NWPX Butterfly Strategy
NWPX (NWPX Infrastructure, Inc.), in the Industrials sector, (Manufacturing - Metal Fabrication industry), listed on NASDAQ.
NWPX Infrastructure, Inc., together with its subsidiaries, engages in the manufacture and sale of water-related infrastructure products in North America and Canada. It operates through two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment provides large-diameter and high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. In addition, this segment makes products for industrial plant piping systems and certain structural applications. The Precast segment offers stormwater and wastewater technology products, precast, and reinforced concrete products, including reinforced concrete pipe, manholes, box culverts, vaults and catch basins, pump lift stations, oil water separators, biofiltration units, steel casing pipes, and bar-wrapped concrete cylinder pipes, as well as pipeline system joints, fittings, specialized components, and other environmental and engineered solutions.
NWPX (NWPX Infrastructure, Inc.) trades in the Industrials sector, specifically Manufacturing - Metal Fabrication, with a market capitalization of approximately $1.09B, a trailing P/E of 25.89, a beta of 1.06 versus the broader market, a 52-week range of 37.99-114.27, average daily share volume of 134K, a public-listing history dating back to 1995, approximately 1K full-time employees. These structural characteristics shape how NWPX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places NWPX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on NWPX?
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 NWPX snapshot
As of May 15, 2026, spot at $110.25, ATM IV 41.90%, IV rank 19.60%, expected move 12.01%. The butterfly on NWPX 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 NWPX specifically: NWPX IV at 41.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a NWPX butterfly, with a market-implied 1-standard-deviation move of approximately 12.01% (roughly $13.24 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 NWPX expiries trade a higher absolute premium for lower per-day decay. Position sizing on NWPX should anchor to the underlying notional of $110.25 per share and to the trader's directional view on NWPX stock.
NWPX butterfly setup
The NWPX 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 NWPX near $110.25, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NWPX 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 NWPX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $105.00 | $9.50 |
| Sell 2 | Call | $110.00 | $6.75 |
| Buy 1 | Call | $115.00 | $4.25 |
NWPX butterfly risk and reward
- Net Premium / Debit
- -$25.00
- Max Profit (per contract)
- $445.10
- Max Loss (per contract)
- -$25.00
- Breakeven(s)
- $105.19, $114.92
- Risk / Reward Ratio
- 17.804
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.
NWPX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NWPX. 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% | -$25.00 |
| $24.39 | -77.9% | -$25.00 |
| $48.76 | -55.8% | -$25.00 |
| $73.14 | -33.7% | -$25.00 |
| $97.51 | -11.6% | -$25.00 |
| $121.89 | +10.6% | -$25.00 |
| $146.26 | +32.7% | -$25.00 |
| $170.64 | +54.8% | -$25.00 |
| $195.02 | +76.9% | -$25.00 |
| $219.39 | +99.0% | -$25.00 |
When traders use butterfly on NWPX
Butterflies on NWPX are pinning bets - traders use them when they expect NWPX 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.
NWPX thesis for this butterfly
The market-implied 1-standard-deviation range for NWPX extends from approximately $97.01 on the downside to $123.49 on the upside. A NWPX long call butterfly is a pinning play: it pays maximum at the middle strike if NWPX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NWPX IV rank near 19.60% 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 NWPX at 41.90%. As a Industrials name, NWPX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NWPX-specific events.
NWPX 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. NWPX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NWPX alongside the broader basket even when NWPX-specific fundamentals are unchanged. Always rebuild the position from current NWPX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NWPX?
- A butterfly on NWPX is the butterfly strategy applied to NWPX (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 NWPX stock trading near $110.25, the strikes shown on this page are snapped to the nearest listed NWPX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NWPX 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 NWPX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.90%), the computed maximum profit is $445.10 per contract and the computed maximum loss is -$25.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NWPX butterfly?
- The breakeven for the NWPX butterfly priced on this page is roughly $105.19 and $114.92 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 NWPX market-implied 1-standard-deviation expected move is approximately 12.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NWPX?
- Butterflies on NWPX are pinning bets - traders use them when they expect NWPX 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 NWPX implied volatility affect this butterfly?
- NWPX ATM IV is at 41.90% with IV rank near 19.60%, 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.