BNL Butterfly Strategy
BNL (Broadstone Net Lease, Inc.), in the Real Estate sector, (REIT - Diversified industry), listed on NYSE.
BNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting. As of September 30, 2020, BNL's diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across the industrial, healthcare, restaurant, office, and retail property types, with an aggregate gross asset value of approximately $4.0 billion.
BNL (Broadstone Net Lease, Inc.) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $3.80B, a trailing P/E of 29.43, a beta of 0.99 versus the broader market, a 52-week range of 15.281-20.475, average daily share volume of 2.7M, a public-listing history dating back to 2020, approximately 73 full-time employees. These structural characteristics shape how BNL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places BNL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BNL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on BNL?
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 BNL snapshot
As of May 15, 2026, spot at $19.84, ATM IV 103.70%, IV rank 19.14%, expected move 29.73%. The butterfly on BNL 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 BNL specifically: BNL IV at 103.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a BNL butterfly, with a market-implied 1-standard-deviation move of approximately 29.73% (roughly $5.90 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 BNL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BNL should anchor to the underlying notional of $19.84 per share and to the trader's directional view on BNL stock.
BNL butterfly setup
The BNL 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 BNL near $19.84, the first option leg uses a $18.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BNL 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 BNL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.85 | N/A |
| Sell 2 | Call | $19.84 | N/A |
| Buy 1 | Call | $20.83 | N/A |
BNL 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.
BNL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BNL. 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 BNL
Butterflies on BNL are pinning bets - traders use them when they expect BNL 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.
BNL thesis for this butterfly
The market-implied 1-standard-deviation range for BNL extends from approximately $13.94 on the downside to $25.74 on the upside. A BNL long call butterfly is a pinning play: it pays maximum at the middle strike if BNL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BNL IV rank near 19.14% 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 BNL at 103.70%. As a Real Estate name, BNL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BNL-specific events.
BNL 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. BNL positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BNL alongside the broader basket even when BNL-specific fundamentals are unchanged. Always rebuild the position from current BNL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BNL?
- A butterfly on BNL is the butterfly strategy applied to BNL (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 BNL stock trading near $19.84, the strikes shown on this page are snapped to the nearest listed BNL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BNL 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 BNL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 103.70%), 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 BNL butterfly?
- The breakeven for the BNL 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 BNL market-implied 1-standard-deviation expected move is approximately 29.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BNL?
- Butterflies on BNL are pinning bets - traders use them when they expect BNL 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 BNL implied volatility affect this butterfly?
- BNL ATM IV is at 103.70% with IV rank near 19.14%, 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.