CRWS Butterfly Strategy
CRWS (Crown Crafts, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NASDAQ.
Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.
CRWS (Crown Crafts, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $29.5M, a beta of 0.66 versus the broader market, a 52-week range of 2.35-3.38, average daily share volume of 32K, a public-listing history dating back to 2003, approximately 162 full-time employees. These structural characteristics shape how CRWS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates CRWS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CRWS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CRWS?
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 CRWS snapshot
As of May 15, 2026, spot at $2.77, ATM IV 20.70%, IV rank 0.00%, expected move 5.93%. The butterfly on CRWS 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 CRWS specifically: CRWS IV at 20.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CRWS butterfly, with a market-implied 1-standard-deviation move of approximately 5.93% (roughly $0.16 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 CRWS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRWS should anchor to the underlying notional of $2.77 per share and to the trader's directional view on CRWS stock.
CRWS butterfly setup
The CRWS 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 CRWS near $2.77, the first option leg uses a $2.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRWS 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 CRWS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.63 | N/A |
| Sell 2 | Call | $2.77 | N/A |
| Buy 1 | Call | $2.91 | N/A |
CRWS 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.
CRWS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CRWS. 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 CRWS
Butterflies on CRWS are pinning bets - traders use them when they expect CRWS 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.
CRWS thesis for this butterfly
The market-implied 1-standard-deviation range for CRWS extends from approximately $2.61 on the downside to $2.93 on the upside. A CRWS long call butterfly is a pinning play: it pays maximum at the middle strike if CRWS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRWS IV rank near 0.00% 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 CRWS at 20.70%. As a Consumer Cyclical name, CRWS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRWS-specific events.
CRWS 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. CRWS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRWS alongside the broader basket even when CRWS-specific fundamentals are unchanged. Always rebuild the position from current CRWS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CRWS?
- A butterfly on CRWS is the butterfly strategy applied to CRWS (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 CRWS stock trading near $2.77, the strikes shown on this page are snapped to the nearest listed CRWS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRWS 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 CRWS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 20.70%), 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 CRWS butterfly?
- The breakeven for the CRWS 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 CRWS market-implied 1-standard-deviation expected move is approximately 5.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CRWS?
- Butterflies on CRWS are pinning bets - traders use them when they expect CRWS 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 CRWS implied volatility affect this butterfly?
- CRWS ATM IV is at 20.70% with IV rank near 0.00%, 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.