OPEN Butterfly Strategy
OPEN (Opendoor Technologies Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NASDAQ.
Founded in 2013, Opendoor Technologies Inc. provides a digital ecosystem for residential real estate transactions throughout the United States. This platform allows individuals to efficiently purchase and sell homes entirely online. Based in Tempe, Arizona, the company further offers supporting services like title insurance and escrow.
OPEN (Opendoor Technologies Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $3.37B, a beta of 3.59 versus the broader market, a 52-week range of 2.26-10.87, average daily share volume of 49.9M, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how OPEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.59 indicates OPEN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on OPEN?
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.
OPEN snapshot
As of August 14, 2026, spot at $3.63, ATM IV 70.41%, IV rank 0.94%, expected move 20.19%. The butterfly on OPEN below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this butterfly structure on OPEN specifically: OPEN IV at 70.41% is on the cheap side of its 1-year range, which favors premium-buying structures like a OPEN butterfly, with a market-implied 1-standard-deviation move of approximately 20.19% (roughly $0.73 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OPEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on OPEN should anchor to the underlying notional of $3.63 per share and to the trader's directional view on OPEN stock.
OPEN butterfly setup
The OPEN butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With OPEN at $3.63 on that close, the first option leg uses a $3.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OPEN chain at a 7-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 OPEN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.50 | $0.21 |
| Sell 2 | Call | $3.50 | $0.21 |
| Buy 1 | Call | $4.00 | $0.05 |
OPEN butterfly risk and reward
- Net Premium / Debit
- +$16.00
- Max Profit (per contract)
- $16.00
- Max Loss (per contract)
- -$34.00
- Breakeven(s)
- $3.66
- Risk / Reward Ratio
- 0.471
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.
OPEN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OPEN. 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 | -99.7% | +$16.00 |
| $0.81 | -77.6% | +$16.00 |
| $1.61 | -55.6% | +$16.00 |
| $2.41 | -33.5% | +$16.00 |
| $3.22 | -11.4% | +$16.00 |
| $4.02 | +10.7% | -$34.00 |
| $4.82 | +32.8% | -$34.00 |
| $5.62 | +54.8% | -$34.00 |
| $6.42 | +76.9% | -$34.00 |
| $7.22 | +99.0% | -$34.00 |
When traders use butterfly on OPEN
Butterflies on OPEN are pinning bets - traders use them when they expect OPEN 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.
OPEN thesis for this butterfly
The market-implied 1-standard-deviation range for OPEN extends from approximately $2.90 on the downside to $4.36 on the upside. A OPEN long call butterfly is a pinning play: it pays maximum at the middle strike if OPEN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OPEN IV rank near 0.94% 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 OPEN at 70.41%. As a Real Estate name, OPEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OPEN-specific events.
OPEN 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. OPEN positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OPEN alongside the broader basket even when OPEN-specific fundamentals are unchanged. Always rebuild the position from current OPEN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OPEN?
- A butterfly on OPEN is the butterfly strategy applied to OPEN (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 OPEN stock at $3.63 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OPEN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OPEN 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 OPEN butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 70.41%), the computed maximum profit is $16.00 per contract and the computed maximum loss is -$34.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OPEN butterfly?
- The breakeven for the OPEN butterfly priced on this page is roughly $3.66 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The OPEN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OPEN?
- Butterflies on OPEN are pinning bets - traders use them when they expect OPEN 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 OPEN implied volatility affect this butterfly?
- OPEN ATM IV is at 70.41% with IV rank near 0.94%, 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.