CPRT Butterfly Strategy
CPRT (Copart, Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NASDAQ.
Copart, Inc. provides online auctions and vehicle remarketing services in the United States, the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland, and Bahrain. It offers a range of services to process and sell vehicles over the internet through its virtual bidding third generation internet auction-style sales technology. The company's services include online seller access, salvage estimation, estimating, end-of-life vehicle processing, transportation, vehicle inspection stations, on-demand reporting, title processing and express, loan payoff, flexible vehicle processing programs, buy it now, sales process, and dealer services. Its services also comprise services to sell vehicles through BluCar, CashForCars.com, CashForCars.ca, CashForCars.de, CashForCars.co.uk, and Cash-for-cars.ie; Copart Recycling service, which allows the public to purchase parts from salvaged and end-of-life vehicles; and copart 360, a proprietary technology that captures clear 360-degree views of interiors and exteriors of cars, trucks, and vans. In addition, it provides IntelliSeller, an automated tool leveraging its vehicle and sales data to assist its sellers in making vital auction decisions; Purple Wave Inc., that offers wholesale construction, agriculture, and fleet remarketing services through no-reserve online auctions; wholesale powersport vehicle remarketing services through live and online auction platforms. The company sells its products to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the public.
CPRT (Copart, Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $31.73B, a trailing P/E of 20.46, a beta of 1.02 versus the broader market, a 52-week range of 32.2-63.85, average daily share volume of 9.0M, a public-listing history dating back to 1994, approximately 14K full-time employees. These structural characteristics shape how CPRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places CPRT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CPRT?
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 CPRT snapshot
As of May 15, 2026, spot at $32.45, ATM IV 40.60%, IV rank 8.02%, expected move 11.64%. The butterfly on CPRT 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 CPRT specifically: CPRT IV at 40.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPRT butterfly, with a market-implied 1-standard-deviation move of approximately 11.64% (roughly $3.78 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 CPRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRT should anchor to the underlying notional of $32.45 per share and to the trader's directional view on CPRT stock.
CPRT butterfly setup
The CPRT 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 CPRT near $32.45, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRT 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 CPRT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $30.00 | $3.30 |
| Sell 2 | Call | $32.50 | $1.68 |
| Buy 1 | Call | $35.00 | $0.75 |
CPRT butterfly risk and reward
- Net Premium / Debit
- -$70.00
- Max Profit (per contract)
- $168.20
- Max Loss (per contract)
- -$70.00
- Breakeven(s)
- $30.70, $34.30
- Risk / Reward Ratio
- 2.403
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.
CPRT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CPRT. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$70.00 |
| $7.18 | -77.9% | -$70.00 |
| $14.36 | -55.8% | -$70.00 |
| $21.53 | -33.6% | -$70.00 |
| $28.71 | -11.5% | -$70.00 |
| $35.88 | +10.6% | -$70.00 |
| $43.05 | +32.7% | -$70.00 |
| $50.23 | +54.8% | -$70.00 |
| $57.40 | +76.9% | -$70.00 |
| $64.57 | +99.0% | -$70.00 |
When traders use butterfly on CPRT
Butterflies on CPRT are pinning bets - traders use them when they expect CPRT 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.
CPRT thesis for this butterfly
The market-implied 1-standard-deviation range for CPRT extends from approximately $28.67 on the downside to $36.23 on the upside. A CPRT long call butterfly is a pinning play: it pays maximum at the middle strike if CPRT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CPRT IV rank near 8.02% 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 CPRT at 40.60%. As a Industrials name, CPRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRT-specific events.
CPRT 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. CPRT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPRT alongside the broader basket even when CPRT-specific fundamentals are unchanged. Always rebuild the position from current CPRT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CPRT?
- A butterfly on CPRT is the butterfly strategy applied to CPRT (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 CPRT stock trading near $32.45, the strikes shown on this page are snapped to the nearest listed CPRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CPRT 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 CPRT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.60%), the computed maximum profit is $168.20 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CPRT butterfly?
- The breakeven for the CPRT butterfly priced on this page is roughly $30.70 and $34.30 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 CPRT market-implied 1-standard-deviation expected move is approximately 11.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CPRT?
- Butterflies on CPRT are pinning bets - traders use them when they expect CPRT 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 CPRT implied volatility affect this butterfly?
- CPRT ATM IV is at 40.60% with IV rank near 8.02%, 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.