How are PHM 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 PHM butterfly priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 38.70%), the computed maximum profit is $437.09 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PHM butterfly?

The breakeven for the PHM butterfly priced on this page is roughly $111.30 and $120.70 at expiration, derived from the September 30, 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 PHM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PHM implied volatility affect this butterfly?

PHM ATM IV is at 38.70% with IV rank near 64.70%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

PHM Butterfly Strategy

PHM (PulteGroup, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.

PulteGroup, Inc. engages in the homebuilding business. The firm is also involved in mortgage banking and title and insurance brokerage operations. It operates through the Homebuilding and Financial services business segments. The Homebuilding segment includes operations from Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia, Georgia, North Carolina, South Carolina, Tennessee, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Texas, Arizona, California, Nevada, New Mexico, and Washington. The Financial Services segment is composed of mortgage banking and title operations. The company was founded by William J.

PHM (PulteGroup, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $22.40B, a trailing P/E of 11.67, a beta of 1.20 versus the broader market, a 52-week range of 108.49-144.5, average daily share volume of 1.6M, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how PHM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.20 places PHM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.67 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. PHM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PHM?

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.

PHM snapshot

As of September 30, 2026, spot at $116.25, ATM IV 38.70%, IV rank 64.70%, expected move 11.09%. The butterfly on PHM below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 30-day expiry.

Why this butterfly structure on PHM specifically: PHM IV at 38.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 11.09% (roughly $12.90 on the underlying). The 30-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PHM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PHM should anchor to the underlying notional of $116.25 per share and to the trader's directional view on PHM stock.

PHM butterfly setup

The PHM butterfly below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PHM at $116.25 on that close, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PHM chain at a 30-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 PHM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$110.00	$9.75
Sell 2	Call	$116.00	$5.85
Buy 1	Call	$122.00	$3.25

PHM butterfly risk and reward

Net Premium / Debit: -$130.00
Max Profit (per contract): $437.09
Max Loss (per contract): -$130.00
Breakeven(s): $111.30, $120.70
Risk / Reward Ratio: 3.362

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.

PHM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PHM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$130.00
$25.71	-77.9%	-$130.00
$51.41	-55.8%	-$130.00
$77.12	-33.7%	-$130.00
$102.82	-11.6%	-$130.00
$128.52	+10.6%	-$130.00
$154.22	+32.7%	-$130.00
$179.93	+54.8%	-$130.00
$205.63	+76.9%	-$130.00
$231.33	+99.0%	-$130.00

When traders use butterfly on PHM

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

PHM thesis for this butterfly

The market-implied 1-standard-deviation range for PHM extends from approximately $103.35 on the downside to $129.15 on the upside. A PHM long call butterfly is a pinning play: it pays maximum at the middle strike if PHM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PHM IV rank near 64.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PHM should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, PHM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PHM-specific events.

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

Frequently asked questions

What is a butterfly on PHM?: A butterfly on PHM is the butterfly strategy applied to PHM (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 PHM stock at $116.25 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed PHM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PHM 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 PHM butterfly priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 38.70%), the computed maximum profit is $437.09 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PHM butterfly?: The breakeven for the PHM butterfly priced on this page is roughly $111.30 and $120.70 at expiration, derived from the September 30, 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 PHM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PHM?: Butterflies on PHM are pinning bets - traders use them when they expect PHM 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 PHM implied volatility affect this butterfly?: PHM ATM IV is at 38.70% with IV rank near 64.70%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.