BLZE Butterfly Strategy
BLZE (Backblaze, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Backblaze, Inc. functions as a cloud storage provider, delivering comprehensive online services for businesses and individual consumers to securely store, manage, and access their data globally. The company's cloud solutions are underpinned by a highly scalable software infrastructure built upon cost-effective, commercial-grade hardware. One of its flagship offerings is Backblaze B2 Cloud Storage, a versatile service empowering clients to store data, developers to construct applications, and partners to enhance their service portfolios. This consumption-based Infrastructure-as-a-Service (IaaS) supports a range of functionalities, including data backups, multi-cloud environments, application development, and robust ransomware defense. Furthermore, Backblaze offers Computer Backup, an automated subscription-based Software-as-a-Service (SaaS) that safeguards data on laptops and desktops for both corporate and personal use. This service facilitates routine computer backups, offers protection against ransomware, mitigates risks from theft and loss, and provides remote access capabilities.
BLZE (Backblaze, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.16B, a beta of 1.57 versus the broader market, a 52-week range of 3.261-23.99, average daily share volume of 2.9M, a public-listing history dating back to 2021, approximately 320 full-time employees. These structural characteristics shape how BLZE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates BLZE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on BLZE?
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.
BLZE snapshot
As of August 14, 2026, spot at $18.88, ATM IV 95.90%, IV rank 52.98%, expected move 27.49%. The butterfly on BLZE 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 BLZE specifically: BLZE IV at 95.90% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 27.49% (roughly $5.19 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 BLZE expiries trade a higher absolute premium for lower per-day decay. Position sizing on BLZE should anchor to the underlying notional of $18.88 per share and to the trader's directional view on BLZE stock.
BLZE butterfly setup
The BLZE 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 BLZE at $18.88 on that close, the first option leg uses a $17.94 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BLZE 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 BLZE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.94 | N/A |
| Sell 2 | Call | $18.88 | N/A |
| Buy 1 | Call | $19.82 | N/A |
BLZE 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.
BLZE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BLZE. 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 BLZE
Butterflies on BLZE are pinning bets - traders use them when they expect BLZE 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.
BLZE thesis for this butterfly
The market-implied 1-standard-deviation range for BLZE extends from approximately $13.69 on the downside to $24.07 on the upside. A BLZE long call butterfly is a pinning play: it pays maximum at the middle strike if BLZE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BLZE IV rank near 52.98% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BLZE should anchor more to the directional view and the expected-move geometry. As a Technology name, BLZE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BLZE-specific events.
BLZE 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. BLZE positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BLZE alongside the broader basket even when BLZE-specific fundamentals are unchanged. Always rebuild the position from current BLZE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BLZE?
- A butterfly on BLZE is the butterfly strategy applied to BLZE (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 BLZE stock at $18.88 on the most recent close, the strikes shown on this page are snapped to the nearest listed BLZE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BLZE 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 BLZE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 95.90%), 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 BLZE butterfly?
- The breakeven for the BLZE 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 BLZE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BLZE?
- Butterflies on BLZE are pinning bets - traders use them when they expect BLZE 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 BLZE implied volatility affect this butterfly?
- BLZE ATM IV is at 95.90% with IV rank near 52.98%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.