PATK Butterfly Strategy
PATK (Patrick Industries, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NASDAQ.
Patrick Industries, Inc. serves as a primary provider of essential components, construction products, and various materials to key sectors such as the recreational vehicle (RV), marine, manufactured housing, and industrial markets. The company's operational footprint covers the United States, China, and Canada, executed through its distinct Manufacturing and Distribution divisions. Within its Manufacturing segment, the company produces a comprehensive range of specialized parts and finished goods. This includes numerous interior furnishings like furniture, shelving, wall panels, various countertop options (including solid surface, granite, and quartz fabrications), bespoke cabinetry, and cabinet doors. Patrick Industries also fabricates fiberglass bath fixtures, tile systems, decorative laminated panels, and polymer-based flooring. Tailored for the marine and RV industries, it manufactures aluminum and plastic goods, fiberglass and plastic components, dash panels, and offers RV painting services.
PATK (Patrick Industries, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $2.85B, a trailing P/E of 18.97, a beta of 1.10 versus the broader market, a 52-week range of 81.29-148.5, average daily share volume of 623K, a public-listing history dating back to 1980, approximately 10K full-time employees. These structural characteristics shape how PATK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places PATK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PATK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PATK?
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.
PATK snapshot
As of August 14, 2026, spot at $85.56, ATM IV 38.80%, IV rank 3.13%, expected move 11.12%. The butterfly on PATK 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 7-day expiry.
Why this butterfly structure on PATK specifically: PATK IV at 38.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a PATK butterfly, with a market-implied 1-standard-deviation move of approximately 11.12% (roughly $9.52 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PATK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PATK should anchor to the underlying notional of $85.56 per share and to the trader's directional view on PATK stock.
PATK butterfly setup
The PATK 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 PATK at $85.56 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PATK chain at a 7-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 PATK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $6.00 |
| Sell 2 | Call | $85.00 | $2.35 |
| Buy 1 | Call | $90.00 | $0.56 |
PATK butterfly risk and reward
- Net Premium / Debit
- -$186.00
- Max Profit (per contract)
- $300.49
- Max Loss (per contract)
- -$186.00
- Breakeven(s)
- $81.86, $88.14
- Risk / Reward Ratio
- 1.616
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.
PATK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PATK. 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% | -$186.00 |
| $18.93 | -77.9% | -$186.00 |
| $37.84 | -55.8% | -$186.00 |
| $56.76 | -33.7% | -$186.00 |
| $75.68 | -11.6% | -$186.00 |
| $94.59 | +10.6% | -$186.00 |
| $113.51 | +32.7% | -$186.00 |
| $132.43 | +54.8% | -$186.00 |
| $151.34 | +76.9% | -$186.00 |
| $170.26 | +99.0% | -$186.00 |
When traders use butterfly on PATK
Butterflies on PATK are pinning bets - traders use them when they expect PATK 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.
PATK thesis for this butterfly
The market-implied 1-standard-deviation range for PATK extends from approximately $76.04 on the downside to $95.08 on the upside. A PATK long call butterfly is a pinning play: it pays maximum at the middle strike if PATK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PATK IV rank near 3.13% 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 PATK at 38.80%. As a Consumer Cyclical name, PATK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PATK-specific events.
PATK 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. PATK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PATK alongside the broader basket even when PATK-specific fundamentals are unchanged. Always rebuild the position from current PATK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PATK?
- A butterfly on PATK is the butterfly strategy applied to PATK (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 PATK stock at $85.56 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PATK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PATK 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 PATK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 38.80%), the computed maximum profit is $300.49 per contract and the computed maximum loss is -$186.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PATK butterfly?
- The breakeven for the PATK butterfly priced on this page is roughly $81.86 and $88.14 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 PATK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PATK?
- Butterflies on PATK are pinning bets - traders use them when they expect PATK 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 PATK implied volatility affect this butterfly?
- PATK ATM IV is at 38.80% with IV rank near 3.13%, 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.