DOUG Butterfly Strategy
DOUG (Douglas Elliman Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
Douglas Elliman Inc. engages in the real estate services and property technology investment business in the United States. It operates in two segments, Real Estate Brokerage, and Corporate and Other. The company conducts residential real estate brokerage operations. It has approximately 100 offices with approximately 6,500 real estate agents in the New York metropolitan areas, as well as in Florida, California, Connecticut, Massachusetts, Colorado, New Jersey, and Texas. Douglas Elliman Inc. was founded in 1911 and is headquartered in Miami, Florida. Douglas Elliman Inc.(NYSE:DOUG) operates independently of Vector Group Ltd. as of December 29, 2021.
DOUG (Douglas Elliman Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $156.4M, a trailing P/E of 29.90, a beta of 1.96 versus the broader market, a 52-week range of 1.53-3.2, average daily share volume of 768K, a public-listing history dating back to 2021, approximately 783 full-time employees. These structural characteristics shape how DOUG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.96 indicates DOUG 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 DOUG?
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 DOUG snapshot
As of May 15, 2026, spot at $1.56, ATM IV 25.20%, IV rank 2.29%, expected move 7.22%. The butterfly on DOUG 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 DOUG specifically: DOUG IV at 25.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a DOUG butterfly, with a market-implied 1-standard-deviation move of approximately 7.22% (roughly $0.11 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 DOUG expiries trade a higher absolute premium for lower per-day decay. Position sizing on DOUG should anchor to the underlying notional of $1.56 per share and to the trader's directional view on DOUG stock.
DOUG butterfly setup
The DOUG 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 DOUG near $1.56, the first option leg uses a $1.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DOUG 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 DOUG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.48 | N/A |
| Sell 2 | Call | $1.56 | N/A |
| Buy 1 | Call | $1.64 | N/A |
DOUG 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.
DOUG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DOUG. 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 DOUG
Butterflies on DOUG are pinning bets - traders use them when they expect DOUG 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.
DOUG thesis for this butterfly
The market-implied 1-standard-deviation range for DOUG extends from approximately $1.45 on the downside to $1.67 on the upside. A DOUG long call butterfly is a pinning play: it pays maximum at the middle strike if DOUG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DOUG IV rank near 2.29% 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 DOUG at 25.20%. As a Real Estate name, DOUG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DOUG-specific events.
DOUG 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. DOUG positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DOUG alongside the broader basket even when DOUG-specific fundamentals are unchanged. Always rebuild the position from current DOUG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DOUG?
- A butterfly on DOUG is the butterfly strategy applied to DOUG (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 DOUG stock trading near $1.56, the strikes shown on this page are snapped to the nearest listed DOUG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DOUG 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 DOUG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.20%), 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 DOUG butterfly?
- The breakeven for the DOUG 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 DOUG market-implied 1-standard-deviation expected move is approximately 7.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DOUG?
- Butterflies on DOUG are pinning bets - traders use them when they expect DOUG 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 DOUG implied volatility affect this butterfly?
- DOUG ATM IV is at 25.20% with IV rank near 2.29%, 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.