KNDI Butterfly Strategy
KNDI (Kandi Technologies Group, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Kandi Technologies Group, Inc. designs, develops, manufactures, and commercializes electric vehicle (EV) products and parts, and off-road vehicles in the People's Republic of China and internationally. It offers off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts; and EV parts comprising battery packs, body parts, EV controllers, air conditioning units, and other auto parts. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People's Republic of China.
KNDI (Kandi Technologies Group, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $53.6M, a beta of 0.55 versus the broader market, a 52-week range of 0.61-1.77, average daily share volume of 282K, a public-listing history dating back to 2007, approximately 840 full-time employees. These structural characteristics shape how KNDI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.55 indicates KNDI 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 KNDI?
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 KNDI snapshot
As of May 15, 2026, spot at $0.66, ATM IV 22.00%, IV rank 1.23%, expected move 6.31%. The butterfly on KNDI 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 KNDI specifically: KNDI IV at 22.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a KNDI butterfly, with a market-implied 1-standard-deviation move of approximately 6.31% (roughly $0.04 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 KNDI expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNDI should anchor to the underlying notional of $0.66 per share and to the trader's directional view on KNDI stock.
KNDI butterfly setup
The KNDI 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 KNDI near $0.66, the first option leg uses a $0.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNDI 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 KNDI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.63 | N/A |
| Sell 2 | Call | $0.66 | N/A |
| Buy 1 | Call | $0.69 | N/A |
KNDI 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.
KNDI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KNDI. 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 KNDI
Butterflies on KNDI are pinning bets - traders use them when they expect KNDI 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.
KNDI thesis for this butterfly
The market-implied 1-standard-deviation range for KNDI extends from approximately $0.62 on the downside to $0.70 on the upside. A KNDI long call butterfly is a pinning play: it pays maximum at the middle strike if KNDI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KNDI IV rank near 1.23% 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 KNDI at 22.00%. As a Consumer Cyclical name, KNDI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNDI-specific events.
KNDI 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. KNDI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNDI alongside the broader basket even when KNDI-specific fundamentals are unchanged. Always rebuild the position from current KNDI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KNDI?
- A butterfly on KNDI is the butterfly strategy applied to KNDI (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 KNDI stock trading near $0.66, the strikes shown on this page are snapped to the nearest listed KNDI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KNDI 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 KNDI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.00%), 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 KNDI butterfly?
- The breakeven for the KNDI 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 KNDI market-implied 1-standard-deviation expected move is approximately 6.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KNDI?
- Butterflies on KNDI are pinning bets - traders use them when they expect KNDI 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 KNDI implied volatility affect this butterfly?
- KNDI ATM IV is at 22.00% with IV rank near 1.23%, 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.