ACR Butterfly Strategy
ACR (ACRES Commercial Realty Corp.), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
ACRES Commercial Realty Corp. (ACR) functions as a real estate investment trust (REIT) based in Uniondale, New York, having been established in 2005. The firm's primary objective is to generate, own, and administer various debt instruments related to commercial real estate, including mortgage loans, throughout the United States. ACR strategically allocates capital to a diverse range of assets tied to commercial properties. These investments encompass both variable and fixed-rate first lien mortgage loans, senior and junior participations in first mortgage loans, mezzanine financing, preferred equity investments, commercial mortgage-backed securities (CMBS), and direct equity or preferred equity stakes in commercial real estate. As a certified REIT for federal income tax purposes, the company typically avoids federal corporate income tax, contingent on distributing 100% of its taxable REIT income. Notably, the entity updated its legal name to ACRES Commercial Realty Corp. in February 2021, having previously been known as Exantas Capital Corp.
ACR (ACRES Commercial Realty Corp.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $100.6M, a trailing P/E of 6.76, a beta of 1.09 versus the broader market, a 52-week range of 14.06-24.61, average daily share volume of 29K, a public-listing history dating back to 2006, approximately 4 full-time employees. These structural characteristics shape how ACR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places ACR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.76 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ACR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ACR?
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.
ACR snapshot
As of August 14, 2026, spot at $14.39, ATM IV 90.20%, IV rank 16.49%, expected move 25.86%. The butterfly on ACR 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 ACR specifically: ACR IV at 90.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ACR butterfly, with a market-implied 1-standard-deviation move of approximately 25.86% (roughly $3.72 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 ACR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACR should anchor to the underlying notional of $14.39 per share and to the trader's directional view on ACR stock.
ACR butterfly setup
The ACR 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 ACR at $14.39 on that close, the first option leg uses a $13.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACR 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 ACR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.67 | N/A |
| Sell 2 | Call | $14.39 | N/A |
| Buy 1 | Call | $15.11 | N/A |
ACR 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.
ACR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ACR. 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 ACR
Butterflies on ACR are pinning bets - traders use them when they expect ACR 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.
ACR thesis for this butterfly
The market-implied 1-standard-deviation range for ACR extends from approximately $10.67 on the downside to $18.11 on the upside. A ACR long call butterfly is a pinning play: it pays maximum at the middle strike if ACR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ACR IV rank near 16.49% 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 ACR at 90.20%. As a Real Estate name, ACR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACR-specific events.
ACR 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. ACR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACR alongside the broader basket even when ACR-specific fundamentals are unchanged. Always rebuild the position from current ACR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ACR?
- A butterfly on ACR is the butterfly strategy applied to ACR (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 ACR stock at $14.39 on the most recent close, the strikes shown on this page are snapped to the nearest listed ACR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ACR 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 ACR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 90.20%), 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 ACR butterfly?
- The breakeven for the ACR 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 ACR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ACR?
- Butterflies on ACR are pinning bets - traders use them when they expect ACR 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 ACR implied volatility affect this butterfly?
- ACR ATM IV is at 90.20% with IV rank near 16.49%, 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.