SFIX Butterfly Strategy
SFIX (Stitch Fix, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NASDAQ.
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
SFIX (Stitch Fix, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $426.6M, a beta of 2.33 versus the broader market, a 52-week range of 2.95-5.94, average daily share volume of 2.0M, a public-listing history dating back to 2017, approximately 5K full-time employees. These structural characteristics shape how SFIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.33 indicates SFIX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on SFIX?
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 SFIX snapshot
As of May 15, 2026, spot at $3.02, ATM IV 93.20%, IV rank 26.32%, expected move 26.72%. The butterfly on SFIX 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 SFIX specifically: SFIX IV at 93.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SFIX butterfly, with a market-implied 1-standard-deviation move of approximately 26.72% (roughly $0.81 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 SFIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SFIX should anchor to the underlying notional of $3.02 per share and to the trader's directional view on SFIX stock.
SFIX butterfly setup
The SFIX 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 SFIX near $3.02, the first option leg uses a $2.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SFIX 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 SFIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.87 | N/A |
| Sell 2 | Call | $3.02 | N/A |
| Buy 1 | Call | $3.17 | N/A |
SFIX 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.
SFIX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SFIX. 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 SFIX
Butterflies on SFIX are pinning bets - traders use them when they expect SFIX 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.
SFIX thesis for this butterfly
The market-implied 1-standard-deviation range for SFIX extends from approximately $2.21 on the downside to $3.83 on the upside. A SFIX long call butterfly is a pinning play: it pays maximum at the middle strike if SFIX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SFIX IV rank near 26.32% 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 SFIX at 93.20%. As a Consumer Cyclical name, SFIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SFIX-specific events.
SFIX 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. SFIX positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SFIX alongside the broader basket even when SFIX-specific fundamentals are unchanged. Always rebuild the position from current SFIX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SFIX?
- A butterfly on SFIX is the butterfly strategy applied to SFIX (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 SFIX stock trading near $3.02, the strikes shown on this page are snapped to the nearest listed SFIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SFIX 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 SFIX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 93.20%), 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 SFIX butterfly?
- The breakeven for the SFIX 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 SFIX market-implied 1-standard-deviation expected move is approximately 26.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SFIX?
- Butterflies on SFIX are pinning bets - traders use them when they expect SFIX 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 SFIX implied volatility affect this butterfly?
- SFIX ATM IV is at 93.20% with IV rank near 26.32%, 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.