How are THO 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 THO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.30%), the computed maximum profit is $469.55 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a THO butterfly?

The breakeven for the THO butterfly priced on this page is roughly $75.01 and $84.80 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 THO market-implied 1-standard-deviation expected move is approximately 11.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current THO implied volatility affect this butterfly?

THO ATM IV is at 40.30% with IV rank near 26.72%, 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.

THO Butterfly Strategy

THO (Thor Industries, Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Thor Industries, Inc. specializes in the design, production, and sale of recreational vehicles (RVs), complemented by a range of related parts and accessories. Its operations span the United States, Canada, and Europe. The company offers an extensive selection of RVs, including various travel trailers (from conventional models to luxury fifth wheels) and gasoline or diesel-powered Class A, Class B, and Class C motorhomes. Additionally, it caters to European markets with motorcaravans, caravans, campervans, and urban recreational vehicles. Beyond finished products, Thor also manufactures aluminum extrusions and specialized component parts for other RV and industrial manufacturers, and provides digital products and services specifically designed for RVs. Its diverse offerings are distributed through independent and non-franchise dealerships.

THO (Thor Industries, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $4.10B, a trailing P/E of 15.77, a beta of 1.32 versus the broader market, a 52-week range of 69.71-122.83, average daily share volume of 768K, a public-listing history dating back to 1984, approximately 22K full-time employees. These structural characteristics shape how THO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates THO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. THO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on THO?

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 THO snapshot

As of June 29, 2026, spot at $78.91, ATM IV 40.30%, IV rank 26.72%, expected move 11.55%. The butterfly on THO 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 81-day expiry.

Why this butterfly structure on THO specifically: THO IV at 40.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a THO butterfly, with a market-implied 1-standard-deviation move of approximately 11.55% (roughly $9.12 on the underlying). The 81-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated THO expiries trade a higher absolute premium for lower per-day decay. Position sizing on THO should anchor to the underlying notional of $78.91 per share and to the trader's directional view on THO stock.

THO butterfly setup

The THO 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 THO near $78.91, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed THO chain at a 81-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 THO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$8.10
Sell 2	Call	$80.00	$5.70
Buy 1	Call	$85.00	$3.50

THO butterfly risk and reward

Net Premium / Debit: -$20.00
Max Profit (per contract): $469.55
Max Loss (per contract): -$20.00
Breakeven(s): $75.01, $84.80
Risk / Reward Ratio: 23.477

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.

THO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on THO. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$20.00
$17.46	-77.9%	-$20.00
$34.90	-55.8%	-$20.00
$52.35	-33.7%	-$20.00
$69.80	-11.6%	-$20.00
$87.24	+10.6%	-$20.00
$104.69	+32.7%	-$20.00
$122.13	+54.8%	-$20.00
$139.58	+76.9%	-$20.00
$157.03	+99.0%	-$20.00

When traders use butterfly on THO

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

THO thesis for this butterfly

The market-implied 1-standard-deviation range for THO extends from approximately $69.79 on the downside to $88.03 on the upside. A THO long call butterfly is a pinning play: it pays maximum at the middle strike if THO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current THO IV rank near 26.72% 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 THO at 40.30%. As a Consumer Cyclical name, THO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to THO-specific events.

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

Frequently asked questions

What is a butterfly on THO?: A butterfly on THO is the butterfly strategy applied to THO (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 THO stock trading near $78.91, the strikes shown on this page are snapped to the nearest listed THO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are THO 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 THO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.30%), the computed maximum profit is $469.55 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a THO butterfly?: The breakeven for the THO butterfly priced on this page is roughly $75.01 and $84.80 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 THO market-implied 1-standard-deviation expected move is approximately 11.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on THO?: Butterflies on THO are pinning bets - traders use them when they expect THO 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 THO implied volatility affect this butterfly?: THO ATM IV is at 40.30% with IV rank near 26.72%, 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.