KODK Butterfly Strategy
KODK (Eastman Kodak Company), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.
Eastman Kodak Company provides hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The company operates through Traditional Printing, Digital Printing, Advanced Materials and Chemicals, and Brand. The Traditional Printing segment offers digital offset plate and computer-to-plate imaging solutions to commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, and packaging. The Digital Printing segment provides electrophotographic printing solutions, such as The ASCEND and NEXFINITY printers; prosper products, including the PROSPER 6000 Press, PROSPER Writing Systems, PROSPER press systems, and PROSPER components; versamark products; and PRINERGY workflow production software. The Advanced Materials and Chemicals segment engages in industrial film and chemicals, motion picture, and advanced materials and functional printing businesses. This segment also comprises the Kodak Research Laboratories, which conducts research, develops new product or new business opportunities, and files patent applications for its inventions and innovations, as well as manages licensing of its intellectual property to third parties.
KODK (Eastman Kodak Company) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $1.01B, a beta of 1.66 versus the broader market, a 52-week range of 4.94-14.87, average daily share volume of 1.5M, a public-listing history dating back to 2013, approximately 4K full-time employees. These structural characteristics shape how KODK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.66 indicates KODK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on KODK?
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 KODK snapshot
As of May 15, 2026, spot at $9.71, ATM IV 72.60%, IV rank 34.31%, expected move 20.81%. The butterfly on KODK 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 KODK specifically: KODK IV at 72.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 20.81% (roughly $2.02 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 KODK expiries trade a higher absolute premium for lower per-day decay. Position sizing on KODK should anchor to the underlying notional of $9.71 per share and to the trader's directional view on KODK stock.
KODK butterfly setup
The KODK 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 KODK near $9.71, the first option leg uses a $9.22 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KODK 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 KODK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.22 | N/A |
| Sell 2 | Call | $9.71 | N/A |
| Buy 1 | Call | $10.20 | N/A |
KODK 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.
KODK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KODK. 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 KODK
Butterflies on KODK are pinning bets - traders use them when they expect KODK 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.
KODK thesis for this butterfly
The market-implied 1-standard-deviation range for KODK extends from approximately $7.69 on the downside to $11.73 on the upside. A KODK long call butterfly is a pinning play: it pays maximum at the middle strike if KODK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KODK IV rank near 34.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on KODK should anchor more to the directional view and the expected-move geometry. As a Industrials name, KODK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KODK-specific events.
KODK 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. KODK positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KODK alongside the broader basket even when KODK-specific fundamentals are unchanged. Always rebuild the position from current KODK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KODK?
- A butterfly on KODK is the butterfly strategy applied to KODK (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 KODK stock trading near $9.71, the strikes shown on this page are snapped to the nearest listed KODK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KODK 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 KODK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 72.60%), 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 KODK butterfly?
- The breakeven for the KODK 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 KODK market-implied 1-standard-deviation expected move is approximately 20.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KODK?
- Butterflies on KODK are pinning bets - traders use them when they expect KODK 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 KODK implied volatility affect this butterfly?
- KODK ATM IV is at 72.60% with IV rank near 34.31%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.