How are PVH 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 PVH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.10%), the computed maximum profit is $417.27 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PVH butterfly?

The breakeven for the PVH butterfly priced on this page is roughly $75.46 and $84.50 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 PVH market-implied 1-standard-deviation expected move is approximately 16.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PVH implied volatility affect this butterfly?

PVH ATM IV is at 57.10% with IV rank near 49.70%, 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.

PVH Butterfly Strategy

PVH (PVH Corp.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.

PVH Corp. operates as an apparel company worldwide. The company operates through six segments: Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, Heritage Brands Wholesale, and Heritage Brands Retail. It designs, markets, and retails men's, women's, and children's apparel and accessories, including branded dress shirts, neckwear, sportswear, jeans wear, performance apparel, intimate apparel, underwear, swimwear, swim-related products, handbags, accessories, footwear, outerwear, home furnishings, luggage products, sleepwear, loungewear, hats, scarves, gloves, socks, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, fragrance, home bed and bath furnishings, small leather goods, and other products. The company offers its products under its own brands, such as Tommy Hilfiger, Calvin Klein, Van Heusen, IZOD, ARROW, Warner's, Olga, Geoffrey Beene, and True&Co., as well as various other owned, licensed, and private label brands. It also licenses its own brands over various products. The company distributes its products at wholesale in department, chain, and specialty stores, as well as through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations, as well as through digital commerce sites.

PVH (PVH Corp.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $3.68B, a trailing P/E of 150.11, a beta of 1.73 versus the broader market, a 52-week range of 59.6-100.15, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 16K full-time employees. These structural characteristics shape how PVH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.73 indicates PVH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 150.11 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. PVH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PVH?

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 PVH snapshot

As of May 15, 2026, spot at $80.07, ATM IV 57.10%, IV rank 49.70%, expected move 16.37%. The butterfly on PVH 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 126-day expiry.

Why this butterfly structure on PVH specifically: PVH IV at 57.10% 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 16.37% (roughly $13.11 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PVH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PVH should anchor to the underlying notional of $80.07 per share and to the trader's directional view on PVH stock.

PVH butterfly setup

The PVH 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 PVH near $80.07, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PVH chain at a 126-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 PVH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$12.55
Sell 2	Call	$80.00	$9.85
Buy 1	Call	$85.00	$7.65

PVH butterfly risk and reward

Net Premium / Debit: -$50.00
Max Profit (per contract): $417.27
Max Loss (per contract): -$50.00
Breakeven(s): $75.46, $84.50
Risk / Reward Ratio: 8.345

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.

PVH butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PVH. 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
$17.71	-77.9%	-$50.00
$35.42	-55.8%	-$50.00
$53.12	-33.7%	-$50.00
$70.82	-11.6%	-$50.00
$88.52	+10.6%	-$50.00
$106.23	+32.7%	-$50.00
$123.93	+54.8%	-$50.00
$141.63	+76.9%	-$50.00
$159.34	+99.0%	-$50.00

When traders use butterfly on PVH

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

PVH thesis for this butterfly

The market-implied 1-standard-deviation range for PVH extends from approximately $66.96 on the downside to $93.18 on the upside. A PVH long call butterfly is a pinning play: it pays maximum at the middle strike if PVH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PVH IV rank near 49.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PVH should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, PVH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PVH-specific events.

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

Frequently asked questions

What is a butterfly on PVH?: A butterfly on PVH is the butterfly strategy applied to PVH (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 PVH stock trading near $80.07, the strikes shown on this page are snapped to the nearest listed PVH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PVH 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 PVH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.10%), the computed maximum profit is $417.27 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PVH butterfly?: The breakeven for the PVH butterfly priced on this page is roughly $75.46 and $84.50 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 PVH market-implied 1-standard-deviation expected move is approximately 16.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PVH?: Butterflies on PVH are pinning bets - traders use them when they expect PVH 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 PVH implied volatility affect this butterfly?: PVH ATM IV is at 57.10% with IV rank near 49.70%, 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.