MOV Butterfly Strategy
MOV (Movado Group, Inc.), in the Consumer Cyclical sector, (Luxury Goods industry), listed on NYSE.
Movado Group, Inc. designs, sources, markets, and distributes watches worldwide. It operates in two segments, Watch and Accessory Brands, and Company Stores. The company offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands comprising Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, Calvin Klein, and KATE SPADE NEW YORK. It also designs, sources, markets, and distributes jewelry and other accessories; and provides after-sales and shipping services. The company’s customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors’ retail stores, and third-party e-commerce retailers. It sells directly to consumers through its e-commerce platforms.
MOV (Movado Group, Inc.) trades in the Consumer Cyclical sector, specifically Luxury Goods, with a market capitalization of approximately $578.0M, a trailing P/E of 26.09, a beta of 0.96 versus the broader market, a 52-week range of 15.67-40.5, average daily share volume of 216K, a public-listing history dating back to 1993, approximately 1K full-time employees. These structural characteristics shape how MOV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places MOV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MOV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MOV?
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.
MOV snapshot
As of August 14, 2026, spot at $35.98, ATM IV 50.30%, IV rank 35.71%, expected move 14.42%. The butterfly on MOV 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 MOV specifically: MOV IV at 50.30% 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 14.42% (roughly $5.19 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 MOV expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOV should anchor to the underlying notional of $35.98 per share and to the trader's directional view on MOV stock.
MOV butterfly setup
The MOV 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 MOV at $35.98 on that close, the first option leg uses a $34.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOV 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 MOV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $34.18 | N/A |
| Sell 2 | Call | $35.98 | N/A |
| Buy 1 | Call | $37.78 | N/A |
MOV 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.
MOV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MOV. 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 MOV
Butterflies on MOV are pinning bets - traders use them when they expect MOV 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.
MOV thesis for this butterfly
The market-implied 1-standard-deviation range for MOV extends from approximately $30.79 on the downside to $41.17 on the upside. A MOV long call butterfly is a pinning play: it pays maximum at the middle strike if MOV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MOV IV rank near 35.71% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MOV should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MOV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOV-specific events.
MOV 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. MOV positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MOV alongside the broader basket even when MOV-specific fundamentals are unchanged. Always rebuild the position from current MOV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MOV?
- A butterfly on MOV is the butterfly strategy applied to MOV (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 MOV stock at $35.98 on the most recent close, the strikes shown on this page are snapped to the nearest listed MOV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MOV 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 MOV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.30%), 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 MOV butterfly?
- The breakeven for the MOV 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 MOV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MOV?
- Butterflies on MOV are pinning bets - traders use them when they expect MOV 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 MOV implied volatility affect this butterfly?
- MOV ATM IV is at 50.30% with IV rank near 35.71%, 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.