CCB Butterfly Strategy
CCB (Coastal Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations.
CCB (Coastal Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.04B, a trailing P/E of 20.93, a beta of 0.76 versus the broader market, a 52-week range of 66.5-120.05, average daily share volume of 168K, a public-listing history dating back to 2018, approximately 488 full-time employees. These structural characteristics shape how CCB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.76 places CCB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CCB?
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 CCB snapshot
As of May 15, 2026, spot at $68.88, ATM IV 45.20%, IV rank 4.49%, expected move 12.96%. The butterfly on CCB 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 63-day expiry.
Why this butterfly structure on CCB specifically: CCB IV at 45.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a CCB butterfly, with a market-implied 1-standard-deviation move of approximately 12.96% (roughly $8.93 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CCB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CCB should anchor to the underlying notional of $68.88 per share and to the trader's directional view on CCB stock.
CCB butterfly setup
The CCB 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 CCB near $68.88, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CCB chain at a 63-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 CCB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $65.00 | $8.15 |
| Sell 2 | Call | $70.00 | $5.30 |
| Buy 1 | Call | $70.00 | $5.30 |
CCB butterfly risk and reward
- Net Premium / Debit
- -$285.00
- Max Profit (per contract)
- $215.00
- Max Loss (per contract)
- -$285.00
- Breakeven(s)
- $67.85
- Risk / Reward Ratio
- 0.754
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.
CCB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CCB. 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% | -$285.00 |
| $15.24 | -77.9% | -$285.00 |
| $30.47 | -55.8% | -$285.00 |
| $45.70 | -33.7% | -$285.00 |
| $60.92 | -11.5% | -$285.00 |
| $76.15 | +10.6% | +$215.00 |
| $91.38 | +32.7% | +$215.00 |
| $106.61 | +54.8% | +$215.00 |
| $121.84 | +76.9% | +$215.00 |
| $137.07 | +99.0% | +$215.00 |
When traders use butterfly on CCB
Butterflies on CCB are pinning bets - traders use them when they expect CCB 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.
CCB thesis for this butterfly
The market-implied 1-standard-deviation range for CCB extends from approximately $59.95 on the downside to $77.81 on the upside. A CCB long call butterfly is a pinning play: it pays maximum at the middle strike if CCB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CCB IV rank near 4.49% 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 CCB at 45.20%. As a Financial Services name, CCB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CCB-specific events.
CCB 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. CCB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CCB alongside the broader basket even when CCB-specific fundamentals are unchanged. Always rebuild the position from current CCB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CCB?
- A butterfly on CCB is the butterfly strategy applied to CCB (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 CCB stock trading near $68.88, the strikes shown on this page are snapped to the nearest listed CCB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CCB 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 CCB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 45.20%), the computed maximum profit is $215.00 per contract and the computed maximum loss is -$285.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CCB butterfly?
- The breakeven for the CCB butterfly priced on this page is roughly $67.85 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 CCB market-implied 1-standard-deviation expected move is approximately 12.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CCB?
- Butterflies on CCB are pinning bets - traders use them when they expect CCB 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 CCB implied volatility affect this butterfly?
- CCB ATM IV is at 45.20% with IV rank near 4.49%, 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.