FIZZ Butterfly Strategy
FIZZ (National Beverage Corp.), in the Consumer Defensive sector, (Beverages - Non-Alcoholic industry), listed on NASDAQ.
National Beverage Corp., operating through its various subsidiaries, specializes in the creation, production, promotion, and distribution of a diverse portfolio of beverages. Its primary markets are the United States and Canada, where it offers sparkling waters, fruit juices, energy drinks, and carbonated soft drinks. The company particularly targets consumers who prioritize an active and health-conscious lifestyle, providing them with options like LaCroix, LaCroix Cúrate, LaCroix NiCola, Clear Fruit, Rip It, Everfresh, Everfresh Premier Varietals, and Mr. Pure. Additionally, its selection includes carbonated soft drinks sold under the well-known Shasta and Faygo brand names. The firm distributes its products to major retailers and a multitude of smaller, local businesses, utilizing take-home, convenience, and food-service channels.
FIZZ (National Beverage Corp.) trades in the Consumer Defensive sector, specifically Beverages - Non-Alcoholic, with a market capitalization of approximately $2.93B, a trailing P/E of 15.96, a beta of 0.76 versus the broader market, a 52-week range of 30.01-46.92, average daily share volume of 396K, a public-listing history dating back to 1991, approximately 2K full-time employees. These structural characteristics shape how FIZZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.76 places FIZZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FIZZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FIZZ?
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.
FIZZ snapshot
As of August 14, 2026, spot at $31.34, ATM IV 28.80%, IV rank 3.24%, expected move 8.26%. The butterfly on FIZZ below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on FIZZ specifically: FIZZ IV at 28.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FIZZ butterfly, with a market-implied 1-standard-deviation move of approximately 8.26% (roughly $2.59 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIZZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIZZ should anchor to the underlying notional of $31.34 per share and to the trader's directional view on FIZZ stock.
FIZZ butterfly setup
The FIZZ 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 FIZZ at $31.34 on that close, the first option leg uses a $29.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIZZ chain at a 35-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 FIZZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.77 | N/A |
| Sell 2 | Call | $31.34 | N/A |
| Buy 1 | Call | $32.91 | N/A |
FIZZ 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.
FIZZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FIZZ. 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 FIZZ
Butterflies on FIZZ are pinning bets - traders use them when they expect FIZZ 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.
FIZZ thesis for this butterfly
The market-implied 1-standard-deviation range for FIZZ extends from approximately $28.75 on the downside to $33.93 on the upside. A FIZZ long call butterfly is a pinning play: it pays maximum at the middle strike if FIZZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FIZZ IV rank near 3.24% 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 FIZZ at 28.80%. As a Consumer Defensive name, FIZZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIZZ-specific events.
FIZZ 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. FIZZ positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIZZ alongside the broader basket even when FIZZ-specific fundamentals are unchanged. Always rebuild the position from current FIZZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FIZZ?
- A butterfly on FIZZ is the butterfly strategy applied to FIZZ (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 FIZZ stock at $31.34 on the most recent close, the strikes shown on this page are snapped to the nearest listed FIZZ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FIZZ 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 FIZZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.80%), 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 FIZZ butterfly?
- The breakeven for the FIZZ butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FIZZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FIZZ?
- Butterflies on FIZZ are pinning bets - traders use them when they expect FIZZ 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 FIZZ implied volatility affect this butterfly?
- FIZZ ATM IV is at 28.80% with IV rank near 3.24%, 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.