OPY Butterfly Strategy
OPY (Oppenheimer Holdings Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NYSE.
Oppenheimer Holdings Inc., through its subsidiaries, operates as a middle-market investment bank and full-service broker-dealer in the Americas, Europe, the Middle East, and Asia. The company offers brokerage services covering exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, exchange-traded funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It also provides asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, non-discretionary investment advisory and consultation services, alternative investments, portfolio enhancement programs, and institutional taxable fixed income portfolio management strategies and solutions, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, and debt capital market products and services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, and trading services. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; repurchase agreements and securities lending services; and proprietary trading and investment activities. Additionally, the company offers underwritings, market-making, trust, and discount services.
OPY (Oppenheimer Holdings Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $1.00B, a trailing P/E of 10.33, a beta of 1.18 versus the broader market, a 52-week range of 61.26-118.77, average daily share volume of 65K, a public-listing history dating back to 1982, approximately 3K full-time employees. These structural characteristics shape how OPY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places OPY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.33 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. OPY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OPY?
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 OPY snapshot
As of May 15, 2026, spot at $93.69, ATM IV 40.90%, IV rank 4.24%, expected move 11.73%. The butterfly on OPY 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 OPY specifically: OPY IV at 40.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a OPY butterfly, with a market-implied 1-standard-deviation move of approximately 11.73% (roughly $10.99 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 OPY expiries trade a higher absolute premium for lower per-day decay. Position sizing on OPY should anchor to the underlying notional of $93.69 per share and to the trader's directional view on OPY stock.
OPY butterfly setup
The OPY 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 OPY near $93.69, the first option leg uses a $89.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OPY 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 OPY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $89.00 | $7.50 |
| Sell 2 | Call | $94.00 | $4.70 |
| Buy 1 | Call | $99.00 | $2.65 |
OPY butterfly risk and reward
- Net Premium / Debit
- -$75.00
- Max Profit (per contract)
- $408.42
- Max Loss (per contract)
- -$75.00
- Breakeven(s)
- $89.75, $98.25
- Risk / Reward Ratio
- 5.446
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.
OPY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OPY. 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% | -$75.00 |
| $20.72 | -77.9% | -$75.00 |
| $41.44 | -55.8% | -$75.00 |
| $62.15 | -33.7% | -$75.00 |
| $82.87 | -11.6% | -$75.00 |
| $103.58 | +10.6% | -$75.00 |
| $124.30 | +32.7% | -$75.00 |
| $145.01 | +54.8% | -$75.00 |
| $165.72 | +76.9% | -$75.00 |
| $186.44 | +99.0% | -$75.00 |
When traders use butterfly on OPY
Butterflies on OPY are pinning bets - traders use them when they expect OPY 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.
OPY thesis for this butterfly
The market-implied 1-standard-deviation range for OPY extends from approximately $82.70 on the downside to $104.68 on the upside. A OPY long call butterfly is a pinning play: it pays maximum at the middle strike if OPY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OPY IV rank near 4.24% 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 OPY at 40.90%. As a Financial Services name, OPY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OPY-specific events.
OPY 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. OPY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OPY alongside the broader basket even when OPY-specific fundamentals are unchanged. Always rebuild the position from current OPY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OPY?
- A butterfly on OPY is the butterfly strategy applied to OPY (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 OPY stock trading near $93.69, the strikes shown on this page are snapped to the nearest listed OPY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OPY 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 OPY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.90%), the computed maximum profit is $408.42 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OPY butterfly?
- The breakeven for the OPY butterfly priced on this page is roughly $89.75 and $98.25 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 OPY market-implied 1-standard-deviation expected move is approximately 11.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OPY?
- Butterflies on OPY are pinning bets - traders use them when they expect OPY 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 OPY implied volatility affect this butterfly?
- OPY ATM IV is at 40.90% with IV rank near 4.24%, 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.