GRND Butterfly Strategy
GRND (Grindr Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Grindr Inc. runs an online social networking platform specifically designed for the LGBTQ demographic. Through this digital space, gay, bisexual, transgender, and queer individuals can interact, exchange experiences and media, and freely express their identities. The service is accessible both as a free, advertisement-supported offering and through a premium, subscriber-based membership. Founded in 2009, the company maintains its operations from West Hollywood, California.
GRND (Grindr Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $2.82B, a trailing P/E of 29.35, a beta of 0.21 versus the broader market, a 52-week range of 9.732-18.5, average daily share volume of 1.6M, a public-listing history dating back to 2021, approximately 165 full-time employees. These structural characteristics shape how GRND stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.21 indicates GRND has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on GRND?
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.
GRND snapshot
As of August 14, 2026, spot at $16.02, ATM IV 39.00%, IV rank 5.10%, expected move 11.18%. The butterfly on GRND below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this butterfly structure on GRND specifically: GRND IV at 39.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a GRND butterfly, with a market-implied 1-standard-deviation move of approximately 11.18% (roughly $1.79 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GRND expiries trade a higher absolute premium for lower per-day decay. Position sizing on GRND should anchor to the underlying notional of $16.02 per share and to the trader's directional view on GRND stock.
GRND butterfly setup
The GRND butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GRND at $16.02 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GRND chain at a 7-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 GRND shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.00 | $1.13 |
| Sell 2 | Call | $16.00 | $0.38 |
| Buy 1 | Call | $17.00 | $0.10 |
GRND butterfly risk and reward
- Net Premium / Debit
- -$47.50
- Max Profit (per contract)
- $46.95
- Max Loss (per contract)
- -$47.50
- Breakeven(s)
- $15.48, $16.53
- Risk / Reward Ratio
- 0.988
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.
GRND butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GRND. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$47.50 |
| $3.55 | -77.8% | -$47.50 |
| $7.09 | -55.7% | -$47.50 |
| $10.63 | -33.6% | -$47.50 |
| $14.17 | -11.5% | -$47.50 |
| $17.72 | +10.6% | -$47.50 |
| $21.26 | +32.7% | -$47.50 |
| $24.80 | +54.8% | -$47.50 |
| $28.34 | +76.9% | -$47.50 |
| $31.88 | +99.0% | -$47.50 |
When traders use butterfly on GRND
Butterflies on GRND are pinning bets - traders use them when they expect GRND 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.
GRND thesis for this butterfly
The market-implied 1-standard-deviation range for GRND extends from approximately $14.23 on the downside to $17.81 on the upside. A GRND long call butterfly is a pinning play: it pays maximum at the middle strike if GRND settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GRND IV rank near 5.10% 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 GRND at 39.00%. As a Technology name, GRND options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GRND-specific events.
GRND 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. GRND positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GRND alongside the broader basket even when GRND-specific fundamentals are unchanged. Always rebuild the position from current GRND chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GRND?
- A butterfly on GRND is the butterfly strategy applied to GRND (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 GRND stock at $16.02 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GRND chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GRND 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 GRND butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.00%), the computed maximum profit is $46.95 per contract and the computed maximum loss is -$47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GRND butterfly?
- The breakeven for the GRND butterfly priced on this page is roughly $15.48 and $16.53 at expiration, derived from the August 14, 2026 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 GRND market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GRND?
- Butterflies on GRND are pinning bets - traders use them when they expect GRND 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 GRND implied volatility affect this butterfly?
- GRND ATM IV is at 39.00% with IV rank near 5.10%, 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.