CRWV Butterfly Strategy
CRWV (CoreWeave, Inc. Class A Common Stock), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
CoreWeave, Inc. operates a cloud platform that provides scaling, support, and acceleration for GenAI. The company builds the infrastructure that supports compute workloads for enterprises. Its products include GPU compute, CPU compute, storage services, networking services, managed services, and virtual and bare metal servers. Additionally, its platform offers a fleet lifecycle controller, node lifecycle controller, tensorizer, and observability. The company's services also include VFX and rendering, AI model training, AI interference, and mission control. CoreWeave, Inc. was formerly known as Atlantic Crypto Corporation and changed its name to CoreWeave, Inc. in December 2019.
CRWV (CoreWeave, Inc. Class A Common Stock) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $60.73B, a beta of 7.80 versus the broader market, a 52-week range of 61.33-187, average daily share volume of 28.2M, a public-listing history dating back to 2025, approximately 881 full-time employees. These structural characteristics shape how CRWV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 7.80 indicates CRWV has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on CRWV?
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 CRWV snapshot
As of May 15, 2026, spot at $107.78, ATM IV 83.99%, IV rank 18.77%, expected move 24.08%. The butterfly on CRWV 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 28-day expiry.
Why this butterfly structure on CRWV specifically: CRWV IV at 83.99% is on the cheap side of its 1-year range, which favors premium-buying structures like a CRWV butterfly, with a market-implied 1-standard-deviation move of approximately 24.08% (roughly $25.95 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CRWV expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRWV should anchor to the underlying notional of $107.78 per share and to the trader's directional view on CRWV stock.
CRWV butterfly setup
The CRWV 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 CRWV near $107.78, the first option leg uses a $102.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRWV chain at a 28-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 CRWV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $102.00 | $13.48 |
| Sell 2 | Call | $108.00 | $10.33 |
| Buy 1 | Call | $113.00 | $8.18 |
CRWV butterfly risk and reward
- Net Premium / Debit
- -$100.00
- Max Profit (per contract)
- $467.34
- Max Loss (per contract)
- -$100.00
- Breakeven(s)
- $103.00, $113.74
- Risk / Reward Ratio
- 4.673
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.
CRWV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CRWV. 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% | -$100.00 |
| $23.84 | -77.9% | -$100.00 |
| $47.67 | -55.8% | -$100.00 |
| $71.50 | -33.7% | -$100.00 |
| $95.33 | -11.6% | -$100.00 |
| $119.16 | +10.6% | -$0.00 |
| $142.99 | +32.7% | +$0.00 |
| $166.82 | +54.8% | -$0.00 |
| $190.65 | +76.9% | +$0.00 |
| $214.48 | +99.0% | -$0.00 |
When traders use butterfly on CRWV
Butterflies on CRWV are pinning bets - traders use them when they expect CRWV 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.
CRWV thesis for this butterfly
The market-implied 1-standard-deviation range for CRWV extends from approximately $81.83 on the downside to $133.73 on the upside. A CRWV long call butterfly is a pinning play: it pays maximum at the middle strike if CRWV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRWV IV rank near 18.77% 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 CRWV at 83.99%. As a Technology name, CRWV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRWV-specific events.
CRWV 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. CRWV positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRWV alongside the broader basket even when CRWV-specific fundamentals are unchanged. Always rebuild the position from current CRWV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CRWV?
- A butterfly on CRWV is the butterfly strategy applied to CRWV (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 CRWV stock trading near $107.78, the strikes shown on this page are snapped to the nearest listed CRWV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRWV 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 CRWV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 83.99%), the computed maximum profit is $467.34 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRWV butterfly?
- The breakeven for the CRWV butterfly priced on this page is roughly $103.00 and $113.74 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 CRWV market-implied 1-standard-deviation expected move is approximately 24.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CRWV?
- Butterflies on CRWV are pinning bets - traders use them when they expect CRWV 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 CRWV implied volatility affect this butterfly?
- CRWV ATM IV is at 83.99% with IV rank near 18.77%, 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.