service Tire & Auto Centers. As of March 26, 2022, it operated 1,304 company-operated stores, 76 Car-X franchised locations, seven wholesale locations, and three retread facilities in 32 states.
MNRO (Monro, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $476.7M, a beta of 1.07 versus the broader market, a 52-week range of 12.24-23.91, average daily share volume of 799K, a public-listing history dating back to 1991, approximately 8K full-time employees. These structural characteristics shape how MNRO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places MNRO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MNRO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MNRO?
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 MNRO snapshot
As of May 15, 2026, spot at $15.68, ATM IV 91.20%, IV rank 16.97%, expected move 26.15%. The butterfly on MNRO 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 MNRO specifically: MNRO IV at 91.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a MNRO butterfly, with a market-implied 1-standard-deviation move of approximately 26.15% (roughly $4.10 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 MNRO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNRO should anchor to the underlying notional of $15.68 per share and to the trader's directional view on MNRO stock.
MNRO butterfly setup
The MNRO 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 MNRO near $15.68, the first option leg uses a $14.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MNRO 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 MNRO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.90 | N/A |
| Sell 2 | Call | $15.68 | N/A |
| Buy 1 | Call | $16.46 | N/A |
MNRO 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.
MNRO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MNRO. 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 MNRO
Butterflies on MNRO are pinning bets - traders use them when they expect MNRO 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.
MNRO thesis for this butterfly
The market-implied 1-standard-deviation range for MNRO extends from approximately $11.58 on the downside to $19.78 on the upside. A MNRO long call butterfly is a pinning play: it pays maximum at the middle strike if MNRO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MNRO IV rank near 16.97% 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 MNRO at 91.20%. As a Consumer Cyclical name, MNRO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MNRO-specific events.
MNRO 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. MNRO positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MNRO alongside the broader basket even when MNRO-specific fundamentals are unchanged. Always rebuild the position from current MNRO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MNRO?
- A butterfly on MNRO is the butterfly strategy applied to MNRO (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 MNRO stock trading near $15.68, the strikes shown on this page are snapped to the nearest listed MNRO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MNRO 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 MNRO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 91.20%), 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 MNRO butterfly?
- The breakeven for the MNRO 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 MNRO market-implied 1-standard-deviation expected move is approximately 26.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MNRO?
- Butterflies on MNRO are pinning bets - traders use them when they expect MNRO 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 MNRO implied volatility affect this butterfly?
- MNRO ATM IV is at 91.20% with IV rank near 16.97%, 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.