OBK Butterfly Strategy
OBK (Origin Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Origin Bancorp, Inc. acts as the parent organization for Origin Bank, delivering a comprehensive range of banking and financial services. Its diverse clientele includes small to mid-sized businesses, municipal entities, and individual consumers across its operating regions of Texas, Louisiana, and Mississippi. The bank's offerings encompass various deposit accounts, such as interest-bearing and non-interest-bearing checking accounts, savings deposits, money market accounts, and time deposits. On the lending side, Origin Bank provides a broad spectrum of loan products, including commercial and residential real estate, construction and land development, consumer, commercial and industrial, mortgage warehouse, residential mortgage, and Paycheck Protection Program (PPP) loans. Beyond core banking, the company also offers personal and commercial property and casualty insurance products. Customers benefit from an extensive suite of digital and convenience services, such as internet banking, voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit boxes, U.S. savings bonds, and automated account transfer services.
OBK (Origin Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.67B, a trailing P/E of 16.73, a beta of 0.71 versus the broader market, a 52-week range of 32.125-55.57, average daily share volume of 168K, a public-listing history dating back to 2018, approximately 988 full-time employees. These structural characteristics shape how OBK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places OBK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OBK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OBK?
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.
OBK snapshot
As of August 14, 2026, spot at $54.61, ATM IV 37.70%, IV rank 10.33%, expected move 10.81%. The butterfly on OBK 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 OBK specifically: OBK IV at 37.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a OBK butterfly, with a market-implied 1-standard-deviation move of approximately 10.81% (roughly $5.90 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 OBK expiries trade a higher absolute premium for lower per-day decay. Position sizing on OBK should anchor to the underlying notional of $54.61 per share and to the trader's directional view on OBK stock.
OBK butterfly setup
The OBK 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 OBK at $54.61 on that close, the first option leg uses a $51.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OBK 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 OBK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $51.88 | N/A |
| Sell 2 | Call | $54.61 | N/A |
| Buy 1 | Call | $57.34 | N/A |
OBK 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.
OBK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OBK. 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 OBK
Butterflies on OBK are pinning bets - traders use them when they expect OBK 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.
OBK thesis for this butterfly
The market-implied 1-standard-deviation range for OBK extends from approximately $48.71 on the downside to $60.51 on the upside. A OBK long call butterfly is a pinning play: it pays maximum at the middle strike if OBK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OBK IV rank near 10.33% 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 OBK at 37.70%. As a Financial Services name, OBK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OBK-specific events.
OBK 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. OBK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OBK alongside the broader basket even when OBK-specific fundamentals are unchanged. Always rebuild the position from current OBK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OBK?
- A butterfly on OBK is the butterfly strategy applied to OBK (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 OBK stock at $54.61 on the most recent close, the strikes shown on this page are snapped to the nearest listed OBK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OBK 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 OBK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.70%), 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 OBK butterfly?
- The breakeven for the OBK 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 OBK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OBK?
- Butterflies on OBK are pinning bets - traders use them when they expect OBK 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 OBK implied volatility affect this butterfly?
- OBK ATM IV is at 37.70% with IV rank near 10.33%, 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.