CSR Butterfly Strategy
CSR (Centerspace), in the Real Estate sector, (REIT - Residential industry), listed on NYSE.
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of June 30, 2021, Centerspace owned 62 apartment communities consisting of 11,579 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2021 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.
CSR (Centerspace) trades in the Real Estate sector, specifically REIT - Residential, with a market capitalization of approximately $1.15B, a trailing P/E of 137.94, a beta of 0.92 versus the broader market, a 52-week range of 52.76-69.61, average daily share volume of 129K, a public-listing history dating back to 1997, approximately 374 full-time employees. These structural characteristics shape how CSR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places CSR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 137.94 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CSR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CSR?
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 CSR snapshot
As of May 15, 2026, spot at $67.22, ATM IV 24.80%, IV rank 3.48%, expected move 7.11%. The butterfly on CSR 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 CSR specifically: CSR IV at 24.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CSR butterfly, with a market-implied 1-standard-deviation move of approximately 7.11% (roughly $4.78 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 CSR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSR should anchor to the underlying notional of $67.22 per share and to the trader's directional view on CSR stock.
CSR butterfly setup
The CSR 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 CSR near $67.22, the first option leg uses a $63.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSR 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 CSR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $63.86 | N/A |
| Sell 2 | Call | $67.22 | N/A |
| Buy 1 | Call | $70.58 | N/A |
CSR 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.
CSR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CSR. 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 CSR
Butterflies on CSR are pinning bets - traders use them when they expect CSR 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.
CSR thesis for this butterfly
The market-implied 1-standard-deviation range for CSR extends from approximately $62.44 on the downside to $72.00 on the upside. A CSR long call butterfly is a pinning play: it pays maximum at the middle strike if CSR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CSR IV rank near 3.48% 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 CSR at 24.80%. As a Real Estate name, CSR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSR-specific events.
CSR 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. CSR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSR alongside the broader basket even when CSR-specific fundamentals are unchanged. Always rebuild the position from current CSR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CSR?
- A butterfly on CSR is the butterfly strategy applied to CSR (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 CSR stock trading near $67.22, the strikes shown on this page are snapped to the nearest listed CSR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CSR 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 CSR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.80%), 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 CSR butterfly?
- The breakeven for the CSR 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 CSR market-implied 1-standard-deviation expected move is approximately 7.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CSR?
- Butterflies on CSR are pinning bets - traders use them when they expect CSR 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 CSR implied volatility affect this butterfly?
- CSR ATM IV is at 24.80% with IV rank near 3.48%, 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.