ITRN Butterfly Strategy
ITRN (Ituran Location and Control Ltd.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products. The company's Telematics services segment provides stolen vehicle recovery and tracking services, which locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. It also offers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. Its Telematics Products segment provides Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.
ITRN (Ituran Location and Control Ltd.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $1.17B, a trailing P/E of 20.19, a beta of 0.75 versus the broader market, a 52-week range of 32.71-62.31, average daily share volume of 119K, a public-listing history dating back to 2005, approximately 3K full-time employees. These structural characteristics shape how ITRN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places ITRN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ITRN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ITRN?
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 ITRN snapshot
As of May 15, 2026, spot at $57.36, ATM IV 38.00%, IV rank 15.71%, expected move 10.89%. The butterfly on ITRN 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 ITRN specifically: ITRN IV at 38.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ITRN butterfly, with a market-implied 1-standard-deviation move of approximately 10.89% (roughly $6.25 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 ITRN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITRN should anchor to the underlying notional of $57.36 per share and to the trader's directional view on ITRN stock.
ITRN butterfly setup
The ITRN 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 ITRN near $57.36, the first option leg uses a $54.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ITRN 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 ITRN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $54.49 | N/A |
| Sell 2 | Call | $57.36 | N/A |
| Buy 1 | Call | $60.23 | N/A |
ITRN 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.
ITRN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ITRN. 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 ITRN
Butterflies on ITRN are pinning bets - traders use them when they expect ITRN 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.
ITRN thesis for this butterfly
The market-implied 1-standard-deviation range for ITRN extends from approximately $51.11 on the downside to $63.61 on the upside. A ITRN long call butterfly is a pinning play: it pays maximum at the middle strike if ITRN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ITRN IV rank near 15.71% 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 ITRN at 38.00%. As a Technology name, ITRN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ITRN-specific events.
ITRN 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. ITRN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ITRN alongside the broader basket even when ITRN-specific fundamentals are unchanged. Always rebuild the position from current ITRN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ITRN?
- A butterfly on ITRN is the butterfly strategy applied to ITRN (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 ITRN stock trading near $57.36, the strikes shown on this page are snapped to the nearest listed ITRN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ITRN 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 ITRN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), 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 ITRN butterfly?
- The breakeven for the ITRN 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 ITRN market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ITRN?
- Butterflies on ITRN are pinning bets - traders use them when they expect ITRN 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 ITRN implied volatility affect this butterfly?
- ITRN ATM IV is at 38.00% with IV rank near 15.71%, 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.