CD Butterfly Strategy
CD (Chaince Digital Holdings Inc.), in the Financial Services sector, (Investment - Banking & Investment Services industry), listed on NASDAQ.
Chaince Digital Holdings Inc. engages in providing financial and advisory services in the North America, Greater China, Southeast Asia, Hong Kong, Singapore, Malaysia, and the United States. The company offers industry advisory and consulting services, such as corporate restructuring, capital markets preparation, regulatory compliance, and business expansion strategies; IPO-related financial advisory and consulting services, including transaction structuring, preparation for regulatory filings, coordination with underwriters and professional advisors, and strategic capital markets advisory; and private investment in public equity advisory and placement-related services comprising identifying potential investors, assisting in transaction structuring, and coordinating the placement process. It also provides transaction execution and brokerage, clearing-related brokerage, referral, and escrow agent services. The company was formerly known as Mercurity Fintech Holding Inc. and changed its name to Chaince Digital Holdings Inc. in November 2025. Chaince Digital Holdings Inc. was incorporated in 2011 and is headquartered in New York, New York.
CD (Chaince Digital Holdings Inc.) trades in the Financial Services sector, specifically Investment - Banking & Investment Services, with a market capitalization of approximately $314.6M, a beta of 8.59 versus the broader market, a 52-week range of 2.1-36.77, average daily share volume of 225K, a public-listing history dating back to 2015, approximately 13 full-time employees. These structural characteristics shape how CD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 8.59 indicates CD 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 CD?
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.
CD snapshot
As of August 14, 2026, spot at $3.96, ATM IV 195.60%, IV rank 50.30%, expected move 56.08%. The butterfly on CD 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 CD specifically: CD IV at 195.60% 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 56.08% (roughly $2.22 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 CD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CD should anchor to the underlying notional of $3.96 per share and to the trader's directional view on CD stock.
CD butterfly setup
The CD 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 CD at $3.96 on that close, the first option leg uses a $3.76 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CD 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 CD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.76 | N/A |
| Sell 2 | Call | $3.96 | N/A |
| Buy 1 | Call | $4.16 | N/A |
CD 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.
CD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CD. 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 CD
Butterflies on CD are pinning bets - traders use them when they expect CD 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.
CD thesis for this butterfly
The market-implied 1-standard-deviation range for CD extends from approximately $1.74 on the downside to $6.18 on the upside. A CD long call butterfly is a pinning play: it pays maximum at the middle strike if CD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CD IV rank near 50.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CD should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CD-specific events.
CD 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. CD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CD alongside the broader basket even when CD-specific fundamentals are unchanged. Always rebuild the position from current CD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CD?
- A butterfly on CD is the butterfly strategy applied to CD (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 CD stock at $3.96 on the most recent close, the strikes shown on this page are snapped to the nearest listed CD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CD 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 CD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 195.60%), 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 CD butterfly?
- The breakeven for the CD 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 CD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 56.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CD?
- Butterflies on CD are pinning bets - traders use them when they expect CD 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 CD implied volatility affect this butterfly?
- CD ATM IV is at 195.60% with IV rank near 50.30%, 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.