How are MOD 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 MOD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 79.50%), the computed maximum profit is $1,331.36 per contract and the computed maximum loss is -$590.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MOD butterfly?

The breakeven for the MOD butterfly priced on this page is roughly $255.90 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 MOD market-implied 1-standard-deviation expected move is approximately 22.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MOD implied volatility affect this butterfly?

MOD ATM IV is at 79.50% with IV rank near 63.22%, 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.

MOD Butterfly Strategy

MOD (Modine Manufacturing Company), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.

Modine Manufacturing Company specializes in delivering advanced thermal management systems and heat exchange components, primarily catering to original equipment manufacturers (OEMs) in both on- and off-highway vehicular markets. The company's operations are structured into two main segments: Climate Solutions and Performance Technologies. Its extensive product portfolio encompasses a wide array of heating, ventilation, and air conditioning (HVAC) solutions. This includes various heating units such as gas-fired, hydronic, electric, and oil-fired models, alongside indoor and outdoor duct furnaces, infrared units, and perimeter heating offerings like commercial fin-tube radiation, cabinet unit heaters, and convectors. Modine also supplies roof-mounted direct- and indirect-fired makeup air units, unit ventilators, single packaged vertical units, and precision air conditioning systems designed for data centers. Further HVAC offerings feature air handler units, fan walls, chillers, ceiling cassettes, hybrid fan coils, and diverse condensers and condensing units.

MOD (Modine Manufacturing Company) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $13.52B, a trailing P/E of 113.49, a beta of 1.66 versus the broader market, a 52-week range of 86.48-323.25, average daily share volume of 1.3M, a public-listing history dating back to 1982, approximately 11K full-time employees. These structural characteristics shape how MOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.66 indicates MOD 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 113.49 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 MOD?

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 MOD snapshot

As of June 30, 2026, spot at $266.76, ATM IV 79.50%, IV rank 63.22%, expected move 22.79%. The butterfly on MOD 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 17-day expiry.

Why this butterfly structure on MOD specifically: MOD IV at 79.50% 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 22.79% (roughly $60.80 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOD should anchor to the underlying notional of $266.76 per share and to the trader's directional view on MOD stock.

MOD butterfly setup

The MOD 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 MOD near $266.76, the first option leg uses a $250.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOD chain at a 17-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 MOD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$250.00	$27.50
Sell 2	Call	$270.00	$17.30
Buy 1	Call	$280.00	$13.00

MOD butterfly risk and reward

Net Premium / Debit: -$590.00
Max Profit (per contract): $1,331.36
Max Loss (per contract): -$590.00
Breakeven(s): $255.90
Risk / Reward Ratio: 2.257

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.

MOD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MOD. 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%	-$590.00
$58.99	-77.9%	-$590.00
$117.97	-55.8%	-$590.00
$176.95	-33.7%	-$590.00
$235.93	-11.6%	-$590.00
$294.92	+10.6%	+$410.00
$353.90	+32.7%	+$410.00
$412.88	+54.8%	+$410.00
$471.86	+76.9%	+$410.00
$530.84	+99.0%	+$410.00

When traders use butterfly on MOD

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

MOD thesis for this butterfly

The market-implied 1-standard-deviation range for MOD extends from approximately $205.96 on the downside to $327.56 on the upside. A MOD long call butterfly is a pinning play: it pays maximum at the middle strike if MOD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MOD IV rank near 63.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MOD should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOD-specific events.

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

Frequently asked questions

What is a butterfly on MOD?: A butterfly on MOD is the butterfly strategy applied to MOD (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 MOD stock trading near $266.76, the strikes shown on this page are snapped to the nearest listed MOD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MOD 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 MOD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 79.50%), the computed maximum profit is $1,331.36 per contract and the computed maximum loss is -$590.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MOD butterfly?: The breakeven for the MOD butterfly priced on this page is roughly $255.90 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 MOD market-implied 1-standard-deviation expected move is approximately 22.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MOD?: Butterflies on MOD are pinning bets - traders use them when they expect MOD 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 MOD implied volatility affect this butterfly?: MOD ATM IV is at 79.50% with IV rank near 63.22%, 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.