SNEX Butterfly Strategy
SNEX (StoneX Group Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NASDAQ.
StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. Its Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The company's Institutional segment provides equity trading services to institutional clients; and originates, structures, and places debt instruments in capital markets worldwide. Its services cover foreign securities, including unlisted American Depository Receipts, Global Depository Receipts, and foreign ordinary shares. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies; engages in asset management business; and offers clearing and execution services in futures exchanges, brokerage foreign exchange services for the financial institutions and professional traders, and OTC products. The company's Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management and investment services, as well as offers physical gold and other precious metals in various forms and denominations through coininvest.com and silver-to-go.com.
SNEX (StoneX Group Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $9.20B, a trailing P/E of 19.20, a beta of 0.64 versus the broader market, a 52-week range of 53.52667-125.42, average daily share volume of 752K, a public-listing history dating back to 1995, approximately 5K full-time employees. These structural characteristics shape how SNEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates SNEX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on SNEX?
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 SNEX snapshot
As of May 15, 2026, spot at $109.81, ATM IV 38.40%, IV rank 6.41%, expected move 11.01%. The butterfly on SNEX 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 SNEX specifically: SNEX IV at 38.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a SNEX butterfly, with a market-implied 1-standard-deviation move of approximately 11.01% (roughly $12.09 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 SNEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SNEX should anchor to the underlying notional of $109.81 per share and to the trader's directional view on SNEX stock.
SNEX butterfly setup
The SNEX 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 SNEX near $109.81, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SNEX 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 SNEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $105.00 | $9.00 |
| Sell 2 | Call | $110.00 | $5.65 |
| Buy 1 | Call | $115.00 | $3.70 |
SNEX butterfly risk and reward
- Net Premium / Debit
- -$140.00
- Max Profit (per contract)
- $323.32
- Max Loss (per contract)
- -$140.00
- Breakeven(s)
- $106.40, $113.60
- Risk / Reward Ratio
- 2.309
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.
SNEX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SNEX. 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% | -$140.00 |
| $24.29 | -77.9% | -$140.00 |
| $48.57 | -55.8% | -$140.00 |
| $72.85 | -33.7% | -$140.00 |
| $97.12 | -11.6% | -$140.00 |
| $121.40 | +10.6% | -$140.00 |
| $145.68 | +32.7% | -$140.00 |
| $169.96 | +54.8% | -$140.00 |
| $194.24 | +76.9% | -$140.00 |
| $218.52 | +99.0% | -$140.00 |
When traders use butterfly on SNEX
Butterflies on SNEX are pinning bets - traders use them when they expect SNEX 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.
SNEX thesis for this butterfly
The market-implied 1-standard-deviation range for SNEX extends from approximately $97.72 on the downside to $121.90 on the upside. A SNEX long call butterfly is a pinning play: it pays maximum at the middle strike if SNEX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SNEX IV rank near 6.41% 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 SNEX at 38.40%. As a Financial Services name, SNEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SNEX-specific events.
SNEX 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. SNEX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SNEX alongside the broader basket even when SNEX-specific fundamentals are unchanged. Always rebuild the position from current SNEX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SNEX?
- A butterfly on SNEX is the butterfly strategy applied to SNEX (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 SNEX stock trading near $109.81, the strikes shown on this page are snapped to the nearest listed SNEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SNEX 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 SNEX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.40%), the computed maximum profit is $323.32 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SNEX butterfly?
- The breakeven for the SNEX butterfly priced on this page is roughly $106.40 and $113.60 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 SNEX market-implied 1-standard-deviation expected move is approximately 11.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SNEX?
- Butterflies on SNEX are pinning bets - traders use them when they expect SNEX 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 SNEX implied volatility affect this butterfly?
- SNEX ATM IV is at 38.40% with IV rank near 6.41%, 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.