CNNE Butterfly Strategy
CNNE (Cannae Holdings, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NYSE.
Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. is based in Las Vegas, Nevada.
CNNE (Cannae Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $699.0M, a beta of 1.19 versus the broader market, a 52-week range of 10.46-21.96, average daily share volume of 690K, 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 1.19 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.
Current CNNE snapshot
As of May 15, 2026, spot at $13.14, ATM IV 46.20%, IV rank 6.08%, expected move 13.25%. The butterfly on CNNE 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 34-day expiry.
Why this butterfly structure on CNNE specifically: CNNE IV at 46.20% 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 13.25% (roughly $1.74 on the underlying). The 34-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 $13.14 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 near $13.14, the first option leg uses a $12.48 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 34-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 | $12.48 | N/A |
| Sell 2 | Call | $13.14 | N/A |
| Buy 1 | Call | $13.80 | 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 $11.40 on the downside to $14.88 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 6.08% 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 46.20%. 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 trading near $13.14, the strikes shown on this page are snapped to the nearest listed CNNE chain strike and the premiums come straight from the end-of-day 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 46.20%), 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 CNNE butterfly?
- The breakeven for the CNNE 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 CNNE market-implied 1-standard-deviation expected move is approximately 13.25%; 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 46.20% with IV rank near 6.08%, 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.