OCFC Butterfly Strategy
OCFC (OceanFirst Financial Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing demand deposits, and time deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, wealth management, and trust and asset management services; and sells alternative investment products and life insurance products.
OCFC (OceanFirst Financial Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.05B, a trailing P/E of 14.82, a beta of 0.99 versus the broader market, a 52-week range of 16.09-20.61, average daily share volume of 678K, a public-listing history dating back to 1996, approximately 975 full-time employees. These structural characteristics shape how OCFC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places OCFC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OCFC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OCFC?
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 OCFC snapshot
As of May 15, 2026, spot at $18.21, ATM IV 39.40%, IV rank 6.48%, expected move 11.30%. The butterfly on OCFC 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 OCFC specifically: OCFC IV at 39.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a OCFC butterfly, with a market-implied 1-standard-deviation move of approximately 11.30% (roughly $2.06 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 OCFC expiries trade a higher absolute premium for lower per-day decay. Position sizing on OCFC should anchor to the underlying notional of $18.21 per share and to the trader's directional view on OCFC stock.
OCFC butterfly setup
The OCFC 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 OCFC near $18.21, the first option leg uses a $17.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OCFC 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 OCFC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.30 | N/A |
| Sell 2 | Call | $18.21 | N/A |
| Buy 1 | Call | $19.12 | N/A |
OCFC 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.
OCFC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OCFC. 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 OCFC
Butterflies on OCFC are pinning bets - traders use them when they expect OCFC 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.
OCFC thesis for this butterfly
The market-implied 1-standard-deviation range for OCFC extends from approximately $16.15 on the downside to $20.27 on the upside. A OCFC long call butterfly is a pinning play: it pays maximum at the middle strike if OCFC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OCFC IV rank near 6.48% 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 OCFC at 39.40%. As a Financial Services name, OCFC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OCFC-specific events.
OCFC 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. OCFC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OCFC alongside the broader basket even when OCFC-specific fundamentals are unchanged. Always rebuild the position from current OCFC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OCFC?
- A butterfly on OCFC is the butterfly strategy applied to OCFC (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 OCFC stock trading near $18.21, the strikes shown on this page are snapped to the nearest listed OCFC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OCFC 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 OCFC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 39.40%), 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 OCFC butterfly?
- The breakeven for the OCFC 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 OCFC market-implied 1-standard-deviation expected move is approximately 11.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OCFC?
- Butterflies on OCFC are pinning bets - traders use them when they expect OCFC 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 OCFC implied volatility affect this butterfly?
- OCFC ATM IV is at 39.40% with IV rank near 6.48%, 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.