PRIM Butterfly Strategy
PRIM (Primoris Services Corporation), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Primoris Services Corporation functions as a prominent specialized contracting firm, offering a wide array of services that include construction, fabrication, upkeep, modernization, and advanced engineering expertise throughout the United States and Canada. The company's operations are divided into three primary divisions: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment focuses on installing and maintaining both new and existing natural gas distribution networks, electrical transmission and distribution systems, and communications infrastructure. Within the Energy/Renewables segment, Primoris delivers comprehensive services such as engineering, procurement, and construction (EPC), alongside major civil projects like highway and bridge construction, demolition, site preparation, mass excavation, and flood control. This segment also provides retrofits, upgrades, repairs, and routine maintenance for industries ranging from renewable energy and energy storage to renewable fuels, petroleum refining, petrochemicals, and state departments of transportation. Finally, the Pipeline Services segment concentrates on the construction, maintenance, and integrity management of pipelines, in addition to installing compressor and pump stations and metering facilities for clients in the petroleum and petrochemical sectors, as well as gas, water, and sewer utility providers.
PRIM (Primoris Services Corporation) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $4.42B, a trailing P/E of 31.51, a beta of 1.44 versus the broader market, a 52-week range of 65-205.5, average daily share volume of 1.9M, a public-listing history dating back to 2008, approximately 19K full-time employees. These structural characteristics shape how PRIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates PRIM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PRIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PRIM?
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.
PRIM snapshot
As of August 14, 2026, spot at $82.96, ATM IV 58.60%, IV rank 34.65%, expected move 16.80%. The butterfly on PRIM 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 35-day expiry.
Why this butterfly structure on PRIM specifically: PRIM IV at 58.60% 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 16.80% (roughly $13.94 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRIM should anchor to the underlying notional of $82.96 per share and to the trader's directional view on PRIM stock.
PRIM butterfly setup
The PRIM 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 PRIM at $82.96 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 PRIM chain at a 35-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 PRIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $8.00 |
| Sell 2 | Call | $82.50 | $6.40 |
| Buy 1 | Call | $87.50 | $4.30 |
PRIM butterfly risk and reward
- Net Premium / Debit
- +$50.00
- Max Profit (per contract)
- $295.19
- Max Loss (per contract)
- -$200.00
- Breakeven(s)
- $85.50
- Risk / Reward Ratio
- 1.476
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.
PRIM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PRIM. 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% | +$50.00 |
| $18.35 | -77.9% | +$50.00 |
| $36.69 | -55.8% | +$50.00 |
| $55.04 | -33.7% | +$50.00 |
| $73.38 | -11.6% | +$50.00 |
| $91.72 | +10.6% | -$200.00 |
| $110.06 | +32.7% | -$200.00 |
| $128.40 | +54.8% | -$200.00 |
| $146.74 | +76.9% | -$200.00 |
| $165.09 | +99.0% | -$200.00 |
When traders use butterfly on PRIM
Butterflies on PRIM are pinning bets - traders use them when they expect PRIM 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.
PRIM thesis for this butterfly
The market-implied 1-standard-deviation range for PRIM extends from approximately $69.02 on the downside to $96.90 on the upside. A PRIM long call butterfly is a pinning play: it pays maximum at the middle strike if PRIM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PRIM IV rank near 34.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PRIM should anchor more to the directional view and the expected-move geometry. As a Industrials name, PRIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRIM-specific events.
PRIM 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. PRIM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRIM alongside the broader basket even when PRIM-specific fundamentals are unchanged. Always rebuild the position from current PRIM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PRIM?
- A butterfly on PRIM is the butterfly strategy applied to PRIM (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 PRIM stock at $82.96 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PRIM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PRIM 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 PRIM butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.60%), the computed maximum profit is $295.19 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRIM butterfly?
- The breakeven for the PRIM butterfly priced on this page is roughly $85.50 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 PRIM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PRIM?
- Butterflies on PRIM are pinning bets - traders use them when they expect PRIM 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 PRIM implied volatility affect this butterfly?
- PRIM ATM IV is at 58.60% with IV rank near 34.65%, 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.