TMP Butterfly Strategy
TMP (Tompkins Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on AMEX.
Tompkins Financial Corporation, a financial holding company, provides commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. The company operates in three segments: Banking, Insurance, and Wealth Management. It accepts various deposit products, including checking accounts, savings accounts, time deposits, and IRA products, as well as brokered, reciprocal, and municipal money market deposits. The company also offers loans for various business purposes, including real estate financing, construction, equipment financing, accounts receivable financing, and commercial leasing; residential mortgage loans; personal loans; residential real estate loans; home equity loans; commercial and industrial loans; commercial real estate loans; agriculture loans; and consumer loans, such as personal installment loans, direct and indirect automobile financing, and overdraft lines of credit. In addition, it provides letters of credit and sweep accounts; credit and debit cards; and deposit and cash management, internet-based account, remote deposit, safe deposit, voice response, ATM, and mobile and internet banking services. Further, the company offers investment management, trust and estate, and financial and tax planning services; property and casualty, medical, life, disability, and long-term care insurance services; employee benefit consulting services; and insurance planning services.
TMP (Tompkins Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.19B, a trailing P/E of 7.04, a beta of 0.74 versus the broader market, a 52-week range of 59.67-86.95, average daily share volume of 65K, a public-listing history dating back to 1986, approximately 941 full-time employees. These structural characteristics shape how TMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places TMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.04 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TMP?
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 TMP snapshot
As of May 15, 2026, spot at $82.36, ATM IV 35.90%, IV rank 3.50%, expected move 10.29%. The butterfly on TMP 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 TMP specifically: TMP IV at 35.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a TMP butterfly, with a market-implied 1-standard-deviation move of approximately 10.29% (roughly $8.48 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 TMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMP should anchor to the underlying notional of $82.36 per share and to the trader's directional view on TMP stock.
TMP butterfly setup
The TMP 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 TMP near $82.36, the first option leg uses a $78.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMP 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 TMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $78.24 | N/A |
| Sell 2 | Call | $82.36 | N/A |
| Buy 1 | Call | $86.48 | N/A |
TMP 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.
TMP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TMP. 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 TMP
Butterflies on TMP are pinning bets - traders use them when they expect TMP 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.
TMP thesis for this butterfly
The market-implied 1-standard-deviation range for TMP extends from approximately $73.88 on the downside to $90.84 on the upside. A TMP long call butterfly is a pinning play: it pays maximum at the middle strike if TMP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TMP IV rank near 3.50% 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 TMP at 35.90%. As a Financial Services name, TMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMP-specific events.
TMP 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. TMP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMP alongside the broader basket even when TMP-specific fundamentals are unchanged. Always rebuild the position from current TMP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TMP?
- A butterfly on TMP is the butterfly strategy applied to TMP (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 TMP stock trading near $82.36, the strikes shown on this page are snapped to the nearest listed TMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMP 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 TMP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.90%), 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 TMP butterfly?
- The breakeven for the TMP 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 TMP market-implied 1-standard-deviation expected move is approximately 10.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TMP?
- Butterflies on TMP are pinning bets - traders use them when they expect TMP 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 TMP implied volatility affect this butterfly?
- TMP ATM IV is at 35.90% with IV rank near 3.50%, 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.