SPWH Butterfly Strategy
SPWH (Sportsman's Warehouse Holdings, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NASDAQ.
Sportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States. It offers camping products, such as backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents, and tools; and apparel products, including camouflage, jackets, hats, outerwear, sportswear, technical gear, and work wear. The company also provides fishing products comprising bait, electronics, fishing rods, flotation items, fly fishing products, lines, lures, reels, tackles, and small boats; and foot wear products consisting of hiking and work boots, socks, sport sandals, technical footwear, trial and casual shoes, and waders. In addition, it offers hunting and shooting products, such as ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, firearms safety and storage products, reloading equipment, and shooting gear products; and optics, electronics, and accessories, including gift items, GPS devices, knives, lighting, optics, and two-way radios. Further, the company's stores provide archery technician services, fishing-reel line winding, bore sighting and scope mounting, and cleaning services, as well as issues hunting and fishing licenses. Additionally, it offers various private label and special make-up offerings under the Rustic Ridge, Killik, Vital Impact, Yukon Gold, Lost Creek, and Sportsman's Warehouse brands.
SPWH (Sportsman's Warehouse Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $51.6M, a beta of 0.44 versus the broader market, a 52-week range of 1.08-4.331, average daily share volume of 780K, a public-listing history dating back to 2014, approximately 2K full-time employees. These structural characteristics shape how SPWH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.44 indicates SPWH 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 SPWH?
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 SPWH snapshot
As of May 15, 2026, spot at $1.33, ATM IV 24.00%, IV rank 1.32%, expected move 6.88%. The butterfly on SPWH 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 SPWH specifically: SPWH IV at 24.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a SPWH butterfly, with a market-implied 1-standard-deviation move of approximately 6.88% (roughly $0.09 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 SPWH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPWH should anchor to the underlying notional of $1.33 per share and to the trader's directional view on SPWH stock.
SPWH butterfly setup
The SPWH 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 SPWH near $1.33, the first option leg uses a $1.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPWH 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 SPWH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.26 | N/A |
| Sell 2 | Call | $1.33 | N/A |
| Buy 1 | Call | $1.40 | N/A |
SPWH 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.
SPWH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SPWH. 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 SPWH
Butterflies on SPWH are pinning bets - traders use them when they expect SPWH 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.
SPWH thesis for this butterfly
The market-implied 1-standard-deviation range for SPWH extends from approximately $1.24 on the downside to $1.42 on the upside. A SPWH long call butterfly is a pinning play: it pays maximum at the middle strike if SPWH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SPWH IV rank near 1.32% 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 SPWH at 24.00%. As a Consumer Cyclical name, SPWH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPWH-specific events.
SPWH 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. SPWH positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPWH alongside the broader basket even when SPWH-specific fundamentals are unchanged. Always rebuild the position from current SPWH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SPWH?
- A butterfly on SPWH is the butterfly strategy applied to SPWH (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 SPWH stock trading near $1.33, the strikes shown on this page are snapped to the nearest listed SPWH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SPWH 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 SPWH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.00%), 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 SPWH butterfly?
- The breakeven for the SPWH 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 SPWH market-implied 1-standard-deviation expected move is approximately 6.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SPWH?
- Butterflies on SPWH are pinning bets - traders use them when they expect SPWH 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 SPWH implied volatility affect this butterfly?
- SPWH ATM IV is at 24.00% with IV rank near 1.32%, 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.