CNDT Butterfly Strategy
CNDT (Conduent Incorporated), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.
Conduent Incorporated delivers a range of business process services, leveraging expertise in handling high-volume transactions, data analysis, and automated systems across North America, Europe, and other global markets. The company's operations are organized into three primary divisions: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment caters to a diverse array of businesses, furnishing them with tailored business process solutions. These include managing customer interactions, processing transactions, and providing services related to healthcare, human resources, and professional learning. Its Government Services arm specializes in delivering government-focused business process support to federal, state, local, and international public sector entities. This encompasses services for public aid, program oversight, processing payments and transactions, medical and fiscal agent care management, public healthcare programs, various payment systems, child welfare support, and other federal initiatives.
CNDT (Conduent Incorporated) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $204.7M, a beta of 1.43 versus the broader market, a 52-week range of 1.15-2.98, average daily share volume of 1.3M, a public-listing history dating back to 2016, approximately 53K full-time employees. These structural characteristics shape how CNDT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates CNDT 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 CNDT?
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 CNDT snapshot
As of June 30, 2026, spot at $1.45, ATM IV 275.70%, IV rank 57.72%, expected move 79.04%. The butterfly on CNDT 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 CNDT specifically: CNDT IV at 275.70% 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 79.04% (roughly $1.15 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 CNDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNDT should anchor to the underlying notional of $1.45 per share and to the trader's directional view on CNDT stock.
CNDT butterfly setup
The CNDT 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 CNDT near $1.45, the first option leg uses a $1.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNDT 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 CNDT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.38 | N/A |
| Sell 2 | Call | $1.45 | N/A |
| Buy 1 | Call | $1.52 | N/A |
CNDT 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.
CNDT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CNDT. 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 CNDT
Butterflies on CNDT are pinning bets - traders use them when they expect CNDT 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.
CNDT thesis for this butterfly
The market-implied 1-standard-deviation range for CNDT extends from approximately $0.30 on the downside to $2.60 on the upside. A CNDT long call butterfly is a pinning play: it pays maximum at the middle strike if CNDT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CNDT IV rank near 57.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CNDT should anchor more to the directional view and the expected-move geometry. As a Technology name, CNDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNDT-specific events.
CNDT 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. CNDT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNDT alongside the broader basket even when CNDT-specific fundamentals are unchanged. Always rebuild the position from current CNDT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CNDT?
- A butterfly on CNDT is the butterfly strategy applied to CNDT (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 CNDT stock trading near $1.45, the strikes shown on this page are snapped to the nearest listed CNDT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNDT 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 CNDT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 275.70%), 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 CNDT butterfly?
- The breakeven for the CNDT 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 CNDT market-implied 1-standard-deviation expected move is approximately 79.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CNDT?
- Butterflies on CNDT are pinning bets - traders use them when they expect CNDT 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 CNDT implied volatility affect this butterfly?
- CNDT ATM IV is at 275.70% with IV rank near 57.72%, 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.