MNRO Butterfly Strategy
MNRO (Monro Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Monro, Inc. engages in the operation of retail tire and automotive repair stores in the United States. It offers replacement tires and tire related services; automotive undercar repair services; and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. It operates its stores under the 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, and Tire Barn Warehouse brand names. The company was founded in 1957 and is headquartered in Fairport, New York.
MNRO (Monro Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $358.9M, a trailing P/E of 42.86, a beta of 1.05 versus the broader market, a 52-week range of 11.27-23.91, average daily share volume of 1.0M, a public-listing history dating back to 1991, approximately 6K 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 1.05 places MNRO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 42.86 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. 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.
MNRO snapshot
As of August 14, 2026, spot at $11.41, ATM IV 309.50%, IV rank 69.22%, expected move 12.76%. The butterfly on MNRO below is built from the 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 MNRO specifically: MNRO IV at 309.50% 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 12.76% (roughly $1.46 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 MNRO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNRO should anchor to the underlying notional of $11.41 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 at $11.41 on that close, the first option leg uses a $10.84 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 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 MNRO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.84 | N/A |
| Sell 2 | Call | $11.41 | N/A |
| Buy 1 | Call | $11.98 | 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 $9.95 on the downside to $12.87 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 69.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MNRO should anchor more to the directional view and the expected-move geometry. 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 at $11.41 on the most recent close, the strikes shown on this page are snapped to the nearest listed MNRO chain strike and the premiums come straight from that session's 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 309.50%), 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 the 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 MNRO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.76%; 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 309.50% with IV rank near 69.22%, 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.