CNNE Butterfly Strategy
CNNE (Cannae Holdings, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NYSE.
Cannae Holdings, Inc. operates as a core investment enterprise. This firm primarily funnels capital into a range of sectors, including the restaurant industry, technology-driven healthcare services, and various financial ventures. Its investment approach involves securing both controlling interests and non-dominant equity positions. The company's headquarters are located in Las Vegas, Nevada.
CNNE (Cannae Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $660.0M, a beta of 1.22 versus the broader market, a 52-week range of 10.46-19.88, average daily share volume of 487K, a public-listing history dating back to 2017, approximately 7K full-time employees. These structural characteristics shape how CNNE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places CNNE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNNE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CNNE?
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.
CNNE snapshot
As of August 14, 2026, spot at $14.77, ATM IV 89.10%, IV rank 14.85%, expected move 25.54%. The butterfly on CNNE 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 CNNE specifically: CNNE IV at 89.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a CNNE butterfly, with a market-implied 1-standard-deviation move of approximately 25.54% (roughly $3.77 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 CNNE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNNE should anchor to the underlying notional of $14.77 per share and to the trader's directional view on CNNE stock.
CNNE butterfly setup
The CNNE 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 CNNE at $14.77 on that close, the first option leg uses a $14.03 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNNE 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 CNNE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.03 | N/A |
| Sell 2 | Call | $14.77 | N/A |
| Buy 1 | Call | $15.51 | N/A |
CNNE 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.
CNNE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CNNE. 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 CNNE
Butterflies on CNNE are pinning bets - traders use them when they expect CNNE 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.
CNNE thesis for this butterfly
The market-implied 1-standard-deviation range for CNNE extends from approximately $11.00 on the downside to $18.54 on the upside. A CNNE long call butterfly is a pinning play: it pays maximum at the middle strike if CNNE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CNNE IV rank near 14.85% 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 CNNE at 89.10%. As a Consumer Cyclical name, CNNE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNNE-specific events.
CNNE 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. CNNE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNNE alongside the broader basket even when CNNE-specific fundamentals are unchanged. Always rebuild the position from current CNNE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CNNE?
- A butterfly on CNNE is the butterfly strategy applied to CNNE (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 CNNE stock at $14.77 on the most recent close, the strikes shown on this page are snapped to the nearest listed CNNE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CNNE 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 CNNE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 89.10%), 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 CNNE butterfly?
- The breakeven for the CNNE 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 CNNE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CNNE?
- Butterflies on CNNE are pinning bets - traders use them when they expect CNNE 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 CNNE implied volatility affect this butterfly?
- CNNE ATM IV is at 89.10% with IV rank near 14.85%, 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.