HBNC Butterfly Strategy
HBNC (Horizon Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides a range of commercial and retail banking services. The company offers various deposits. It also provides commercial, residential real estate, mortgage warehouse, and consumer loans. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; and sells various insurance products. It operates through a network of 78 full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.
HBNC (Horizon Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $911.1M, a beta of 0.83 versus the broader market, a 52-week range of 14.34-19.07, average daily share volume of 357K, a public-listing history dating back to 2002, approximately 841 full-time employees. These structural characteristics shape how HBNC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places HBNC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HBNC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on HBNC?
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 HBNC snapshot
As of May 15, 2026, spot at $17.62, ATM IV 47.70%, IV rank 6.83%, expected move 13.68%. The butterfly on HBNC 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 HBNC specifically: HBNC IV at 47.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a HBNC butterfly, with a market-implied 1-standard-deviation move of approximately 13.68% (roughly $2.41 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 HBNC expiries trade a higher absolute premium for lower per-day decay. Position sizing on HBNC should anchor to the underlying notional of $17.62 per share and to the trader's directional view on HBNC stock.
HBNC butterfly setup
The HBNC 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 HBNC near $17.62, the first option leg uses a $16.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HBNC 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 HBNC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $16.74 | N/A |
| Sell 2 | Call | $17.62 | N/A |
| Buy 1 | Call | $18.50 | N/A |
HBNC 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.
HBNC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HBNC. 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 HBNC
Butterflies on HBNC are pinning bets - traders use them when they expect HBNC 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.
HBNC thesis for this butterfly
The market-implied 1-standard-deviation range for HBNC extends from approximately $15.21 on the downside to $20.03 on the upside. A HBNC long call butterfly is a pinning play: it pays maximum at the middle strike if HBNC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HBNC IV rank near 6.83% 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 HBNC at 47.70%. As a Financial Services name, HBNC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HBNC-specific events.
HBNC 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. HBNC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HBNC alongside the broader basket even when HBNC-specific fundamentals are unchanged. Always rebuild the position from current HBNC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HBNC?
- A butterfly on HBNC is the butterfly strategy applied to HBNC (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 HBNC stock trading near $17.62, the strikes shown on this page are snapped to the nearest listed HBNC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HBNC 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 HBNC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.70%), 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 HBNC butterfly?
- The breakeven for the HBNC 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 HBNC market-implied 1-standard-deviation expected move is approximately 13.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HBNC?
- Butterflies on HBNC are pinning bets - traders use them when they expect HBNC 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 HBNC implied volatility affect this butterfly?
- HBNC ATM IV is at 47.70% with IV rank near 6.83%, 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.