OC Butterfly Strategy
OC (Owens Corning), in the Industrials sector, (Construction industry), listed on NYSE.
Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and other specialized products. Its products are used in building structures, roofing shingles, tubs and showers, pools, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades applications in the building and construction, renewable energy, and infrastructure markets. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The Insulation segment manufactures and sells insulation products for residential, commercial, industrial, and other markets for thermal and acoustical applications; and glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, cellular glass insulation, and foam insulation products used in construction applications.
OC (Owens Corning) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $9.55B, a beta of 1.35 versus the broader market, a 52-week range of 97.53-159.42, average daily share volume of 1.4M, a public-listing history dating back to 2006, approximately 25K full-time employees. These structural characteristics shape how OC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates OC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. OC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OC?
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 OC snapshot
As of May 15, 2026, spot at $115.26, ATM IV 38.40%, IV rank 30.60%, expected move 11.01%. The butterfly on OC 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 OC specifically: OC IV at 38.40% 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 11.01% (roughly $12.69 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 OC expiries trade a higher absolute premium for lower per-day decay. Position sizing on OC should anchor to the underlying notional of $115.26 per share and to the trader's directional view on OC stock.
OC butterfly setup
The OC 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 OC near $115.26, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OC 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 OC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $110.00 | $8.65 |
| Sell 2 | Call | $115.00 | $5.65 |
| Buy 1 | Call | $120.00 | $3.45 |
OC butterfly risk and reward
- Net Premium / Debit
- -$80.00
- Max Profit (per contract)
- $388.58
- Max Loss (per contract)
- -$80.00
- Breakeven(s)
- $110.80, $119.20
- Risk / Reward Ratio
- 4.857
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.
OC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OC. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$80.00 |
| $25.49 | -77.9% | -$80.00 |
| $50.98 | -55.8% | -$80.00 |
| $76.46 | -33.7% | -$80.00 |
| $101.94 | -11.6% | -$80.00 |
| $127.43 | +10.6% | -$80.00 |
| $152.91 | +32.7% | -$80.00 |
| $178.39 | +54.8% | -$80.00 |
| $203.88 | +76.9% | -$80.00 |
| $229.36 | +99.0% | -$80.00 |
When traders use butterfly on OC
Butterflies on OC are pinning bets - traders use them when they expect OC 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.
OC thesis for this butterfly
The market-implied 1-standard-deviation range for OC extends from approximately $102.57 on the downside to $127.95 on the upside. A OC long call butterfly is a pinning play: it pays maximum at the middle strike if OC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OC IV rank near 30.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on OC should anchor more to the directional view and the expected-move geometry. As a Industrials name, OC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OC-specific events.
OC 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. OC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OC alongside the broader basket even when OC-specific fundamentals are unchanged. Always rebuild the position from current OC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OC?
- A butterfly on OC is the butterfly strategy applied to OC (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 OC stock trading near $115.26, the strikes shown on this page are snapped to the nearest listed OC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OC 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 OC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.40%), the computed maximum profit is $388.58 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OC butterfly?
- The breakeven for the OC butterfly priced on this page is roughly $110.80 and $119.20 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 OC market-implied 1-standard-deviation expected move is approximately 11.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OC?
- Butterflies on OC are pinning bets - traders use them when they expect OC 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 OC implied volatility affect this butterfly?
- OC ATM IV is at 38.40% with IV rank near 30.60%, 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.