BTLN Butterfly Strategy
BTLN (Brightline Interactive, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Brightline Interactive, Inc. operates as a technology development company, which engages in the provision of virtual and augmented reality, and spatial computing software and services. The company was founded by Lyron L. Bentovim, Maydan Rothblum, and David J. Smith on June 15, 2016 and is headquartered in New York, NY.
BTLN (Brightline Interactive, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $13.9M, a beta of 1.38 versus the broader market, a 52-week range of 0.42-1.85, average daily share volume of 178K, a public-listing history dating back to 2021, approximately 35 full-time employees. These structural characteristics shape how BTLN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates BTLN 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 BTLN?
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.
BTLN snapshot
As of September 29, 2026, spot at $5.44, ATM IV 450.00%, expected move 129.01%. The butterfly on BTLN 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 17-day expiry.
Why this butterfly structure on BTLN specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BTLN is inferred from ATM IV at 450.00% alone, with a market-implied 1-standard-deviation move of approximately 129.01% (roughly $7.02 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BTLN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTLN should anchor to the underlying notional of $5.44 per share and to the trader's directional view on BTLN stock.
BTLN butterfly setup
The BTLN 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 BTLN at $5.44 on that close, the first option leg uses a $5.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTLN chain at a 17-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 BTLN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.17 | N/A |
| Sell 2 | Call | $5.44 | N/A |
| Buy 1 | Call | $5.71 | N/A |
BTLN 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.
BTLN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BTLN. 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 BTLN
Butterflies on BTLN are pinning bets - traders use them when they expect BTLN 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.
BTLN thesis for this butterfly
The market-implied 1-standard-deviation range for BTLN extends from approximately $-1.58 on the downside to $12.46 on the upside. A BTLN long call butterfly is a pinning play: it pays maximum at the middle strike if BTLN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Technology name, BTLN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTLN-specific events.
BTLN 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. BTLN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BTLN alongside the broader basket even when BTLN-specific fundamentals are unchanged. Always rebuild the position from current BTLN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BTLN?
- A butterfly on BTLN is the butterfly strategy applied to BTLN (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 BTLN stock at $5.44 on the most recent close, the strikes shown on this page are snapped to the nearest listed BTLN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BTLN 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 BTLN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 450.00%), 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 BTLN butterfly?
- The breakeven for the BTLN 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 BTLN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 129.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BTLN?
- Butterflies on BTLN are pinning bets - traders use them when they expect BTLN 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 BTLN implied volatility affect this butterfly?
- Current BTLN ATM IV is 450.00%; IV rank context is unavailable in the current snapshot.