MPX Butterfly Strategy
MPX (Marine Products Corporation), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.
Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sportboat, sport fishing, and jet boat markets worldwide. The company offers Chaparral sterndrive pleasure boats, including SSi Sport Boats, SSX Sport Boats, and the Surf Series; Chaparral outboard pleasure boats, which include OSX Luxury Sportboats, and SSi and SSX outboard models; and Robalo outboard sport fishing boats. It also provides center and dual consoles, and Cayman Bay Boats under the Robalo brand name. The company sells its products to a network of 206 domestic and 92 international independent authorized dealers. Marine Products Corporation was founded in 1965 and is based in Atlanta, Georgia.
MPX (Marine Products Corporation) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $281.7M, a trailing P/E of 41.44, a beta of 1.08 versus the broader market, a 52-week range of 6.83-10.08, average daily share volume of 38K, a public-listing history dating back to 2001, approximately 617 full-time employees. These structural characteristics shape how MPX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places MPX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 41.44 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. MPX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MPX?
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 MPX snapshot
As of May 15, 2026, spot at $8.32, ATM IV 300.30%, IV rank 100.00%, expected move 86.09%. The butterfly on MPX 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 MPX specifically: MPX IV at 300.30% is rich versus its 1-year range, which makes a premium-buying MPX butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 86.09% (roughly $7.16 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 MPX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MPX should anchor to the underlying notional of $8.32 per share and to the trader's directional view on MPX stock.
MPX butterfly setup
The MPX 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 MPX near $8.32, the first option leg uses a $7.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MPX 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 MPX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.90 | N/A |
| Sell 2 | Call | $8.32 | N/A |
| Buy 1 | Call | $8.74 | N/A |
MPX 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.
MPX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MPX. 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 MPX
Butterflies on MPX are pinning bets - traders use them when they expect MPX 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.
MPX thesis for this butterfly
The market-implied 1-standard-deviation range for MPX extends from approximately $1.16 on the downside to $15.48 on the upside. A MPX long call butterfly is a pinning play: it pays maximum at the middle strike if MPX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MPX IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MPX at 300.30%. As a Consumer Cyclical name, MPX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MPX-specific events.
MPX 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. MPX positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MPX alongside the broader basket even when MPX-specific fundamentals are unchanged. Always rebuild the position from current MPX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MPX?
- A butterfly on MPX is the butterfly strategy applied to MPX (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 MPX stock trading near $8.32, the strikes shown on this page are snapped to the nearest listed MPX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MPX 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 MPX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 300.30%), 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 MPX butterfly?
- The breakeven for the MPX 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 MPX market-implied 1-standard-deviation expected move is approximately 86.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MPX?
- Butterflies on MPX are pinning bets - traders use them when they expect MPX 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 MPX implied volatility affect this butterfly?
- MPX ATM IV is at 300.30% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.