CHYM Butterfly Strategy
CHYM (Chime Financial, Inc. Class A Common Stock), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Chime Financial, Inc., a financial technology company, provides digital consumer banking and payment solutions in the United States and internationally. The company offers various products, such as spending, including checking accounts, debit cards, ATM and cash deposit networks, paycheck, outbound instant transfer; Chime Plus, a fee-free mobile banking experience; liquidity products, such as SpotMe, MyPay, and Instant Loans; building credit solutions comprising chime card and credit builder credit card, and FICO score tracking; savings and perks products; community focused products, including Pay Anyone and SpotMe Boosts; Enterprise offers Chime Workplace, a suite of financial services and employee benefits tools to their employees; and other support and operations. The company was formerly known as 1Debit Inc. and changed its name to Chime Financial, Inc. in June 2019. Chime Financial, Inc. was incorporated in 2012 and is headquartered in San Francisco, California.
CHYM (Chime Financial, Inc. Class A Common Stock) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $12.66B, a trailing P/E of 159.14, a beta of 0.32 versus the broader market, a 52-week range of 15.88-35.55, average daily share volume of 6.5M, a public-listing history dating back to 2025, approximately 2K full-time employees. These structural characteristics shape how CHYM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.32 indicates CHYM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 159.14 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on CHYM?
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.
CHYM snapshot
As of November 13, 2026, spot at $33.45, ATM IV 48.40%, IV rank 16.51%, expected move 13.88%. The butterfly on CHYM below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 434-day expiry.
Why this butterfly structure on CHYM specifically: CHYM IV at 48.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a CHYM butterfly, with a market-implied 1-standard-deviation move of approximately 13.88% (roughly $4.64 on the underlying). The 434-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHYM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHYM should anchor to the underlying notional of $33.45 per share and to the trader's directional view on CHYM stock.
CHYM butterfly setup
The CHYM butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CHYM at $33.45 on that close, the first option leg uses a $32.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHYM chain at a 434-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 CHYM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $32.50 | $8.85 |
| Sell 2 | Call | $32.50 | $8.85 |
| Buy 1 | Call | $35.00 | $7.75 |
CHYM butterfly risk and reward
- Net Premium / Debit
- +$110.00
- Max Profit (per contract)
- $110.00
- Max Loss (per contract)
- -$140.00
- Breakeven(s)
- $33.60
- Risk / Reward Ratio
- 0.786
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.
CHYM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CHYM. 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% | +$110.00 |
| $7.40 | -77.9% | +$110.00 |
| $14.80 | -55.8% | +$110.00 |
| $22.19 | -33.6% | +$110.00 |
| $29.59 | -11.5% | +$110.00 |
| $36.98 | +10.6% | -$140.00 |
| $44.38 | +32.7% | -$140.00 |
| $51.77 | +54.8% | -$140.00 |
| $59.17 | +76.9% | -$140.00 |
| $66.56 | +99.0% | -$140.00 |
When traders use butterfly on CHYM
Butterflies on CHYM are pinning bets - traders use them when they expect CHYM 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.
CHYM thesis for this butterfly
The market-implied 1-standard-deviation range for CHYM extends from approximately $28.81 on the downside to $38.09 on the upside. A CHYM long call butterfly is a pinning play: it pays maximum at the middle strike if CHYM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CHYM IV rank near 16.51% 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 CHYM at 48.40%. As a Technology name, CHYM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHYM-specific events.
CHYM 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. CHYM positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHYM alongside the broader basket even when CHYM-specific fundamentals are unchanged. Always rebuild the position from current CHYM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CHYM?
- A butterfly on CHYM is the butterfly strategy applied to CHYM (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 CHYM stock at $33.45 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed CHYM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CHYM 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 CHYM butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.40%), the computed maximum profit is $110.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CHYM butterfly?
- The breakeven for the CHYM butterfly priced on this page is roughly $33.60 at expiration, derived from the November 13, 2026 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 CHYM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CHYM?
- Butterflies on CHYM are pinning bets - traders use them when they expect CHYM 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 CHYM implied volatility affect this butterfly?
- CHYM ATM IV is at 48.40% with IV rank near 16.51%, 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.