FORR Butterfly Strategy
FORR (Forrester Research, Inc.), in the Industrials sector, (Consulting Services industry), listed on NASDAQ.
Forrester Research, Inc. operates as an autonomous provider of research and advisory solutions. The company's business activities are structured into three primary divisions: Research, Consulting, and Events. Within its Research division, Forrester provides key subscription offerings such as Forrester Research, SiriusDecisions Research, and Forrester Decisions. These services are specifically engineered to equip business and technology leaders with the insights needed to foster growth by prioritizing customer experience. This segment delivers diverse content, including projections on future trends, market outlooks, extensive data and understanding of consumer and business purchasing behaviors, refined best practice models and operational tools, performance benchmarking data, and comprehensive analyses of technology and service landscapes, complete with vendor assessments. All this information is readily available via online platforms.
FORR (Forrester Research, Inc.) trades in the Industrials sector, specifically Consulting Services, with a market capitalization of approximately $151.6M, a beta of 1.02 versus the broader market, a 52-week range of 4.88-11.57, average daily share volume of 109K, a public-listing history dating back to 1996, approximately 2K full-time employees. These structural characteristics shape how FORR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places FORR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on FORR?
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 FORR snapshot
As of June 29, 2026, spot at $8.41, ATM IV 95.80%, IV rank 17.92%, expected move 27.46%. The butterfly on FORR 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 FORR specifically: FORR IV at 95.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FORR butterfly, with a market-implied 1-standard-deviation move of approximately 27.46% (roughly $2.31 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 FORR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FORR should anchor to the underlying notional of $8.41 per share and to the trader's directional view on FORR stock.
FORR butterfly setup
The FORR 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 FORR near $8.41, the first option leg uses a $7.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FORR 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 FORR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.99 | N/A |
| Sell 2 | Call | $8.41 | N/A |
| Buy 1 | Call | $8.83 | N/A |
FORR 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.
FORR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FORR. 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 FORR
Butterflies on FORR are pinning bets - traders use them when they expect FORR 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.
FORR thesis for this butterfly
The market-implied 1-standard-deviation range for FORR extends from approximately $6.10 on the downside to $10.72 on the upside. A FORR long call butterfly is a pinning play: it pays maximum at the middle strike if FORR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FORR IV rank near 17.92% 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 FORR at 95.80%. As a Industrials name, FORR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FORR-specific events.
FORR 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. FORR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FORR alongside the broader basket even when FORR-specific fundamentals are unchanged. Always rebuild the position from current FORR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FORR?
- A butterfly on FORR is the butterfly strategy applied to FORR (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 FORR stock trading near $8.41, the strikes shown on this page are snapped to the nearest listed FORR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FORR 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 FORR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 95.80%), 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 FORR butterfly?
- The breakeven for the FORR 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 FORR market-implied 1-standard-deviation expected move is approximately 27.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FORR?
- Butterflies on FORR are pinning bets - traders use them when they expect FORR 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 FORR implied volatility affect this butterfly?
- FORR ATM IV is at 95.80% with IV rank near 17.92%, 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.