CAC Butterfly Strategy
CAC (Camden National Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. It also offers non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the U.S. small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. In addition, the company provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. As of December 31, 2021, the company had 57 branches within Maine; one residential mortgage lending office in Braintree, Massachusetts; two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester; and an online residential mortgage and small commercial digital loan platform, as well as 66 ATMs.
CAC (Camden National Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $803.8M, a trailing P/E of 10.11, a beta of 0.55 versus the broader market, a 52-week range of 35-53.71, average daily share volume of 100K, a public-listing history dating back to 1997, approximately 586 full-time employees. These structural characteristics shape how CAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.55 indicates CAC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.11 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CAC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CAC?
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 CAC snapshot
As of May 15, 2026, spot at $47.36, ATM IV 43.00%, IV rank 28.44%, expected move 12.33%. The butterfly on CAC 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 CAC specifically: CAC IV at 43.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a CAC butterfly, with a market-implied 1-standard-deviation move of approximately 12.33% (roughly $5.84 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 CAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAC should anchor to the underlying notional of $47.36 per share and to the trader's directional view on CAC stock.
CAC butterfly setup
The CAC 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 CAC near $47.36, the first option leg uses a $44.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAC 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 CAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $44.99 | N/A |
| Sell 2 | Call | $47.36 | N/A |
| Buy 1 | Call | $49.73 | N/A |
CAC 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.
CAC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CAC. 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 CAC
Butterflies on CAC are pinning bets - traders use them when they expect CAC 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.
CAC thesis for this butterfly
The market-implied 1-standard-deviation range for CAC extends from approximately $41.52 on the downside to $53.20 on the upside. A CAC long call butterfly is a pinning play: it pays maximum at the middle strike if CAC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CAC IV rank near 28.44% 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 CAC at 43.00%. As a Financial Services name, CAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAC-specific events.
CAC 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. CAC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CAC alongside the broader basket even when CAC-specific fundamentals are unchanged. Always rebuild the position from current CAC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CAC?
- A butterfly on CAC is the butterfly strategy applied to CAC (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 CAC stock trading near $47.36, the strikes shown on this page are snapped to the nearest listed CAC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CAC 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 CAC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.00%), 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 CAC butterfly?
- The breakeven for the CAC 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 CAC market-implied 1-standard-deviation expected move is approximately 12.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CAC?
- Butterflies on CAC are pinning bets - traders use them when they expect CAC 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 CAC implied volatility affect this butterfly?
- CAC ATM IV is at 43.00% with IV rank near 28.44%, 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.