OFRM Butterfly Strategy
OFRM (Once Upon A Farm Pbc), in the Consumer Defensive sector, (Packaged Foods industry), listed on NYSE.
Once Upon A Farm, PBC produces and sells organic baby food pouches, meals, and snacks for children. The company provides products that include blends and meals made with organic ingredients, which are cold-pressed or freshly frozen. It also produces soft-baked bars for toddlers and children, suitable for lunchboxes and on-the-go consumption. Its offerings are available for delivery and can be purchased through its website. The company was founded in 2017 and is based in Berkeley, California.
OFRM (Once Upon A Farm Pbc) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $113.8M, a beta of 0.00 versus the broader market, a 52-week range of 14-27, average daily share volume of 572K, a public-listing history dating back to 2015, approximately 144 full-time employees. These structural characteristics shape how OFRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates OFRM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on OFRM?
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 OFRM snapshot
As of May 15, 2026, spot at $15.87, ATM IV 71.90%, expected move 20.61%. The butterfly on OFRM 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 OFRM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for OFRM is inferred from ATM IV at 71.90% alone, with a market-implied 1-standard-deviation move of approximately 20.61% (roughly $3.27 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 OFRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on OFRM should anchor to the underlying notional of $15.87 per share and to the trader's directional view on OFRM stock.
OFRM butterfly setup
The OFRM 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 OFRM near $15.87, the first option leg uses a $15.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OFRM 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 OFRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.08 | N/A |
| Sell 2 | Call | $15.87 | N/A |
| Buy 1 | Call | $16.66 | N/A |
OFRM 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.
OFRM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OFRM. 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 OFRM
Butterflies on OFRM are pinning bets - traders use them when they expect OFRM 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.
OFRM thesis for this butterfly
The market-implied 1-standard-deviation range for OFRM extends from approximately $12.60 on the downside to $19.14 on the upside. A OFRM long call butterfly is a pinning play: it pays maximum at the middle strike if OFRM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Consumer Defensive name, OFRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OFRM-specific events.
OFRM 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. OFRM positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OFRM alongside the broader basket even when OFRM-specific fundamentals are unchanged. Always rebuild the position from current OFRM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OFRM?
- A butterfly on OFRM is the butterfly strategy applied to OFRM (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 OFRM stock trading near $15.87, the strikes shown on this page are snapped to the nearest listed OFRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OFRM 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 OFRM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 71.90%), 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 OFRM butterfly?
- The breakeven for the OFRM 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 OFRM market-implied 1-standard-deviation expected move is approximately 20.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OFRM?
- Butterflies on OFRM are pinning bets - traders use them when they expect OFRM 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 OFRM implied volatility affect this butterfly?
- Current OFRM ATM IV is 71.90%; IV rank context is unavailable in the current snapshot.