SNX Butterfly Strategy
SNX (TD SYNNEX Corporation), in the Technology sector, (Technology Distributors industry), listed on NYSE.
TD SYNNEX Corporation provides business process services in the United States and internationally. The company distributes PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, consumer electronics, information technology (IT) systems including data center server and storage solutions, system components, software, networking, communications and security equipment, consumer electronics, and complementary products. It also provides systems design and integration solutions, build-to-order, and configure-to-order assembly capabilities; logistics services that comprise outsourced fulfillment, virtual distribution, and direct ship to end-users; cloud services; online services; and financing services comprising net terms, third party leasing, floor plan financing, and letters of credit backed financing and arrangements. In addition, the company offers marketing services, such as direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves resellers, system integrators, and retailers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021.
SNX (TD SYNNEX Corporation) trades in the Technology sector, specifically Technology Distributors, with a market capitalization of approximately $18.69B, a trailing P/E of 18.77, a beta of 1.40 versus the broader market, a 52-week range of 118.35-242.49, average daily share volume of 750K, a public-listing history dating back to 2003, approximately 23K full-time employees. These structural characteristics shape how SNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates SNX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SNX?
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 SNX snapshot
As of May 15, 2026, spot at $230.22, ATM IV 31.20%, IV rank 40.55%, expected move 8.94%. The butterfly on SNX 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 SNX specifically: SNX IV at 31.20% 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 8.94% (roughly $20.59 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 SNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SNX should anchor to the underlying notional of $230.22 per share and to the trader's directional view on SNX stock.
SNX butterfly setup
The SNX 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 SNX near $230.22, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SNX 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 SNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $220.00 | $15.45 |
| Sell 2 | Call | $230.00 | $9.45 |
| Buy 1 | Call | $240.00 | $4.75 |
SNX butterfly risk and reward
- Net Premium / Debit
- -$130.00
- Max Profit (per contract)
- $776.81
- Max Loss (per contract)
- -$130.00
- Breakeven(s)
- $221.23, $238.84
- Risk / Reward Ratio
- 5.975
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.
SNX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SNX. 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% | -$130.00 |
| $50.91 | -77.9% | -$130.00 |
| $101.81 | -55.8% | -$130.00 |
| $152.72 | -33.7% | -$130.00 |
| $203.62 | -11.6% | -$130.00 |
| $254.52 | +10.6% | -$130.00 |
| $305.42 | +32.7% | -$130.00 |
| $356.32 | +54.8% | -$130.00 |
| $407.22 | +76.9% | -$130.00 |
| $458.13 | +99.0% | -$130.00 |
When traders use butterfly on SNX
Butterflies on SNX are pinning bets - traders use them when they expect SNX 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.
SNX thesis for this butterfly
The market-implied 1-standard-deviation range for SNX extends from approximately $209.63 on the downside to $250.81 on the upside. A SNX long call butterfly is a pinning play: it pays maximum at the middle strike if SNX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SNX IV rank near 40.55% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SNX should anchor more to the directional view and the expected-move geometry. As a Technology name, SNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SNX-specific events.
SNX 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. SNX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SNX alongside the broader basket even when SNX-specific fundamentals are unchanged. Always rebuild the position from current SNX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SNX?
- A butterfly on SNX is the butterfly strategy applied to SNX (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 SNX stock trading near $230.22, the strikes shown on this page are snapped to the nearest listed SNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SNX 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 SNX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.20%), the computed maximum profit is $776.81 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SNX butterfly?
- The breakeven for the SNX butterfly priced on this page is roughly $221.23 and $238.84 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 SNX market-implied 1-standard-deviation expected move is approximately 8.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SNX?
- Butterflies on SNX are pinning bets - traders use them when they expect SNX 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 SNX implied volatility affect this butterfly?
- SNX ATM IV is at 31.20% with IV rank near 40.55%, 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.