DOMO Butterfly Strategy
DOMO (Domo, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Domo, Inc. provides a sophisticated cloud-based platform specifically designed for business intelligence. This service is available globally, with operations spanning the United States, Japan, and other international territories. The platform's core function is to digitally unite an organization's entire workforce—from senior executives to on-the-ground employees—with essential data, internal systems, and colleagues. This integration grants users immediate access to crucial real-time information and actionable insights, enabling them to oversee and manage business operations conveniently from their smartphones. The company, which was originally incorporated in 2010, was known as Domo Technologies, Inc. before officially changing its name to Domo, Inc. in December 2011. Its corporate headquarters are situated in American Fork, Utah.
DOMO (Domo, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $123.1M, a beta of 1.77 versus the broader market, a 52-week range of 1.84-18.489, average daily share volume of 1.6M, a public-listing history dating back to 2018, approximately 888 full-time employees. These structural characteristics shape how DOMO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.77 indicates DOMO 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 DOMO?
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 DOMO snapshot
As of June 29, 2026, spot at $2.84, ATM IV 183.10%, IV rank 37.24%, expected move 52.49%. The butterfly on DOMO 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 18-day expiry.
Why this butterfly structure on DOMO specifically: DOMO IV at 183.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 52.49% (roughly $1.49 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DOMO expiries trade a higher absolute premium for lower per-day decay. Position sizing on DOMO should anchor to the underlying notional of $2.84 per share and to the trader's directional view on DOMO stock.
DOMO butterfly setup
The DOMO 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 DOMO near $2.84, the first option leg uses a $2.70 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DOMO chain at a 18-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 DOMO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.70 | N/A |
| Sell 2 | Call | $2.84 | N/A |
| Buy 1 | Call | $2.98 | N/A |
DOMO 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.
DOMO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DOMO. 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 DOMO
Butterflies on DOMO are pinning bets - traders use them when they expect DOMO 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.
DOMO thesis for this butterfly
The market-implied 1-standard-deviation range for DOMO extends from approximately $1.35 on the downside to $4.33 on the upside. A DOMO long call butterfly is a pinning play: it pays maximum at the middle strike if DOMO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DOMO IV rank near 37.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DOMO should anchor more to the directional view and the expected-move geometry. As a Technology name, DOMO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DOMO-specific events.
DOMO 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. DOMO positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DOMO alongside the broader basket even when DOMO-specific fundamentals are unchanged. Always rebuild the position from current DOMO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DOMO?
- A butterfly on DOMO is the butterfly strategy applied to DOMO (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 DOMO stock trading near $2.84, the strikes shown on this page are snapped to the nearest listed DOMO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DOMO 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 DOMO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 183.10%), 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 DOMO butterfly?
- The breakeven for the DOMO 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 DOMO market-implied 1-standard-deviation expected move is approximately 52.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DOMO?
- Butterflies on DOMO are pinning bets - traders use them when they expect DOMO 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 DOMO implied volatility affect this butterfly?
- DOMO ATM IV is at 183.10% with IV rank near 37.24%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.