How are SHLS 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 SHLS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 93.80%), the computed maximum profit is $50.00 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 SHLS butterfly?

The breakeven for the SHLS butterfly priced on this page is roughly $10.50 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 SHLS market-implied 1-standard-deviation expected move is approximately 26.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SHLS implied volatility affect this butterfly?

SHLS ATM IV is at 93.80% with IV rank near 36.87%, 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.

SHLS Butterfly Strategy

SHLS (Shoals Technologies Group, Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. It produces EBOS components, including cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures, splice boxes, wire management solutions, and IV curve benchmarking devices. The company also sells EV Charging solutions for public and fleet electric vehicle charging stations; and EBOS systems. It sells its products principally to engineering, procurement, and construction firms that build solar energy projects and install electric vehicle charging stations. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.

SHLS (Shoals Technologies Group, Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $1.53B, a trailing P/E of 45.48, a beta of 1.74 versus the broader market, a 52-week range of 3.81-11.36, average daily share volume of 5.7M, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how SHLS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.74 indicates SHLS 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 45.48 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.

What is a butterfly on SHLS?

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 SHLS snapshot

As of May 15, 2026, spot at $10.39, ATM IV 93.80%, IV rank 36.87%, expected move 26.89%. The butterfly on SHLS 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 63-day expiry.

Why this butterfly structure on SHLS specifically: SHLS IV at 93.80% 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 26.89% (roughly $2.79 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SHLS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SHLS should anchor to the underlying notional of $10.39 per share and to the trader's directional view on SHLS stock.

SHLS butterfly setup

The SHLS 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 SHLS near $10.39, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SHLS chain at a 63-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 SHLS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$1.90
Sell 2	Call	$10.00	$1.90
Buy 1	Call	$11.00	$1.40

SHLS butterfly risk and reward

Net Premium / Debit: +$50.00
Max Profit (per contract): $50.00
Max Loss (per contract): -$50.00
Breakeven(s): $10.50
Risk / Reward Ratio: 1.000

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.

SHLS butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SHLS. 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%	+$50.00
$2.31	-77.8%	+$50.00
$4.60	-55.7%	+$50.00
$6.90	-33.6%	+$50.00
$9.19	-11.5%	+$50.00
$11.49	+10.6%	-$50.00
$13.79	+32.7%	-$50.00
$16.08	+54.8%	-$50.00
$18.38	+76.9%	-$50.00
$20.68	+99.0%	-$50.00

When traders use butterfly on SHLS

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

SHLS thesis for this butterfly

The market-implied 1-standard-deviation range for SHLS extends from approximately $7.60 on the downside to $13.18 on the upside. A SHLS long call butterfly is a pinning play: it pays maximum at the middle strike if SHLS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SHLS IV rank near 36.87% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SHLS should anchor more to the directional view and the expected-move geometry. As a Energy name, SHLS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SHLS-specific events.

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

Frequently asked questions

What is a butterfly on SHLS?: A butterfly on SHLS is the butterfly strategy applied to SHLS (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 SHLS stock trading near $10.39, the strikes shown on this page are snapped to the nearest listed SHLS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SHLS 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 SHLS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 93.80%), the computed maximum profit is $50.00 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 SHLS butterfly?: The breakeven for the SHLS butterfly priced on this page is roughly $10.50 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 SHLS market-implied 1-standard-deviation expected move is approximately 26.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SHLS?: Butterflies on SHLS are pinning bets - traders use them when they expect SHLS 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 SHLS implied volatility affect this butterfly?: SHLS ATM IV is at 93.80% with IV rank near 36.87%, 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.