ODD Butterfly Strategy
ODD (Oddity Tech Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Oddity Tech Ltd., together with its subsidiaries, operates as a consumer-tech company worldwide. The company provides beauty and wellness products utilizing its PowerMatch technology. It builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries. The company offers products for face and complexion, eyes and brows, lips, and skin care under the IL MAKIAGE brand; and hair and skin care products under the SpoiledChild brand. The company was incorporated in 2013 and is based in Tel Aviv-Jaffa, Israel.
ODD (Oddity Tech Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $720.6M, a trailing P/E of 6.57, a beta of 2.58 versus the broader market, a 52-week range of 10.8-79.18, average daily share volume of 2.4M, a public-listing history dating back to 2023, approximately 489 full-time employees. These structural characteristics shape how ODD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.58 indicates ODD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 6.57 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on ODD?
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 ODD snapshot
As of May 15, 2026, spot at $12.60, ATM IV 104.54%, IV rank 74.53%, expected move 29.97%. The butterfly on ODD 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 28-day expiry.
Why this butterfly structure on ODD specifically: ODD IV at 104.54% is rich versus its 1-year range, which makes a premium-buying ODD butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 29.97% (roughly $3.78 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ODD expiries trade a higher absolute premium for lower per-day decay. Position sizing on ODD should anchor to the underlying notional of $12.60 per share and to the trader's directional view on ODD stock.
ODD butterfly setup
The ODD 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 ODD near $12.60, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ODD chain at a 28-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 ODD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.00 | $1.80 |
| Sell 2 | Call | $13.00 | $1.33 |
| Buy 1 | Call | $13.00 | $1.33 |
ODD butterfly risk and reward
- Net Premium / Debit
- -$47.50
- Max Profit (per contract)
- $52.50
- Max Loss (per contract)
- -$47.50
- Breakeven(s)
- $12.48
- Risk / Reward Ratio
- 1.105
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.
ODD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ODD. 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 | -99.9% | -$47.50 |
| $2.79 | -77.8% | -$47.50 |
| $5.58 | -55.7% | -$47.50 |
| $8.36 | -33.6% | -$47.50 |
| $11.15 | -11.5% | -$47.50 |
| $13.93 | +10.6% | +$52.50 |
| $16.72 | +32.7% | +$52.50 |
| $19.50 | +54.8% | +$52.50 |
| $22.29 | +76.9% | +$52.50 |
| $25.07 | +99.0% | +$52.50 |
When traders use butterfly on ODD
Butterflies on ODD are pinning bets - traders use them when they expect ODD 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.
ODD thesis for this butterfly
The market-implied 1-standard-deviation range for ODD extends from approximately $8.82 on the downside to $16.38 on the upside. A ODD long call butterfly is a pinning play: it pays maximum at the middle strike if ODD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ODD IV rank near 74.53% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ODD at 104.54%. As a Technology name, ODD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ODD-specific events.
ODD 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. ODD positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ODD alongside the broader basket even when ODD-specific fundamentals are unchanged. Always rebuild the position from current ODD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ODD?
- A butterfly on ODD is the butterfly strategy applied to ODD (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 ODD stock trading near $12.60, the strikes shown on this page are snapped to the nearest listed ODD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ODD 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 ODD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 104.54%), the computed maximum profit is $52.50 per contract and the computed maximum loss is -$47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ODD butterfly?
- The breakeven for the ODD butterfly priced on this page is roughly $12.48 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 ODD market-implied 1-standard-deviation expected move is approximately 29.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ODD?
- Butterflies on ODD are pinning bets - traders use them when they expect ODD 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 ODD implied volatility affect this butterfly?
- ODD ATM IV is at 104.54% with IV rank near 74.53%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.