BRBS Butterfly Strategy
BRBS (Blue Ridge Bankshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on AMEX.
Blue Ridge Bankshares, Inc. serves as the holding company for Blue Ridge Bank, National Association, offering a wide array of commercial, consumer, and financial services. Its business operations are structured into distinct Commercial Banking and Mortgage Banking segments. The institution provides various deposit accounts, including checking, savings, money market, cash management, individual retirement accounts (IRAs), and certificates of deposit (CDs). Lending services encompass commercial and industrial loans, residential and commercial mortgages, home equity lines, consumer installment loans, and government-guaranteed financing. Beyond traditional banking, the company furnishes essential services such as wire transfers, direct deposit payroll, remote deposit, payroll processing, and electronic statements, all accessible via online, mobile, and telephone banking platforms. It also offers property and casualty insurance for both individuals and businesses.
BRBS (Blue Ridge Bankshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $331.8M, a trailing P/E of 31.16, a beta of 0.54 versus the broader market, a 52-week range of 3.225-4.785, average daily share volume of 327K, a public-listing history dating back to 2012, approximately 269 full-time employees. These structural characteristics shape how BRBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates BRBS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BRBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on BRBS?
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.
BRBS snapshot
As of August 14, 2026, spot at $3.69, ATM IV 117.50%, IV rank 27.97%, expected move 33.69%. The butterfly on BRBS 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 BRBS specifically: BRBS IV at 117.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a BRBS butterfly, with a market-implied 1-standard-deviation move of approximately 33.69% (roughly $1.24 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 BRBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on BRBS should anchor to the underlying notional of $3.69 per share and to the trader's directional view on BRBS stock.
BRBS butterfly setup
The BRBS 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 BRBS at $3.69 on that close, the first option leg uses a $3.51 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BRBS 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 BRBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.51 | N/A |
| Sell 2 | Call | $3.69 | N/A |
| Buy 1 | Call | $3.87 | N/A |
BRBS 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.
BRBS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BRBS. 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 BRBS
Butterflies on BRBS are pinning bets - traders use them when they expect BRBS 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.
BRBS thesis for this butterfly
The market-implied 1-standard-deviation range for BRBS extends from approximately $2.45 on the downside to $4.93 on the upside. A BRBS long call butterfly is a pinning play: it pays maximum at the middle strike if BRBS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BRBS IV rank near 27.97% 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 BRBS at 117.50%. As a Financial Services name, BRBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BRBS-specific events.
BRBS 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. BRBS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BRBS alongside the broader basket even when BRBS-specific fundamentals are unchanged. Always rebuild the position from current BRBS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BRBS?
- A butterfly on BRBS is the butterfly strategy applied to BRBS (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 BRBS stock at $3.69 on the most recent close, the strikes shown on this page are snapped to the nearest listed BRBS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BRBS 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 BRBS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 117.50%), 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 BRBS butterfly?
- The breakeven for the BRBS 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 BRBS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 33.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BRBS?
- Butterflies on BRBS are pinning bets - traders use them when they expect BRBS 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 BRBS implied volatility affect this butterfly?
- BRBS ATM IV is at 117.50% with IV rank near 27.97%, 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.