CLAR Butterfly Strategy
CLAR (Clarus Corporation), in the Consumer Cyclical sector, (Leisure industry), listed on NASDAQ.
Clarus Corporation is a global enterprise specializing in the design, production, and supply of outdoor gear and lifestyle goods for consumer markets spanning the United States, Canada, Europe, the Middle East, Asia, Australia, New Zealand, Africa, and South America. Its Outdoor division provides a comprehensive suite of products catering to activities like climbing, mountaineering, trail running, backpacking, and skiing. Offerings include performance-oriented apparel such as shells, insulation, mid-layers, pants, and branded clothing; an extensive range of rock and ice climbing equipment like carabiners, protective devices, harnesses, belay tools, helmets, and specialized ice climbing apparatus; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; skincare items; and critical snow safety products such as avalanche airbag systems, transceivers, shovels, and probes, alongside skis, poles, and skins. Key brands within this segment are Black Diamond Equipment, PIEPS, and SKINourishment. The company's Precision Sport segment is dedicated to manufacturing high-quality bullets and ammunition. These products serve the distinct requirements of precision target shooters, hunters, and military and law enforcement professionals, marketed under the Sierra and Barnes brands.
CLAR (Clarus Corporation) trades in the Consumer Cyclical sector, specifically Leisure, with a market capitalization of approximately $140.3M, a beta of 1.06 versus the broader market, a 52-week range of 2.53-4.03, average daily share volume of 241K, a public-listing history dating back to 1998, approximately 390 full-time employees. These structural characteristics shape how CLAR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places CLAR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CLAR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CLAR?
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.
CLAR snapshot
As of August 14, 2026, spot at $3.62, ATM IV 22.60%, IV rank 2.00%, expected move 6.48%. The butterfly on CLAR 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 CLAR specifically: CLAR IV at 22.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CLAR butterfly, with a market-implied 1-standard-deviation move of approximately 6.48% (roughly $0.23 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 CLAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLAR should anchor to the underlying notional of $3.62 per share and to the trader's directional view on CLAR stock.
CLAR butterfly setup
The CLAR 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 CLAR at $3.62 on that close, the first option leg uses a $3.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLAR 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 CLAR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.44 | N/A |
| Sell 2 | Call | $3.62 | N/A |
| Buy 1 | Call | $3.80 | N/A |
CLAR 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.
CLAR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CLAR. 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 CLAR
Butterflies on CLAR are pinning bets - traders use them when they expect CLAR 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.
CLAR thesis for this butterfly
The market-implied 1-standard-deviation range for CLAR extends from approximately $3.39 on the downside to $3.85 on the upside. A CLAR long call butterfly is a pinning play: it pays maximum at the middle strike if CLAR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CLAR IV rank near 2.00% 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 CLAR at 22.60%. As a Consumer Cyclical name, CLAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLAR-specific events.
CLAR 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. CLAR positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CLAR alongside the broader basket even when CLAR-specific fundamentals are unchanged. Always rebuild the position from current CLAR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CLAR?
- A butterfly on CLAR is the butterfly strategy applied to CLAR (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 CLAR stock at $3.62 on the most recent close, the strikes shown on this page are snapped to the nearest listed CLAR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CLAR 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 CLAR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.60%), 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 CLAR butterfly?
- The breakeven for the CLAR 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 CLAR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CLAR?
- Butterflies on CLAR are pinning bets - traders use them when they expect CLAR 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 CLAR implied volatility affect this butterfly?
- CLAR ATM IV is at 22.60% with IV rank near 2.00%, 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.