QXO Butterfly Strategy
QXO (QXO, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.
QXO, Inc. is a publicly traded distributor of roofing, waterproofing and complementary building products in the United States. It plans to become tech-enabled in the building products distribution industry and generate outsized value for shareholders. The company was founded on October 3, 2002, and is headquartered in Greenwich, CT.
QXO (QXO, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $15.59B, a beta of 2.30 versus the broader market, a 52-week range of 13.18-27.61, average daily share volume of 20.2M, a public-listing history dating back to 2012, approximately 8K full-time employees. These structural characteristics shape how QXO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.30 indicates QXO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. QXO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on QXO?
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.
QXO snapshot
As of August 14, 2026, spot at $14.52, ATM IV 60.17%, IV rank 52.61%, expected move 17.25%. The butterfly on QXO 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 28-day expiry.
Why this butterfly structure on QXO specifically: QXO IV at 60.17% 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 17.25% (roughly $2.50 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QXO expiries trade a higher absolute premium for lower per-day decay. Position sizing on QXO should anchor to the underlying notional of $14.52 per share and to the trader's directional view on QXO stock.
QXO butterfly setup
The QXO 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 QXO at $14.52 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QXO chain at a 28-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 QXO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.00 | $1.25 |
| Sell 2 | Call | $14.50 | $1.03 |
| Buy 1 | Call | $15.00 | $0.78 |
QXO butterfly risk and reward
- Net Premium / Debit
- +$2.50
- Max Profit (per contract)
- $47.71
- Max Loss (per contract)
- $2.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 19.082
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.
QXO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on QXO. 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 | -99.9% | +$2.50 |
| $3.22 | -77.8% | +$2.50 |
| $6.43 | -55.7% | +$2.50 |
| $9.64 | -33.6% | +$2.50 |
| $12.85 | -11.5% | +$2.50 |
| $16.06 | +10.6% | +$2.50 |
| $19.27 | +32.7% | +$2.50 |
| $22.48 | +54.8% | +$2.50 |
| $25.68 | +76.9% | +$2.50 |
| $28.89 | +99.0% | +$2.50 |
When traders use butterfly on QXO
Butterflies on QXO are pinning bets - traders use them when they expect QXO 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.
QXO thesis for this butterfly
The market-implied 1-standard-deviation range for QXO extends from approximately $12.02 on the downside to $17.02 on the upside. A QXO long call butterfly is a pinning play: it pays maximum at the middle strike if QXO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QXO IV rank near 52.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on QXO should anchor more to the directional view and the expected-move geometry. As a Industrials name, QXO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QXO-specific events.
QXO 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. QXO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QXO alongside the broader basket even when QXO-specific fundamentals are unchanged. Always rebuild the position from current QXO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on QXO?
- A butterfly on QXO is the butterfly strategy applied to QXO (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 QXO stock at $14.52 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed QXO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are QXO 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 QXO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 60.17%), the computed maximum profit is $47.71 per contract and the computed maximum loss is $2.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QXO butterfly?
- The breakeven for the QXO butterfly priced on this page is no defined breakeven on the modeled curve 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 QXO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on QXO?
- Butterflies on QXO are pinning bets - traders use them when they expect QXO 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 QXO implied volatility affect this butterfly?
- QXO ATM IV is at 60.17% with IV rank near 52.61%, 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.