PWR Butterfly Strategy
PWR (Quanta Services, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Quanta Services, Inc. provides specialty contracting services worldwide. The Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; energized installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The Renewable Energy Infrastructure Solutions segment is the involved in engineering, procurement, construction, upgrade, repair, and maintenance services to renewable generation facilities, such as wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The Underground Utility and Infrastructure Solutions segment offers design, engineering, construction, upgrade repair, and maintenance services to customers involved in the transportation, distribution, storage and processing of natural gas, oil, and other products; fabrication of pipeline support systems and related structures and facilities; and engineering and construction of pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997.
PWR (Quanta Services, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $116.10B, a trailing P/E of 103.88, a beta of 1.24 versus the broader market, a 52-week range of 320.56-788.75, average daily share volume of 1.1M, a public-listing history dating back to 1998, approximately 58K full-time employees. These structural characteristics shape how PWR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places PWR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 103.88 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. PWR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PWR?
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 PWR snapshot
As of May 15, 2026, spot at $769.63, ATM IV 43.10%, IV rank 56.74%, expected move 12.36%. The butterfly on PWR 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 34-day expiry.
Why this butterfly structure on PWR specifically: PWR IV at 43.10% 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 12.36% (roughly $95.10 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PWR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PWR should anchor to the underlying notional of $769.63 per share and to the trader's directional view on PWR stock.
PWR butterfly setup
The PWR 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 PWR near $769.63, the first option leg uses a $730.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PWR chain at a 34-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 PWR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $730.00 | $65.25 |
| Sell 2 | Call | $770.00 | $40.75 |
| Buy 1 | Call | $810.00 | $24.05 |
PWR butterfly risk and reward
- Net Premium / Debit
- -$780.00
- Max Profit (per contract)
- $2,869.75
- Max Loss (per contract)
- -$780.00
- Breakeven(s)
- $737.80, $802.20
- Risk / Reward Ratio
- 3.679
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.
PWR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PWR. 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% | -$780.00 |
| $170.18 | -77.9% | -$780.00 |
| $340.35 | -55.8% | -$780.00 |
| $510.52 | -33.7% | -$780.00 |
| $680.68 | -11.6% | -$780.00 |
| $850.85 | +10.6% | -$780.00 |
| $1,021.02 | +32.7% | -$780.00 |
| $1,191.19 | +54.8% | -$780.00 |
| $1,361.36 | +76.9% | -$780.00 |
| $1,531.53 | +99.0% | -$780.00 |
When traders use butterfly on PWR
Butterflies on PWR are pinning bets - traders use them when they expect PWR 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.
PWR thesis for this butterfly
The market-implied 1-standard-deviation range for PWR extends from approximately $674.53 on the downside to $864.73 on the upside. A PWR long call butterfly is a pinning play: it pays maximum at the middle strike if PWR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PWR IV rank near 56.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PWR should anchor more to the directional view and the expected-move geometry. As a Industrials name, PWR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PWR-specific events.
PWR 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. PWR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PWR alongside the broader basket even when PWR-specific fundamentals are unchanged. Always rebuild the position from current PWR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PWR?
- A butterfly on PWR is the butterfly strategy applied to PWR (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 PWR stock trading near $769.63, the strikes shown on this page are snapped to the nearest listed PWR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PWR 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 PWR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.10%), the computed maximum profit is $2,869.75 per contract and the computed maximum loss is -$780.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PWR butterfly?
- The breakeven for the PWR butterfly priced on this page is roughly $737.80 and $802.20 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 PWR market-implied 1-standard-deviation expected move is approximately 12.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PWR?
- Butterflies on PWR are pinning bets - traders use them when they expect PWR 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 PWR implied volatility affect this butterfly?
- PWR ATM IV is at 43.10% with IV rank near 56.74%, 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.