OMC Butterfly Strategy
OMC (Omnicom Group Inc.), in the Communication Services sector, (Advertising Agencies industry), listed on NYSE.
Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, retail marketing, sales support, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the United States, Canada, Puerto Rico, South America, Mexico, Europe, the Middle East, Africa, Australia, Greater China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries. The company was incorporated in 1944 and is based in New York, New York.
OMC (Omnicom Group Inc.) trades in the Communication Services sector, specifically Advertising Agencies, with a market capitalization of approximately $21.16B, a trailing P/E of 241.46, a beta of 0.68 versus the broader market, a 52-week range of 66.33-87.17, average daily share volume of 5.3M, a public-listing history dating back to 1980, approximately 120K full-time employees. These structural characteristics shape how OMC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates OMC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 241.46 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. OMC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OMC?
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 OMC snapshot
As of May 15, 2026, spot at $71.23, ATM IV 32.90%, IV rank 38.31%, expected move 9.43%. The butterfly on OMC 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 63-day expiry.
Why this butterfly structure on OMC specifically: OMC IV at 32.90% 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 9.43% (roughly $6.72 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OMC expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMC should anchor to the underlying notional of $71.23 per share and to the trader's directional view on OMC stock.
OMC butterfly setup
The OMC 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 OMC near $71.23, the first option leg uses a $67.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMC chain at a 63-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 OMC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $67.50 | $6.40 |
| Sell 2 | Call | $70.00 | $5.05 |
| Buy 1 | Call | $75.00 | $2.20 |
OMC butterfly risk and reward
- Net Premium / Debit
- +$150.00
- Max Profit (per contract)
- $383.87
- Max Loss (per contract)
- -$100.00
- Breakeven(s)
- $74.00
- Risk / Reward Ratio
- 3.839
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.
OMC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OMC. 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% | +$150.00 |
| $15.76 | -77.9% | +$150.00 |
| $31.51 | -55.8% | +$150.00 |
| $47.25 | -33.7% | +$150.00 |
| $63.00 | -11.5% | +$150.00 |
| $78.75 | +10.6% | -$100.00 |
| $94.50 | +32.7% | -$100.00 |
| $110.25 | +54.8% | -$100.00 |
| $126.00 | +76.9% | -$100.00 |
| $141.74 | +99.0% | -$100.00 |
When traders use butterfly on OMC
Butterflies on OMC are pinning bets - traders use them when they expect OMC 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.
OMC thesis for this butterfly
The market-implied 1-standard-deviation range for OMC extends from approximately $64.51 on the downside to $77.95 on the upside. A OMC long call butterfly is a pinning play: it pays maximum at the middle strike if OMC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OMC IV rank near 38.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on OMC should anchor more to the directional view and the expected-move geometry. As a Communication Services name, OMC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMC-specific events.
OMC 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. OMC positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OMC alongside the broader basket even when OMC-specific fundamentals are unchanged. Always rebuild the position from current OMC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OMC?
- A butterfly on OMC is the butterfly strategy applied to OMC (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 OMC stock trading near $71.23, the strikes shown on this page are snapped to the nearest listed OMC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OMC 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 OMC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $383.87 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OMC butterfly?
- The breakeven for the OMC butterfly priced on this page is roughly $74.00 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 OMC market-implied 1-standard-deviation expected move is approximately 9.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OMC?
- Butterflies on OMC are pinning bets - traders use them when they expect OMC 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 OMC implied volatility affect this butterfly?
- OMC ATM IV is at 32.90% with IV rank near 38.31%, 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.