NECB Butterfly Strategy
NECB (Northeast Community Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers investment advisory and financial planning services; and life insurance products and fixed-rate annuities.
NECB (Northeast Community Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $326.8M, a trailing P/E of 7.11, a beta of 0.36 versus the broader market, a 52-week range of 19.27-25.65, average daily share volume of 37K, a public-listing history dating back to 2006, approximately 136 full-time employees. These structural characteristics shape how NECB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.36 indicates NECB 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 7.11 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. NECB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NECB?
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 NECB snapshot
As of May 15, 2026, spot at $23.22, ATM IV 52.50%, IV rank 37.26%, expected move 15.05%. The butterfly on NECB 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 NECB specifically: NECB IV at 52.50% 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 15.05% (roughly $3.49 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 NECB expiries trade a higher absolute premium for lower per-day decay. Position sizing on NECB should anchor to the underlying notional of $23.22 per share and to the trader's directional view on NECB stock.
NECB butterfly setup
The NECB 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 NECB near $23.22, the first option leg uses a $22.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NECB 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 NECB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $22.06 | N/A |
| Sell 2 | Call | $23.22 | N/A |
| Buy 1 | Call | $24.38 | N/A |
NECB 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.
NECB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NECB. 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 NECB
Butterflies on NECB are pinning bets - traders use them when they expect NECB 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.
NECB thesis for this butterfly
The market-implied 1-standard-deviation range for NECB extends from approximately $19.73 on the downside to $26.71 on the upside. A NECB long call butterfly is a pinning play: it pays maximum at the middle strike if NECB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NECB IV rank near 37.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NECB should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NECB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NECB-specific events.
NECB 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. NECB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NECB alongside the broader basket even when NECB-specific fundamentals are unchanged. Always rebuild the position from current NECB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NECB?
- A butterfly on NECB is the butterfly strategy applied to NECB (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 NECB stock trading near $23.22, the strikes shown on this page are snapped to the nearest listed NECB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NECB 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 NECB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.50%), 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 NECB butterfly?
- The breakeven for the NECB 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 NECB market-implied 1-standard-deviation expected move is approximately 15.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NECB?
- Butterflies on NECB are pinning bets - traders use them when they expect NECB 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 NECB implied volatility affect this butterfly?
- NECB ATM IV is at 52.50% with IV rank near 37.26%, 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.