MRX Butterfly Strategy
MRX (Marex Group Limited), in the Financial Services sector, (Financial - Capital Markets industry), listed on NASDAQ.
Marex Group plc, a financial services platform company, provides liquidity, market access, and infrastructure services to clients in the commodity and financial markets in the United Kingdom, the United States, and internationally. It operates through Clearing, Agency and Execution, Market Making, and Hedging and Investment Solutions segments. The company offers execution and clearing services in metals, agricultural products, energy and fixed income, financial securities, digital assets, and equity futures and options; liquidity, execution, and risk management solutions to financial markets. It also provides liquidity to clients in the OTC energy markets; market data, analytics, and market commentary; energy services, including gas, power, environmental, and crude oil markets; and market-making services across commodities markets, such as metals, agricultural products, and energy markets. In addition, the company offers OTC traded hedging and customized OTC derivatives solutions; and risk management solutions across a spectrum of markets, including agriculture, currency, and interest rate markets for trading houses, producers and consumers, and banks and distributors. Further, it engages in the structured notes business, which allows investors to build structured notes across asset classes, including commodities, equities, foreign exchange, and fixed-income products for private banks, independent asset managers, pension funds, and corporates; and a portfolio of structured Notes, including auto-callable, fixed, stability, and credit-linked notes.
MRX (Marex Group Limited) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $5.12B, a trailing P/E of 16.47, a beta of -0.10 versus the broader market, a 52-week range of 27.91-71.621, average daily share volume of 998K, a public-listing history dating back to 2024, approximately 3K full-time employees. These structural characteristics shape how MRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.10 indicates MRX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. MRX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MRX?
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.
MRX snapshot
As of August 14, 2026, spot at $70.78, ATM IV 44.90%, IV rank 20.90%, expected move 12.87%. The butterfly on MRX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 154-day expiry.
Why this butterfly structure on MRX specifically: MRX IV at 44.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a MRX butterfly, with a market-implied 1-standard-deviation move of approximately 12.87% (roughly $9.11 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MRX should anchor to the underlying notional of $70.78 per share and to the trader's directional view on MRX stock.
MRX butterfly setup
The MRX butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MRX at $70.78 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MRX chain at a 154-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 MRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $65.00 | $12.50 |
| Sell 2 | Call | $70.00 | $9.40 |
| Buy 1 | Call | $75.00 | $7.30 |
MRX butterfly risk and reward
- Net Premium / Debit
- -$100.00
- Max Profit (per contract)
- $371.80
- Max Loss (per contract)
- -$100.00
- Breakeven(s)
- $66.00, $74.00
- Risk / Reward Ratio
- 3.718
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.
MRX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MRX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$100.00 |
| $15.66 | -77.9% | -$100.00 |
| $31.31 | -55.8% | -$100.00 |
| $46.96 | -33.7% | -$100.00 |
| $62.60 | -11.5% | -$100.00 |
| $78.25 | +10.6% | -$100.00 |
| $93.90 | +32.7% | -$100.00 |
| $109.55 | +54.8% | -$100.00 |
| $125.20 | +76.9% | -$100.00 |
| $140.85 | +99.0% | -$100.00 |
When traders use butterfly on MRX
Butterflies on MRX are pinning bets - traders use them when they expect MRX 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.
MRX thesis for this butterfly
The market-implied 1-standard-deviation range for MRX extends from approximately $61.67 on the downside to $79.89 on the upside. A MRX long call butterfly is a pinning play: it pays maximum at the middle strike if MRX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MRX IV rank near 20.90% 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 MRX at 44.90%. As a Financial Services name, MRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MRX-specific events.
MRX 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. MRX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MRX alongside the broader basket even when MRX-specific fundamentals are unchanged. Always rebuild the position from current MRX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MRX?
- A butterfly on MRX is the butterfly strategy applied to MRX (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 MRX stock at $70.78 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MRX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MRX 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 MRX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.90%), the computed maximum profit is $371.80 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MRX butterfly?
- The breakeven for the MRX butterfly priced on this page is roughly $66.00 and $74.00 at expiration, derived from the August 14, 2026 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 MRX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MRX?
- Butterflies on MRX are pinning bets - traders use them when they expect MRX 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 MRX implied volatility affect this butterfly?
- MRX ATM IV is at 44.90% with IV rank near 20.90%, 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.