CCS Butterfly Strategy
CCS (Century Communities, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.
Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its home buyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 17 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.
CCS (Century Communities, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $1.49B, a trailing P/E of 11.43, a beta of 1.37 versus the broader market, a 52-week range of 50.42-76, average daily share volume of 271K, a public-listing history dating back to 2014, approximately 2K full-time employees. These structural characteristics shape how CCS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.37 indicates CCS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 11.43 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CCS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CCS?
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 CCS snapshot
As of May 15, 2026, spot at $48.17, ATM IV 44.60%, IV rank 37.40%, expected move 12.79%. The butterfly on CCS 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 CCS specifically: CCS IV at 44.60% 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 12.79% (roughly $6.16 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 CCS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CCS should anchor to the underlying notional of $48.17 per share and to the trader's directional view on CCS stock.
CCS butterfly setup
The CCS 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 CCS near $48.17, the first option leg uses a $45.76 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CCS 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 CCS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $45.76 | N/A |
| Sell 2 | Call | $48.17 | N/A |
| Buy 1 | Call | $50.58 | N/A |
CCS 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.
CCS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CCS. 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 CCS
Butterflies on CCS are pinning bets - traders use them when they expect CCS 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.
CCS thesis for this butterfly
The market-implied 1-standard-deviation range for CCS extends from approximately $42.01 on the downside to $54.33 on the upside. A CCS long call butterfly is a pinning play: it pays maximum at the middle strike if CCS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CCS IV rank near 37.40% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CCS should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, CCS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CCS-specific events.
CCS 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. CCS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CCS alongside the broader basket even when CCS-specific fundamentals are unchanged. Always rebuild the position from current CCS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CCS?
- A butterfly on CCS is the butterfly strategy applied to CCS (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 CCS stock trading near $48.17, the strikes shown on this page are snapped to the nearest listed CCS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CCS 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 CCS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.60%), 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 CCS butterfly?
- The breakeven for the CCS 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 CCS market-implied 1-standard-deviation expected move is approximately 12.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CCS?
- Butterflies on CCS are pinning bets - traders use them when they expect CCS 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 CCS implied volatility affect this butterfly?
- CCS ATM IV is at 44.60% with IV rank near 37.40%, 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.