LAND Butterfly Strategy
LAND (Gladstone Land Corporation), in the Real Estate sector, (REIT - Specialty industry), listed on NASDAQ.
Established in 1997, Gladstone Land operates as a publicly traded real estate investment trust (REIT) focused on acquiring and owning agricultural land and related properties situated in key farming regions across the United States. It leases these assets to independent third-party farmers. The company regularly reports the fair value of its farmland holdings each quarter. Presently, its portfolio consists of 127 farms, covering approximately 94,000 acres in 13 different states, with an estimated worth of $1.0 billion. A significant portion of Gladstone Land's properties are located in areas suitable for growing fresh, annual row crops, such as berries and various vegetables, which are planted and harvested annually by its tenants. Additionally, the company's holdings include farms dedicated to permanent crops like almonds, apples, figs, olives, pistachios, other orchard fruits, blueberry groves, and vineyards.
LAND (Gladstone Land Corporation) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $371.4M, a beta of 1.05 versus the broader market, a 52-week range of 8.425-13, average daily share volume of 578K, a public-listing history dating back to 2013, approximately 70 full-time employees. These structural characteristics shape how LAND stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places LAND roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LAND pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on LAND?
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 LAND snapshot
As of June 30, 2026, spot at $8.53, ATM IV 36.80%, IV rank 7.19%, expected move 10.55%. The butterfly on LAND 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 17-day expiry.
Why this butterfly structure on LAND specifically: LAND IV at 36.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a LAND butterfly, with a market-implied 1-standard-deviation move of approximately 10.55% (roughly $0.90 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LAND expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAND should anchor to the underlying notional of $8.53 per share and to the trader's directional view on LAND stock.
LAND butterfly setup
The LAND 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 LAND near $8.53, the first option leg uses a $8.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAND chain at a 17-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 LAND shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.10 | N/A |
| Sell 2 | Call | $8.53 | N/A |
| Buy 1 | Call | $8.96 | N/A |
LAND 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.
LAND butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LAND. 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 LAND
Butterflies on LAND are pinning bets - traders use them when they expect LAND 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.
LAND thesis for this butterfly
The market-implied 1-standard-deviation range for LAND extends from approximately $7.63 on the downside to $9.43 on the upside. A LAND long call butterfly is a pinning play: it pays maximum at the middle strike if LAND settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LAND IV rank near 7.19% 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 LAND at 36.80%. As a Real Estate name, LAND options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAND-specific events.
LAND 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. LAND positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAND alongside the broader basket even when LAND-specific fundamentals are unchanged. Always rebuild the position from current LAND chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LAND?
- A butterfly on LAND is the butterfly strategy applied to LAND (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 LAND stock trading near $8.53, the strikes shown on this page are snapped to the nearest listed LAND chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LAND 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 LAND butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), 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 LAND butterfly?
- The breakeven for the LAND 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 LAND market-implied 1-standard-deviation expected move is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LAND?
- Butterflies on LAND are pinning bets - traders use them when they expect LAND 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 LAND implied volatility affect this butterfly?
- LAND ATM IV is at 36.80% with IV rank near 7.19%, 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.