KINS Butterfly Strategy
KINS (Kingstone Companies, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NASDAQ.
Kingstone Companies, Inc., through its operating entity Kingstone Insurance Company, focuses on delivering property and casualty insurance to individual clients across New York. The firm's product range encompasses various personal lines, including coverage for homeowners, multi-peril dwelling fire incidents, cooperative and condominium units, renters, and personal umbrella liability. Beyond personal policies, Kingstone also offers specialized physical damage-only insurance for commercial for-hire vehicles such as livery cars, car services, and taxicabs, alongside canine legal liability policies and reinsurance solutions. Its offerings are distributed through a broad network of retail and wholesale agents and brokers. Founded in 1886 and headquartered in Kingston, New York, the company was formerly known as DCAP Group, Inc., prior to its name change in July 2009.
KINS (Kingstone Companies, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $284.2M, a trailing P/E of 9.63, a beta of 0.46 versus the broader market, a 52-week range of 13.08-20.9, average daily share volume of 130K, a public-listing history dating back to 1999, approximately 113 full-time employees. These structural characteristics shape how KINS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.46 indicates KINS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.63 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. KINS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on KINS?
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.
KINS snapshot
As of August 14, 2026, spot at $19.59, ATM IV 43.40%, IV rank 8.55%, expected move 12.44%. The butterfly on KINS 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 KINS specifically: KINS IV at 43.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a KINS butterfly, with a market-implied 1-standard-deviation move of approximately 12.44% (roughly $2.44 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 KINS expiries trade a higher absolute premium for lower per-day decay. Position sizing on KINS should anchor to the underlying notional of $19.59 per share and to the trader's directional view on KINS stock.
KINS butterfly setup
The KINS 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 KINS at $19.59 on that close, the first option leg uses a $18.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KINS 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 KINS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $18.61 | N/A |
| Sell 2 | Call | $19.59 | N/A |
| Buy 1 | Call | $20.57 | N/A |
KINS 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.
KINS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KINS. 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 KINS
Butterflies on KINS are pinning bets - traders use them when they expect KINS 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.
KINS thesis for this butterfly
The market-implied 1-standard-deviation range for KINS extends from approximately $17.15 on the downside to $22.03 on the upside. A KINS long call butterfly is a pinning play: it pays maximum at the middle strike if KINS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KINS IV rank near 8.55% 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 KINS at 43.40%. As a Financial Services name, KINS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KINS-specific events.
KINS 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. KINS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KINS alongside the broader basket even when KINS-specific fundamentals are unchanged. Always rebuild the position from current KINS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KINS?
- A butterfly on KINS is the butterfly strategy applied to KINS (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 KINS stock at $19.59 on the most recent close, the strikes shown on this page are snapped to the nearest listed KINS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KINS 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 KINS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.40%), 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 KINS butterfly?
- The breakeven for the KINS 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 KINS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KINS?
- Butterflies on KINS are pinning bets - traders use them when they expect KINS 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 KINS implied volatility affect this butterfly?
- KINS ATM IV is at 43.40% with IV rank near 8.55%, 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.