ONON Butterfly Strategy
ONON (On Holding AG), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.
On Holding AG develops and distributes sports products worldwide. It offers athletic footwear, apparel, and accessories. The company offers its products through independent retailers and distributors, online, and stores. On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.
ONON (On Holding AG) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $11.80B, a trailing P/E of 36.39, a beta of 2.09 versus the broader market, a 52-week range of 31.41-61.288, average daily share volume of 6.9M, a public-listing history dating back to 2021, approximately 3K full-time employees. These structural characteristics shape how ONON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.09 indicates ONON 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 36.39 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.
What is a butterfly on ONON?
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 ONON snapshot
As of May 15, 2026, spot at $37.36, ATM IV 47.21%, IV rank 39.72%, expected move 13.54%. The butterfly on ONON 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 ONON specifically: ONON IV at 47.21% 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 13.54% (roughly $5.06 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 ONON expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONON should anchor to the underlying notional of $37.36 per share and to the trader's directional view on ONON stock.
ONON butterfly setup
The ONON 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 ONON near $37.36, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONON 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 ONON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $3.32 |
| Sell 2 | Call | $37.00 | $2.19 |
| Buy 1 | Call | $39.00 | $1.30 |
ONON butterfly risk and reward
- Net Premium / Debit
- -$23.50
- Max Profit (per contract)
- $158.77
- Max Loss (per contract)
- -$23.50
- Breakeven(s)
- $35.22, $38.78
- Risk / Reward Ratio
- 6.756
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.
ONON butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ONON. 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% | -$23.50 |
| $8.27 | -77.9% | -$23.50 |
| $16.53 | -55.8% | -$23.50 |
| $24.79 | -33.7% | -$23.50 |
| $33.05 | -11.5% | -$23.50 |
| $41.31 | +10.6% | -$23.50 |
| $49.57 | +32.7% | -$23.50 |
| $57.83 | +54.8% | -$23.50 |
| $66.09 | +76.9% | -$23.50 |
| $74.34 | +99.0% | -$23.50 |
When traders use butterfly on ONON
Butterflies on ONON are pinning bets - traders use them when they expect ONON 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.
ONON thesis for this butterfly
The market-implied 1-standard-deviation range for ONON extends from approximately $32.30 on the downside to $42.42 on the upside. A ONON long call butterfly is a pinning play: it pays maximum at the middle strike if ONON settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ONON IV rank near 39.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ONON should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, ONON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONON-specific events.
ONON 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. ONON positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONON alongside the broader basket even when ONON-specific fundamentals are unchanged. Always rebuild the position from current ONON chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ONON?
- A butterfly on ONON is the butterfly strategy applied to ONON (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 ONON stock trading near $37.36, the strikes shown on this page are snapped to the nearest listed ONON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ONON 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 ONON butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.21%), the computed maximum profit is $158.77 per contract and the computed maximum loss is -$23.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ONON butterfly?
- The breakeven for the ONON butterfly priced on this page is roughly $35.22 and $38.78 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 ONON market-implied 1-standard-deviation expected move is approximately 13.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ONON?
- Butterflies on ONON are pinning bets - traders use them when they expect ONON 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 ONON implied volatility affect this butterfly?
- ONON ATM IV is at 47.21% with IV rank near 39.72%, 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.