OUST Butterfly Strategy
OUST (Ouster, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
Ouster, Inc. designs and manufactures high-resolution digital lidar sensors and enabling software that offers 3D vision to machinery, vehicles, robots, and fixed infrastructure assets. Its product portfolio includes OS, a scanning sensor and DF, a true solid-state flash sensor. The company is based in San Francisco, California.
OUST (Ouster, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $2.18B, a beta of 3.06 versus the broader market, a 52-week range of 9.77-41.65, average daily share volume of 2.3M, a public-listing history dating back to 2020, approximately 292 full-time employees. These structural characteristics shape how OUST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.06 indicates OUST 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 OUST?
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 OUST snapshot
As of May 15, 2026, spot at $35.13, ATM IV 115.05%, IV rank 68.56%, expected move 32.98%. The butterfly on OUST 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 OUST specifically: OUST IV at 115.05% 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 32.98% (roughly $11.59 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 OUST expiries trade a higher absolute premium for lower per-day decay. Position sizing on OUST should anchor to the underlying notional of $35.13 per share and to the trader's directional view on OUST stock.
OUST butterfly setup
The OUST 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 OUST near $35.13, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OUST 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 OUST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $33.00 | $5.50 |
| Sell 2 | Call | $35.00 | $4.50 |
| Buy 1 | Call | $37.00 | $3.80 |
OUST butterfly risk and reward
- Net Premium / Debit
- -$30.00
- Max Profit (per contract)
- $165.85
- Max Loss (per contract)
- -$30.00
- Breakeven(s)
- $33.30, $36.70
- Risk / Reward Ratio
- 5.528
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.
OUST butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OUST. 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% | -$30.00 |
| $7.78 | -77.9% | -$30.00 |
| $15.54 | -55.8% | -$30.00 |
| $23.31 | -33.6% | -$30.00 |
| $31.08 | -11.5% | -$30.00 |
| $38.84 | +10.6% | -$30.00 |
| $46.61 | +32.7% | -$30.00 |
| $54.37 | +54.8% | -$30.00 |
| $62.14 | +76.9% | -$30.00 |
| $69.91 | +99.0% | -$30.00 |
When traders use butterfly on OUST
Butterflies on OUST are pinning bets - traders use them when they expect OUST 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.
OUST thesis for this butterfly
The market-implied 1-standard-deviation range for OUST extends from approximately $23.54 on the downside to $46.72 on the upside. A OUST long call butterfly is a pinning play: it pays maximum at the middle strike if OUST settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OUST IV rank near 68.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on OUST should anchor more to the directional view and the expected-move geometry. As a Technology name, OUST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OUST-specific events.
OUST 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. OUST positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OUST alongside the broader basket even when OUST-specific fundamentals are unchanged. Always rebuild the position from current OUST chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OUST?
- A butterfly on OUST is the butterfly strategy applied to OUST (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 OUST stock trading near $35.13, the strikes shown on this page are snapped to the nearest listed OUST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OUST 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 OUST butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 115.05%), the computed maximum profit is $165.85 per contract and the computed maximum loss is -$30.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OUST butterfly?
- The breakeven for the OUST butterfly priced on this page is roughly $33.30 and $36.70 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 OUST market-implied 1-standard-deviation expected move is approximately 32.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OUST?
- Butterflies on OUST are pinning bets - traders use them when they expect OUST 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 OUST implied volatility affect this butterfly?
- OUST ATM IV is at 115.05% with IV rank near 68.56%, 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.