CHPT Butterfly Strategy
CHPT (ChargePoint Holdings, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NYSE.
ChargePoint Holdings, Inc. operates by developing and supplying extensive electric vehicle (EV) charging networks and comprehensive charging solutions, serving both the United States and global markets. The company provides a varied array of hardware, sophisticated software platforms, and supporting services, catering to a broad client base including commercial businesses, fleet operators, and private residential users. Established in 2007, ChargePoint's corporate headquarters are located in Campbell, California.
CHPT (ChargePoint Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $144.2M, a beta of 1.70 versus the broader market, a 52-week range of 4.44-14.92, average daily share volume of 601K, a public-listing history dating back to 2019, approximately 1K full-time employees. These structural characteristics shape how CHPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.70 indicates CHPT 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 CHPT?
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 CHPT snapshot
As of June 30, 2026, spot at $5.95, ATM IV 94.20%, IV rank 21.42%, expected move 27.01%. The butterfly on CHPT 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 CHPT specifically: CHPT IV at 94.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a CHPT butterfly, with a market-implied 1-standard-deviation move of approximately 27.01% (roughly $1.61 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 CHPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHPT should anchor to the underlying notional of $5.95 per share and to the trader's directional view on CHPT stock.
CHPT butterfly setup
The CHPT 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 CHPT near $5.95, the first option leg uses a $5.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHPT 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 CHPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.65 | N/A |
| Sell 2 | Call | $5.95 | N/A |
| Buy 1 | Call | $6.25 | N/A |
CHPT 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.
CHPT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CHPT. 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 CHPT
Butterflies on CHPT are pinning bets - traders use them when they expect CHPT 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.
CHPT thesis for this butterfly
The market-implied 1-standard-deviation range for CHPT extends from approximately $4.34 on the downside to $7.56 on the upside. A CHPT long call butterfly is a pinning play: it pays maximum at the middle strike if CHPT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CHPT IV rank near 21.42% 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 CHPT at 94.20%. As a Consumer Cyclical name, CHPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHPT-specific events.
CHPT 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. CHPT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHPT alongside the broader basket even when CHPT-specific fundamentals are unchanged. Always rebuild the position from current CHPT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CHPT?
- A butterfly on CHPT is the butterfly strategy applied to CHPT (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 CHPT stock trading near $5.95, the strikes shown on this page are snapped to the nearest listed CHPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHPT 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 CHPT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 94.20%), 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 CHPT butterfly?
- The breakeven for the CHPT 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 CHPT market-implied 1-standard-deviation expected move is approximately 27.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CHPT?
- Butterflies on CHPT are pinning bets - traders use them when they expect CHPT 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 CHPT implied volatility affect this butterfly?
- CHPT ATM IV is at 94.20% with IV rank near 21.42%, 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.