CBAT Butterfly Strategy
CBAT (CBAK Energy Technology, Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
CBAK Energy Technology, Inc. engages in the manufacture, commercialization, and distribution of lithium-ion rechargeable batteries. Its products are used for electronic vehicles, light electric vehicles, electric tools, energy storage, uninterruptible power supply, and high-power applications. It operates through the CBAK and Hitrans segments. The CBAK segment mainly includes the manufacture, commercialization and distribution of a wide variety of standard and customized lithium-ion rechargeable batteries for use in a wide array of applications. The Hitrans segment covers the development and manufacturing of NCM precursor and cathode materials. The company was founded on October 4, 1999 and is headquartered in Dalian, China.
CBAT (CBAK Energy Technology, Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $69.8M, a beta of 1.36 versus the broader market, a 52-week range of 0.46-1.24, average daily share volume of 142K, a public-listing history dating back to 2005, approximately 2K full-time employees. These structural characteristics shape how CBAT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.36 indicates CBAT 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 CBAT?
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.
CBAT snapshot
As of August 14, 2026, spot at $0.72, ATM IV 24.00%, IV rank 4.35%, expected move 6.88%. The butterfly on CBAT 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 CBAT specifically: CBAT IV at 24.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a CBAT butterfly, with a market-implied 1-standard-deviation move of approximately 6.88% (roughly $0.05 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 CBAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBAT should anchor to the underlying notional of $0.72 per share and to the trader's directional view on CBAT stock.
CBAT butterfly setup
The CBAT 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 CBAT at $0.72 on that close, the first option leg uses a $0.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBAT 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 CBAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.68 | N/A |
| Sell 2 | Call | $0.72 | N/A |
| Buy 1 | Call | $0.76 | N/A |
CBAT 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.
CBAT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CBAT. 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 CBAT
Butterflies on CBAT are pinning bets - traders use them when they expect CBAT 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.
CBAT thesis for this butterfly
The market-implied 1-standard-deviation range for CBAT extends from approximately $0.67 on the downside to $0.77 on the upside. A CBAT long call butterfly is a pinning play: it pays maximum at the middle strike if CBAT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CBAT IV rank near 4.35% 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 CBAT at 24.00%. As a Industrials name, CBAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBAT-specific events.
CBAT 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. CBAT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBAT alongside the broader basket even when CBAT-specific fundamentals are unchanged. Always rebuild the position from current CBAT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CBAT?
- A butterfly on CBAT is the butterfly strategy applied to CBAT (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 CBAT stock at $0.72 on the most recent close, the strikes shown on this page are snapped to the nearest listed CBAT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CBAT 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 CBAT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.00%), 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 CBAT butterfly?
- The breakeven for the CBAT 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 CBAT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CBAT?
- Butterflies on CBAT are pinning bets - traders use them when they expect CBAT 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 CBAT implied volatility affect this butterfly?
- CBAT ATM IV is at 24.00% with IV rank near 4.35%, 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.