How are OMF 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 OMF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.60%), the computed maximum profit is $225.90 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OMF butterfly?

The breakeven for the OMF butterfly priced on this page is roughly $50.13 and $54.88 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 OMF market-implied 1-standard-deviation expected move is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OMF implied volatility affect this butterfly?

OMF ATM IV is at 29.60% with IV rank near 3.53%, 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.

OMF Butterfly Strategy

OMF (OneMain Holdings, Inc.), in the Financial Services sector, (Financial - Credit Services industry), listed on NYSE.

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards and insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It operates through a network of approximately 1,400 branch offices in 44 states in the United States, as well as through its website onemainfinancial.com. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.

OMF (OneMain Holdings, Inc.) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $6.06B, a trailing P/E of 7.69, a beta of 1.25 versus the broader market, a 52-week range of 45.78-71.93, average daily share volume of 1.5M, a public-listing history dating back to 2013, approximately 9K full-time employees. These structural characteristics shape how OMF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.25 places OMF roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.69 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. OMF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on OMF?

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 OMF snapshot

As of May 15, 2026, spot at $53.34, ATM IV 29.60%, IV rank 3.53%, expected move 8.49%. The butterfly on OMF 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 98-day expiry.

Why this butterfly structure on OMF specifically: OMF IV at 29.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a OMF butterfly, with a market-implied 1-standard-deviation move of approximately 8.49% (roughly $4.53 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OMF expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMF should anchor to the underlying notional of $53.34 per share and to the trader's directional view on OMF stock.

OMF butterfly setup

The OMF 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 OMF near $53.34, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMF chain at a 98-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 OMF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$5.95
Sell 2	Call	$52.50	$4.30
Buy 1	Call	$55.00	$2.85

OMF butterfly risk and reward

Net Premium / Debit: -$20.00
Max Profit (per contract): $225.90
Max Loss (per contract): -$20.00
Breakeven(s): $50.13, $54.88
Risk / Reward Ratio: 11.295

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.

OMF butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on OMF. 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%	-$20.00
$11.80	-77.9%	-$20.00
$23.60	-55.8%	-$20.00
$35.39	-33.7%	-$20.00
$47.18	-11.5%	-$20.00
$58.97	+10.6%	-$20.00
$70.77	+32.7%	-$20.00
$82.56	+54.8%	-$20.00
$94.35	+76.9%	-$20.00
$106.14	+99.0%	-$20.00

When traders use butterfly on OMF

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

OMF thesis for this butterfly

The market-implied 1-standard-deviation range for OMF extends from approximately $48.81 on the downside to $57.87 on the upside. A OMF long call butterfly is a pinning play: it pays maximum at the middle strike if OMF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OMF IV rank near 3.53% 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 OMF at 29.60%. As a Financial Services name, OMF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMF-specific events.

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

Frequently asked questions

What is a butterfly on OMF?: A butterfly on OMF is the butterfly strategy applied to OMF (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 OMF stock trading near $53.34, the strikes shown on this page are snapped to the nearest listed OMF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OMF 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 OMF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.60%), the computed maximum profit is $225.90 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OMF butterfly?: The breakeven for the OMF butterfly priced on this page is roughly $50.13 and $54.88 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 OMF market-implied 1-standard-deviation expected move is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on OMF?: Butterflies on OMF are pinning bets - traders use them when they expect OMF 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 OMF implied volatility affect this butterfly?: OMF ATM IV is at 29.60% with IV rank near 3.53%, 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.