CRUS Butterfly Strategy
CRUS (Cirrus Logic, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Cirrus Logic, Inc., a fabless semiconductor company, provides low-power and high-precision mixed-signal processing solutions in the United States and internationally. It offers portable products, including codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with digital signal processer; boosted amplifiers; digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, hearing augmentation, and active noise cancellation. The company's audio products are used in smartphones, tablets, wireless headsets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products, such as haptic driver and sensing solutions, camera controllers, power conversion, and control ICs and fast-charging ICs used in various industrial and energy applications comprising digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.
CRUS (Cirrus Logic, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $8.49B, a trailing P/E of 20.41, a beta of 1.15 versus the broader market, a 52-week range of 92.02-179, average daily share volume of 639K, a public-listing history dating back to 1989, approximately 2K full-time employees. These structural characteristics shape how CRUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.15 places CRUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CRUS?
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 CRUS snapshot
As of May 15, 2026, spot at $160.14, ATM IV 43.90%, IV rank 28.13%, expected move 12.59%. The butterfly on CRUS 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 CRUS specifically: CRUS IV at 43.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CRUS butterfly, with a market-implied 1-standard-deviation move of approximately 12.59% (roughly $20.15 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 CRUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRUS should anchor to the underlying notional of $160.14 per share and to the trader's directional view on CRUS stock.
CRUS butterfly setup
The CRUS 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 CRUS near $160.14, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRUS 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 CRUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $150.00 | $15.25 |
| Sell 2 | Call | $160.00 | $9.00 |
| Buy 1 | Call | $170.00 | $5.00 |
CRUS butterfly risk and reward
- Net Premium / Debit
- -$225.00
- Max Profit (per contract)
- $709.03
- Max Loss (per contract)
- -$225.00
- Breakeven(s)
- $152.25, $167.75
- Risk / Reward Ratio
- 3.151
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.
CRUS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CRUS. 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% | -$225.00 |
| $35.42 | -77.9% | -$225.00 |
| $70.82 | -55.8% | -$225.00 |
| $106.23 | -33.7% | -$225.00 |
| $141.64 | -11.6% | -$225.00 |
| $177.04 | +10.6% | -$225.00 |
| $212.45 | +32.7% | -$225.00 |
| $247.86 | +54.8% | -$225.00 |
| $283.26 | +76.9% | -$225.00 |
| $318.67 | +99.0% | -$225.00 |
When traders use butterfly on CRUS
Butterflies on CRUS are pinning bets - traders use them when they expect CRUS 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.
CRUS thesis for this butterfly
The market-implied 1-standard-deviation range for CRUS extends from approximately $139.99 on the downside to $180.29 on the upside. A CRUS long call butterfly is a pinning play: it pays maximum at the middle strike if CRUS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRUS IV rank near 28.13% 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 CRUS at 43.90%. As a Technology name, CRUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRUS-specific events.
CRUS 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. CRUS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRUS alongside the broader basket even when CRUS-specific fundamentals are unchanged. Always rebuild the position from current CRUS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CRUS?
- A butterfly on CRUS is the butterfly strategy applied to CRUS (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 CRUS stock trading near $160.14, the strikes shown on this page are snapped to the nearest listed CRUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRUS 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 CRUS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.90%), the computed maximum profit is $709.03 per contract and the computed maximum loss is -$225.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRUS butterfly?
- The breakeven for the CRUS butterfly priced on this page is roughly $152.25 and $167.75 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 CRUS market-implied 1-standard-deviation expected move is approximately 12.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CRUS?
- Butterflies on CRUS are pinning bets - traders use them when they expect CRUS 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 CRUS implied volatility affect this butterfly?
- CRUS ATM IV is at 43.90% with IV rank near 28.13%, 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.