BLKB Butterfly Strategy
BLKB (Blackbaud, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Blackbaud, Inc. provides cloud software solutions to higher education institutions, K12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents in the United States and internationally. The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, JustGiving, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; organizational and program management, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services. It sells its solutions and related services through its direct sales force. Blackbaud, Inc. was founded in 1981 and is headquartered in Charleston, South Carolina.
BLKB (Blackbaud, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $1.44B, a trailing P/E of 10.11, a beta of 1.09 versus the broader market, a 52-week range of 30.97-74.88, average daily share volume of 589K, a public-listing history dating back to 2004, approximately 3K full-time employees. These structural characteristics shape how BLKB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places BLKB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.11 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on BLKB?
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 BLKB snapshot
As of May 15, 2026, spot at $30.75, ATM IV 39.90%, IV rank 12.40%, expected move 11.44%. The butterfly on BLKB 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 BLKB specifically: BLKB IV at 39.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a BLKB butterfly, with a market-implied 1-standard-deviation move of approximately 11.44% (roughly $3.52 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 BLKB expiries trade a higher absolute premium for lower per-day decay. Position sizing on BLKB should anchor to the underlying notional of $30.75 per share and to the trader's directional view on BLKB stock.
BLKB butterfly setup
The BLKB 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 BLKB near $30.75, the first option leg uses a $29.21 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BLKB 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 BLKB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.21 | N/A |
| Sell 2 | Call | $30.75 | N/A |
| Buy 1 | Call | $32.29 | N/A |
BLKB 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.
BLKB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BLKB. 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 BLKB
Butterflies on BLKB are pinning bets - traders use them when they expect BLKB 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.
BLKB thesis for this butterfly
The market-implied 1-standard-deviation range for BLKB extends from approximately $27.23 on the downside to $34.27 on the upside. A BLKB long call butterfly is a pinning play: it pays maximum at the middle strike if BLKB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BLKB IV rank near 12.40% 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 BLKB at 39.90%. As a Technology name, BLKB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BLKB-specific events.
BLKB 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. BLKB positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BLKB alongside the broader basket even when BLKB-specific fundamentals are unchanged. Always rebuild the position from current BLKB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BLKB?
- A butterfly on BLKB is the butterfly strategy applied to BLKB (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 BLKB stock trading near $30.75, the strikes shown on this page are snapped to the nearest listed BLKB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BLKB 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 BLKB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 39.90%), 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 BLKB butterfly?
- The breakeven for the BLKB 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 BLKB market-implied 1-standard-deviation expected move is approximately 11.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BLKB?
- Butterflies on BLKB are pinning bets - traders use them when they expect BLKB 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 BLKB implied volatility affect this butterfly?
- BLKB ATM IV is at 39.90% with IV rank near 12.40%, 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.