CRCT Butterfly Strategy
CRCT (Cricut, Inc.), in the Technology sector, (Computer Hardware industry), listed on NASDAQ.
Cricut, Inc. designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates in three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy, Cricut Explore, and Cricut Maker to cut, write, score, and create decorative effects using various materials, such as paper, vinyl, leather, and others; and design apps comprise Design Space app and Cricut Joy-specific app. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, various hand tools, machine replacement tools and blades, and project materials.
CRCT (Cricut, Inc.) trades in the Technology sector, specifically Computer Hardware, with a market capitalization of approximately $827.1M, a trailing P/E of 11.35, a beta of 0.15 versus the broader market, a 52-week range of 3.735-7.33, average daily share volume of 578K, a public-listing history dating back to 2021, approximately 640 full-time employees. These structural characteristics shape how CRCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.15 indicates CRCT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.35 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CRCT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CRCT?
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 CRCT snapshot
As of May 15, 2026, spot at $3.92, ATM IV 83.20%, IV rank 23.83%, expected move 23.85%. The butterfly on CRCT 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 CRCT specifically: CRCT IV at 83.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a CRCT butterfly, with a market-implied 1-standard-deviation move of approximately 23.85% (roughly $0.94 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 CRCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRCT should anchor to the underlying notional of $3.92 per share and to the trader's directional view on CRCT stock.
CRCT butterfly setup
The CRCT 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 CRCT near $3.92, the first option leg uses a $3.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRCT 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 CRCT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.72 | N/A |
| Sell 2 | Call | $3.92 | N/A |
| Buy 1 | Call | $4.12 | N/A |
CRCT 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.
CRCT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CRCT. 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 CRCT
Butterflies on CRCT are pinning bets - traders use them when they expect CRCT 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.
CRCT thesis for this butterfly
The market-implied 1-standard-deviation range for CRCT extends from approximately $2.98 on the downside to $4.86 on the upside. A CRCT long call butterfly is a pinning play: it pays maximum at the middle strike if CRCT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRCT IV rank near 23.83% 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 CRCT at 83.20%. As a Technology name, CRCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRCT-specific events.
CRCT 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. CRCT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRCT alongside the broader basket even when CRCT-specific fundamentals are unchanged. Always rebuild the position from current CRCT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CRCT?
- A butterfly on CRCT is the butterfly strategy applied to CRCT (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 CRCT stock trading near $3.92, the strikes shown on this page are snapped to the nearest listed CRCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRCT 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 CRCT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 83.20%), 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 CRCT butterfly?
- The breakeven for the CRCT 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 CRCT market-implied 1-standard-deviation expected move is approximately 23.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CRCT?
- Butterflies on CRCT are pinning bets - traders use them when they expect CRCT 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 CRCT implied volatility affect this butterfly?
- CRCT ATM IV is at 83.20% with IV rank near 23.83%, 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.