CNOB Butterfly Strategy
CNOB (ConnectOne Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the Northern New Jersey and New York Metropolitan area, and South Florida market. The company offers personal and business checking, retirement, money market, and time and savings accounts. It also provides consumer and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; other personal purpose loans; and commercial construction and real estate loans. In addition, the company offers check cards, ATM cards, credit cards, wire transfers, access to automated teller services, Internet banking, treasury direct, automated clearing house origination, mobile banking by phone, safe deposit boxes, and remote deposit capture services. It operates through a network of eight banking offices in Bergen County, five banking offices in Union County, one banking office in Morris County, one office in Essex County, one office in Hudson County, one office in Monmouth County, one banking office in Manhattan in New York City, one office in Nassau County on Long Island, one in Astoria, and five branches in the Hudson Valley, as well as one financial center in West Palm Beach in Palm Beach County. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014.
CNOB (ConnectOne Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.47B, a trailing P/E of 15.05, a beta of 1.06 versus the broader market, a 52-week range of 21.79-30.65, average daily share volume of 354K, a public-listing history dating back to 1994, approximately 489 full-time employees. These structural characteristics shape how CNOB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places CNOB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNOB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CNOB?
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 CNOB snapshot
As of May 15, 2026, spot at $28.94, ATM IV 52.40%, IV rank 17.06%, expected move 15.02%. The butterfly on CNOB 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 CNOB specifically: CNOB IV at 52.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a CNOB butterfly, with a market-implied 1-standard-deviation move of approximately 15.02% (roughly $4.35 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 CNOB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNOB should anchor to the underlying notional of $28.94 per share and to the trader's directional view on CNOB stock.
CNOB butterfly setup
The CNOB 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 CNOB near $28.94, the first option leg uses a $27.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNOB 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 CNOB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $27.49 | N/A |
| Sell 2 | Call | $28.94 | N/A |
| Buy 1 | Call | $30.39 | N/A |
CNOB 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.
CNOB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CNOB. 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 CNOB
Butterflies on CNOB are pinning bets - traders use them when they expect CNOB 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.
CNOB thesis for this butterfly
The market-implied 1-standard-deviation range for CNOB extends from approximately $24.59 on the downside to $33.29 on the upside. A CNOB long call butterfly is a pinning play: it pays maximum at the middle strike if CNOB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CNOB IV rank near 17.06% 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 CNOB at 52.40%. As a Financial Services name, CNOB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNOB-specific events.
CNOB 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. CNOB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNOB alongside the broader basket even when CNOB-specific fundamentals are unchanged. Always rebuild the position from current CNOB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CNOB?
- A butterfly on CNOB is the butterfly strategy applied to CNOB (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 CNOB stock trading near $28.94, the strikes shown on this page are snapped to the nearest listed CNOB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNOB 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 CNOB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.40%), 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 CNOB butterfly?
- The breakeven for the CNOB 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 CNOB market-implied 1-standard-deviation expected move is approximately 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CNOB?
- Butterflies on CNOB are pinning bets - traders use them when they expect CNOB 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 CNOB implied volatility affect this butterfly?
- CNOB ATM IV is at 52.40% with IV rank near 17.06%, 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.