SCVL Butterfly Strategy
SCVL (Shoe Carnival, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NASDAQ.
Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. As of January 29, 2022, it operated 372 stores in 35 states and Puerto Rico under the Shoe Carnival banner; and 21 locations across the Southeast under the Shoe Station banner. The company also sells its products through online shopping at shoecarnival.com, as well as through mobile application. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.
SCVL (Shoe Carnival, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $441.4M, a trailing P/E of 8.41, a beta of 1.43 versus the broader market, a 52-week range of 15.04-26.57, average daily share volume of 400K, a public-listing history dating back to 1993, approximately 3K full-time employees. These structural characteristics shape how SCVL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates SCVL 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 8.41 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SCVL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SCVL?
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 SCVL snapshot
As of May 15, 2026, spot at $15.72, ATM IV 70.50%, IV rank 13.14%, expected move 20.21%. The butterfly on SCVL 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 SCVL specifically: SCVL IV at 70.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a SCVL butterfly, with a market-implied 1-standard-deviation move of approximately 20.21% (roughly $3.18 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 SCVL expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCVL should anchor to the underlying notional of $15.72 per share and to the trader's directional view on SCVL stock.
SCVL butterfly setup
The SCVL 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 SCVL near $15.72, the first option leg uses a $14.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCVL 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 SCVL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.93 | N/A |
| Sell 2 | Call | $15.72 | N/A |
| Buy 1 | Call | $16.51 | N/A |
SCVL butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
SCVL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SCVL. 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.
When traders use butterfly on SCVL
Butterflies on SCVL are pinning bets - traders use them when they expect SCVL 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.
SCVL thesis for this butterfly
The market-implied 1-standard-deviation range for SCVL extends from approximately $12.54 on the downside to $18.90 on the upside. A SCVL long call butterfly is a pinning play: it pays maximum at the middle strike if SCVL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SCVL IV rank near 13.14% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on SCVL at 70.50%. As a Consumer Cyclical name, SCVL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCVL-specific events.
SCVL 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. SCVL positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCVL alongside the broader basket even when SCVL-specific fundamentals are unchanged. Always rebuild the position from current SCVL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SCVL?
- A butterfly on SCVL is the butterfly strategy applied to SCVL (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 SCVL stock trading near $15.72, the strikes shown on this page are snapped to the nearest listed SCVL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SCVL 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 SCVL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 70.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SCVL butterfly?
- The breakeven for the SCVL butterfly priced on this page is no defined breakeven on the modeled curve 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 SCVL market-implied 1-standard-deviation expected move is approximately 20.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SCVL?
- Butterflies on SCVL are pinning bets - traders use them when they expect SCVL 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 SCVL implied volatility affect this butterfly?
- SCVL ATM IV is at 70.50% with IV rank near 13.14%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.