PHIN Butterfly Strategy
PHIN (PHINIA Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
PHINIA Inc. specializes in the engineering and production of fuel injection components and systems for both gasoline and diesel engines. Beyond its core manufacturing, the company extends its reach by supplying a variety of new and reconditioned parts and services to both independent aftermarket clients and authorized original equipment service providers. Its extensive product catalog encompasses solutions across crucial automotive domains, including precise fuel delivery systems, advanced electronics and engine management, starting and charging components, as well as maintenance tools, diagnostic equipment, and vehicle testing apparatus. Established in 2023, PHINIA Inc. is headquartered in Auburn Hills, Michigan.
PHIN (PHINIA Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $2.71B, a trailing P/E of 20.84, a beta of 1.11 versus the broader market, a 52-week range of 50.795-86.935, average daily share volume of 371K, a public-listing history dating back to 2023, approximately 13K full-time employees. These structural characteristics shape how PHIN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places PHIN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PHIN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PHIN?
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.
PHIN snapshot
As of August 14, 2026, spot at $74.65, ATM IV 32.60%, IV rank 4.21%, expected move 9.35%. The butterfly on PHIN 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 PHIN specifically: PHIN IV at 32.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a PHIN butterfly, with a market-implied 1-standard-deviation move of approximately 9.35% (roughly $6.98 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 PHIN expiries trade a higher absolute premium for lower per-day decay. Position sizing on PHIN should anchor to the underlying notional of $74.65 per share and to the trader's directional view on PHIN stock.
PHIN butterfly setup
The PHIN 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 PHIN at $74.65 on that close, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PHIN 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 PHIN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $70.00 | $5.45 |
| Sell 2 | Call | $75.00 | $1.98 |
| Buy 1 | Call | $77.50 | $0.90 |
PHIN butterfly risk and reward
- Net Premium / Debit
- -$240.00
- Max Profit (per contract)
- $256.99
- Max Loss (per contract)
- -$240.00
- Breakeven(s)
- $72.40
- Risk / Reward Ratio
- 1.071
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.
PHIN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PHIN. 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% | -$240.00 |
| $16.51 | -77.9% | -$240.00 |
| $33.02 | -55.8% | -$240.00 |
| $49.52 | -33.7% | -$240.00 |
| $66.03 | -11.6% | -$240.00 |
| $82.53 | +10.6% | +$10.00 |
| $99.04 | +32.7% | +$10.00 |
| $115.54 | +54.8% | +$10.00 |
| $132.05 | +76.9% | +$10.00 |
| $148.55 | +99.0% | +$10.00 |
When traders use butterfly on PHIN
Butterflies on PHIN are pinning bets - traders use them when they expect PHIN 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.
PHIN thesis for this butterfly
The market-implied 1-standard-deviation range for PHIN extends from approximately $67.67 on the downside to $81.63 on the upside. A PHIN long call butterfly is a pinning play: it pays maximum at the middle strike if PHIN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PHIN IV rank near 4.21% 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 PHIN at 32.60%. As a Consumer Cyclical name, PHIN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PHIN-specific events.
PHIN 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. PHIN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PHIN alongside the broader basket even when PHIN-specific fundamentals are unchanged. Always rebuild the position from current PHIN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PHIN?
- A butterfly on PHIN is the butterfly strategy applied to PHIN (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 PHIN stock at $74.65 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PHIN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PHIN 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 PHIN butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $256.99 per contract and the computed maximum loss is -$240.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PHIN butterfly?
- The breakeven for the PHIN butterfly priced on this page is roughly $72.40 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 PHIN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PHIN?
- Butterflies on PHIN are pinning bets - traders use them when they expect PHIN 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 PHIN implied volatility affect this butterfly?
- PHIN ATM IV is at 32.60% with IV rank near 4.21%, 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.