XMAX Butterfly Strategy
XMAX (XMAX, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NASDAQ.
XMAX, Inc. focuses on the creation, manufacturing, and promotion of contemporary household furniture. The company offers a wide array of products, including collections for living rooms, urban-style dining spaces, bedrooms, and their unique 'nova qwik' series. These items are sold under several brand names, specifically Nova LifeStyle, Diamond Sofa, and Nova Living. The firm was established in 1992 by Ya Ming Wong and Yuen Ching Ho, and its primary operations are based in Commerce, California.
XMAX (XMAX, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $566.7M, a beta of 1.24 versus the broader market, a 52-week range of 7.77-9.34, average daily share volume of 1.3M, a public-listing history dating back to 2026, approximately 22 full-time employees. These structural characteristics shape how XMAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places XMAX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on XMAX?
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.
XMAX snapshot
As of August 14, 2026, spot at $9.04, ATM IV 141.20%, expected move 40.48%. The butterfly on XMAX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on XMAX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for XMAX is inferred from ATM IV at 141.20% alone, with a market-implied 1-standard-deviation move of approximately 40.48% (roughly $3.66 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XMAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on XMAX should anchor to the underlying notional of $9.04 per share and to the trader's directional view on XMAX stock.
XMAX butterfly setup
The XMAX 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 XMAX at $9.04 on that close, the first option leg uses a $8.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XMAX chain at a 35-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 XMAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.59 | N/A |
| Sell 2 | Call | $9.04 | N/A |
| Buy 1 | Call | $9.49 | N/A |
XMAX 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.
XMAX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on XMAX. 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 XMAX
Butterflies on XMAX are pinning bets - traders use them when they expect XMAX 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.
XMAX thesis for this butterfly
The market-implied 1-standard-deviation range for XMAX extends from approximately $5.38 on the downside to $12.70 on the upside. A XMAX long call butterfly is a pinning play: it pays maximum at the middle strike if XMAX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Consumer Cyclical name, XMAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XMAX-specific events.
XMAX 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. XMAX positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XMAX alongside the broader basket even when XMAX-specific fundamentals are unchanged. Always rebuild the position from current XMAX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on XMAX?
- A butterfly on XMAX is the butterfly strategy applied to XMAX (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 XMAX stock at $9.04 on the most recent close, the strikes shown on this page are snapped to the nearest listed XMAX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are XMAX 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 XMAX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 141.20%), 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 XMAX butterfly?
- The breakeven for the XMAX butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XMAX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 40.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on XMAX?
- Butterflies on XMAX are pinning bets - traders use them when they expect XMAX 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 XMAX implied volatility affect this butterfly?
- Current XMAX ATM IV is 141.20%; IV rank context is unavailable in the current snapshot.