How are MTW 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 MTW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 58.80%), the computed maximum profit is $82.50 per contract and the computed maximum loss is -$17.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MTW butterfly?

The breakeven for the MTW butterfly priced on this page is roughly $12.83 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 MTW market-implied 1-standard-deviation expected move is approximately 16.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MTW implied volatility affect this butterfly?

MTW ATM IV is at 58.80% with IV rank near 25.35%, 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.

MTW Butterfly Strategy

MTW (The Manitowoc Company, Inc.), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.

The Manitowoc Company, Inc. provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East, and the Asia Pacific. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile hydraulic cranes under the Grove, Shuttlelift, and National Crane brands; and hydraulic boom trucks under the National Crane brand. The company also provides crane product parts and services; and crane rebuilding, remanufacturing, and training services. Its crane products are used in various applications, including energy production/distribution and utilities; petrochemical and industrial projects; infrastructure, such as road, bridge, and airport construction; and commercial and high-rise residential construction. The company serves a range of customers, including dealers, rental companies, contractors, and government entities in the petrochemical, industrial, commercial construction, power and utilities, infrastructure, and residential construction end markets. The Manitowoc Company, Inc. was founded in 1902 and is headquartered in Milwaukee, Wisconsin.

MTW (The Manitowoc Company, Inc.) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $455.0M, a trailing P/E of 60.25, a beta of 1.81 versus the broader market, a 52-week range of 9.09-15.56, average daily share volume of 238K, a public-listing history dating back to 1990, approximately 5K full-time employees. These structural characteristics shape how MTW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.81 indicates MTW 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 60.25 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 MTW?

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 MTW snapshot

As of May 15, 2026, spot at $12.23, ATM IV 58.80%, IV rank 25.35%, expected move 16.86%. The butterfly on MTW 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 126-day expiry.

Why this butterfly structure on MTW specifically: MTW IV at 58.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a MTW butterfly, with a market-implied 1-standard-deviation move of approximately 16.86% (roughly $2.06 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MTW expiries trade a higher absolute premium for lower per-day decay. Position sizing on MTW should anchor to the underlying notional of $12.23 per share and to the trader's directional view on MTW stock.

MTW butterfly setup

The MTW 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 MTW near $12.23, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MTW chain at a 126-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 MTW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$12.00	$1.90
Sell 2	Call	$12.00	$1.90
Buy 1	Call	$13.00	$1.08

MTW butterfly risk and reward

Net Premium / Debit: +$82.50
Max Profit (per contract): $82.50
Max Loss (per contract): -$17.50
Breakeven(s): $12.83
Risk / Reward Ratio: 4.714

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.

MTW butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MTW. 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	-99.9%	+$82.50
$2.71	-77.8%	+$82.50
$5.42	-55.7%	+$82.50
$8.12	-33.6%	+$82.50
$10.82	-11.5%	+$82.50
$13.53	+10.6%	-$17.50
$16.23	+32.7%	-$17.50
$18.93	+54.8%	-$17.50
$21.63	+76.9%	-$17.50
$24.34	+99.0%	-$17.50

When traders use butterfly on MTW

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

MTW thesis for this butterfly

The market-implied 1-standard-deviation range for MTW extends from approximately $10.17 on the downside to $14.29 on the upside. A MTW long call butterfly is a pinning play: it pays maximum at the middle strike if MTW settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MTW IV rank near 25.35% 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 MTW at 58.80%. As a Industrials name, MTW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MTW-specific events.

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

Frequently asked questions

What is a butterfly on MTW?: A butterfly on MTW is the butterfly strategy applied to MTW (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 MTW stock trading near $12.23, the strikes shown on this page are snapped to the nearest listed MTW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MTW 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 MTW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 58.80%), the computed maximum profit is $82.50 per contract and the computed maximum loss is -$17.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MTW butterfly?: The breakeven for the MTW butterfly priced on this page is roughly $12.83 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 MTW market-implied 1-standard-deviation expected move is approximately 16.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MTW?: Butterflies on MTW are pinning bets - traders use them when they expect MTW 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 MTW implied volatility affect this butterfly?: MTW ATM IV is at 58.80% with IV rank near 25.35%, 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.