CBRE Butterfly Strategy
CBRE (CBRE Group, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The company operates through Advisory Services, Building Operations and Experience, Project Management, and Real Estate Investments segments. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, lease administration, accounting, investment reporting services, financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors and development services, such as real estate development and investment activities under the Trammell Crow Company brand to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.
CBRE (CBRE Group, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $40.23B, a trailing P/E of 30.82, a beta of 1.22 versus the broader market, a 52-week range of 121.69-174.27, average daily share volume of 2.3M, a public-listing history dating back to 2004, approximately 155K full-time employees. These structural characteristics shape how CBRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places CBRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CBRE?
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 CBRE snapshot
As of June 30, 2026, spot at $134.90, ATM IV 34.80%, IV rank 36.90%, expected move 9.98%. The butterfly on CBRE 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 17-day expiry.
Why this butterfly structure on CBRE specifically: CBRE IV at 34.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.98% (roughly $13.46 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 CBRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBRE should anchor to the underlying notional of $134.90 per share and to the trader's directional view on CBRE stock.
CBRE butterfly setup
The CBRE 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 CBRE near $134.90, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBRE 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 CBRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $130.00 | $7.15 |
| Sell 2 | Call | $135.00 | $4.00 |
| Buy 1 | Call | $140.00 | $2.18 |
CBRE butterfly risk and reward
- Net Premium / Debit
- -$132.50
- Max Profit (per contract)
- $309.21
- Max Loss (per contract)
- -$132.50
- Breakeven(s)
- $131.33, $138.68
- Risk / Reward Ratio
- 2.334
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.
CBRE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CBRE. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$132.50 |
| $29.84 | -77.9% | -$132.50 |
| $59.66 | -55.8% | -$132.50 |
| $89.49 | -33.7% | -$132.50 |
| $119.31 | -11.6% | -$132.50 |
| $149.14 | +10.6% | -$132.50 |
| $178.97 | +32.7% | -$132.50 |
| $208.79 | +54.8% | -$132.50 |
| $238.62 | +76.9% | -$132.50 |
| $268.44 | +99.0% | -$132.50 |
When traders use butterfly on CBRE
Butterflies on CBRE are pinning bets - traders use them when they expect CBRE 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.
CBRE thesis for this butterfly
The market-implied 1-standard-deviation range for CBRE extends from approximately $121.44 on the downside to $148.36 on the upside. A CBRE long call butterfly is a pinning play: it pays maximum at the middle strike if CBRE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CBRE IV rank near 36.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CBRE should anchor more to the directional view and the expected-move geometry. As a Real Estate name, CBRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBRE-specific events.
CBRE 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. CBRE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBRE alongside the broader basket even when CBRE-specific fundamentals are unchanged. Always rebuild the position from current CBRE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CBRE?
- A butterfly on CBRE is the butterfly strategy applied to CBRE (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 CBRE stock trading near $134.90, the strikes shown on this page are snapped to the nearest listed CBRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CBRE 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 CBRE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is $309.21 per contract and the computed maximum loss is -$132.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CBRE butterfly?
- The breakeven for the CBRE butterfly priced on this page is roughly $131.33 and $138.68 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 CBRE market-implied 1-standard-deviation expected move is approximately 9.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CBRE?
- Butterflies on CBRE are pinning bets - traders use them when they expect CBRE 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 CBRE implied volatility affect this butterfly?
- CBRE ATM IV is at 34.80% with IV rank near 36.90%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.