NCNO Butterfly Strategy
NCNO (nCino, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
nCino, Inc. operates as a software-as-a-service (SaaS) provider, delivering cloud-based applications to financial organizations both within the United States and internationally. Its core product, the nCino Bank Operating System, is a multi-tenant cloud platform. This system is engineered to digitalize, automate, and streamline complex operational processes and workflows. By harnessing data analytics, artificial intelligence, and machine learning (AI/ML), it empowers banks and credit unions to efficiently manage new client onboarding, originate and oversee the complete loan lifecycle, facilitate the opening of various accounts (including deposits), and ensure regulatory adherence. Another key offering is nCino IQ, an application suite that utilizes data analytics and AI/ML to provide customers with both automation and valuable operational insights. This includes tools for assessing, quantifying, and managing credit risk, alongside enhancing their capabilities to meet regulatory obligations.
NCNO (nCino, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $2.08B, a trailing P/E of 155.48, a beta of 0.66 versus the broader market, a 52-week range of 13.8-33.92, average daily share volume of 3.5M, a public-listing history dating back to 2020, approximately 2K full-time employees. These structural characteristics shape how NCNO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates NCNO 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 155.48 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on NCNO?
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.
NCNO snapshot
As of August 14, 2026, spot at $20.68, ATM IV 71.60%, IV rank 28.72%, expected move 20.53%. The butterfly on NCNO 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 NCNO specifically: NCNO IV at 71.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a NCNO butterfly, with a market-implied 1-standard-deviation move of approximately 20.53% (roughly $4.25 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 NCNO expiries trade a higher absolute premium for lower per-day decay. Position sizing on NCNO should anchor to the underlying notional of $20.68 per share and to the trader's directional view on NCNO stock.
NCNO butterfly setup
The NCNO 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 NCNO at $20.68 on that close, the first option leg uses a $19.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NCNO 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 NCNO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $19.65 | N/A |
| Sell 2 | Call | $20.68 | N/A |
| Buy 1 | Call | $21.71 | N/A |
NCNO 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.
NCNO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NCNO. 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 NCNO
Butterflies on NCNO are pinning bets - traders use them when they expect NCNO 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.
NCNO thesis for this butterfly
The market-implied 1-standard-deviation range for NCNO extends from approximately $16.43 on the downside to $24.93 on the upside. A NCNO long call butterfly is a pinning play: it pays maximum at the middle strike if NCNO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NCNO IV rank near 28.72% 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 NCNO at 71.60%. As a Technology name, NCNO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NCNO-specific events.
NCNO 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. NCNO positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NCNO alongside the broader basket even when NCNO-specific fundamentals are unchanged. Always rebuild the position from current NCNO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NCNO?
- A butterfly on NCNO is the butterfly strategy applied to NCNO (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 NCNO stock at $20.68 on the most recent close, the strikes shown on this page are snapped to the nearest listed NCNO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NCNO 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 NCNO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 71.60%), 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 NCNO butterfly?
- The breakeven for the NCNO 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 NCNO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NCNO?
- Butterflies on NCNO are pinning bets - traders use them when they expect NCNO 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 NCNO implied volatility affect this butterfly?
- NCNO ATM IV is at 71.60% with IV rank near 28.72%, 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.