BLMN Butterfly Strategy
BLMN (Bloomin' Brands, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. The company operates through two segments, U.S. and International. Its restaurant portfolio has four concepts, including Outback Steakhouse, a casual steakhouse restaurant; Carrabba's Italian Grill, a casual Italian restaurant; Bonefish Grill; and Fleming's Prime Steakhouse & Wine Bar, a contemporary steakhouse. As of December 26, 2021, the company owned and operated 1,013 full-service restaurants and franchised 157 restaurants across 47 states; and 156 full-service restaurants and franchised 172 restaurants across 17 countries and Guam. The company was founded in 1988 and is based in Tampa, Florida.
BLMN (Bloomin' Brands, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $708.9M, a trailing P/E of 32.48, a beta of 1.09 versus the broader market, a 52-week range of 5.19-10.7, average daily share volume of 3.1M, a public-listing history dating back to 2012, approximately 81K full-time employees. These structural characteristics shape how BLMN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places BLMN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BLMN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on BLMN?
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 BLMN snapshot
As of May 15, 2026, spot at $8.05, ATM IV 60.80%, IV rank 15.33%, expected move 17.43%. The butterfly on BLMN 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 BLMN specifically: BLMN IV at 60.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a BLMN butterfly, with a market-implied 1-standard-deviation move of approximately 17.43% (roughly $1.40 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 BLMN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BLMN should anchor to the underlying notional of $8.05 per share and to the trader's directional view on BLMN stock.
BLMN butterfly setup
The BLMN 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 BLMN near $8.05, the first option leg uses a $7.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BLMN 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 BLMN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.65 | N/A |
| Sell 2 | Call | $8.05 | N/A |
| Buy 1 | Call | $8.45 | N/A |
BLMN 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.
BLMN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BLMN. 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 BLMN
Butterflies on BLMN are pinning bets - traders use them when they expect BLMN 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.
BLMN thesis for this butterfly
The market-implied 1-standard-deviation range for BLMN extends from approximately $6.65 on the downside to $9.45 on the upside. A BLMN long call butterfly is a pinning play: it pays maximum at the middle strike if BLMN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BLMN IV rank near 15.33% 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 BLMN at 60.80%. As a Consumer Cyclical name, BLMN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BLMN-specific events.
BLMN 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. BLMN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BLMN alongside the broader basket even when BLMN-specific fundamentals are unchanged. Always rebuild the position from current BLMN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BLMN?
- A butterfly on BLMN is the butterfly strategy applied to BLMN (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 BLMN stock trading near $8.05, the strikes shown on this page are snapped to the nearest listed BLMN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BLMN 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 BLMN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.80%), 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 BLMN butterfly?
- The breakeven for the BLMN 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 BLMN market-implied 1-standard-deviation expected move is approximately 17.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BLMN?
- Butterflies on BLMN are pinning bets - traders use them when they expect BLMN 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 BLMN implied volatility affect this butterfly?
- BLMN ATM IV is at 60.80% with IV rank near 15.33%, 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.