OLP Butterfly Strategy
OLP (One Liberty Properties, Inc.), in the Real Estate sector, (REIT - Diversified industry), listed on NYSE.
One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness and theater properties. Many of these properties are subject to long term net leases under which the tenant is typically responsible for the property's real estate taxes, insurance and ordinary maintenance and repairs.
OLP (One Liberty Properties, Inc.) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $506.2M, a trailing P/E of 20.30, a beta of 0.93 versus the broader market, a 52-week range of 19.62-25.9, average daily share volume of 70K, a public-listing history dating back to 1983, approximately 10 full-time employees. These structural characteristics shape how OLP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places OLP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OLP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OLP?
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 OLP snapshot
As of May 15, 2026, spot at $22.41, ATM IV 79.50%, IV rank 24.98%, expected move 22.79%. The butterfly on OLP 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 OLP specifically: OLP IV at 79.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a OLP butterfly, with a market-implied 1-standard-deviation move of approximately 22.79% (roughly $5.11 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 OLP expiries trade a higher absolute premium for lower per-day decay. Position sizing on OLP should anchor to the underlying notional of $22.41 per share and to the trader's directional view on OLP stock.
OLP butterfly setup
The OLP 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 OLP near $22.41, the first option leg uses a $21.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OLP 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 OLP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $21.29 | N/A |
| Sell 2 | Call | $22.41 | N/A |
| Buy 1 | Call | $23.53 | N/A |
OLP 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.
OLP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OLP. 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 OLP
Butterflies on OLP are pinning bets - traders use them when they expect OLP 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.
OLP thesis for this butterfly
The market-implied 1-standard-deviation range for OLP extends from approximately $17.30 on the downside to $27.52 on the upside. A OLP long call butterfly is a pinning play: it pays maximum at the middle strike if OLP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OLP IV rank near 24.98% 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 OLP at 79.50%. As a Real Estate name, OLP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OLP-specific events.
OLP 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. OLP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OLP alongside the broader basket even when OLP-specific fundamentals are unchanged. Always rebuild the position from current OLP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OLP?
- A butterfly on OLP is the butterfly strategy applied to OLP (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 OLP stock trading near $22.41, the strikes shown on this page are snapped to the nearest listed OLP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OLP 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 OLP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 79.50%), 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 OLP butterfly?
- The breakeven for the OLP 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 OLP market-implied 1-standard-deviation expected move is approximately 22.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OLP?
- Butterflies on OLP are pinning bets - traders use them when they expect OLP 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 OLP implied volatility affect this butterfly?
- OLP ATM IV is at 79.50% with IV rank near 24.98%, 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.