PRK Butterfly Strategy
PRK (Park National Corporation), in the Financial Services sector, (Banks - Regional industry), listed on AMEX.
Park National Corporation serves as the holding company for Park National Bank, delivering diverse commercial banking and trust services, largely targeting communities within small and medium-sized population centers. For its individual clientele, the bank offers a variety of deposit accounts, such as checking, savings, and time deposits. It also provides wealth management and trust administration, cash management, secure safe deposit facilities, electronic funds transfer services, and advanced digital banking features, including online and mobile platforms with bill payment options, along with credit cards and numerous other personal banking conveniences. Additionally, the corporation extends commercial loans tailored for various business requirements, encompassing funding for industrial and commercial real estate, equipment purchases, inventory and accounts receivable financing, corporate acquisitions, and commercial leasing. Lending to consumer finance companies is also part of its portfolio. Its suite of services further includes commercial real estate loans, which provide mortgages for property developers and owners.
PRK (Park National Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.33B, a trailing P/E of 17.82, a beta of 0.70 versus the broader market, a 52-week range of 149.06-184.52, average daily share volume of 95K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how PRK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 indicates PRK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PRK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PRK?
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 PRK snapshot
As of June 26, 2026, spot at $181.34, ATM IV 32.90%, IV rank 34.08%, expected move 9.43%. The butterfly on PRK 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 80-day expiry.
Why this butterfly structure on PRK specifically: PRK 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 $17.10 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRK should anchor to the underlying notional of $181.34 per share and to the trader's directional view on PRK stock.
PRK butterfly setup
The PRK 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 PRK near $181.34, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRK chain at a 80-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 PRK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $170.00 | $17.00 |
| Sell 2 | Call | $180.00 | $10.00 |
| Buy 1 | Call | $190.00 | $5.05 |
PRK butterfly risk and reward
- Net Premium / Debit
- -$205.00
- Max Profit (per contract)
- $751.62
- Max Loss (per contract)
- -$205.00
- Breakeven(s)
- $172.05, $187.95
- Risk / Reward Ratio
- 3.666
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.
PRK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PRK. 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% | -$205.00 |
| $40.10 | -77.9% | -$205.00 |
| $80.20 | -55.8% | -$205.00 |
| $120.29 | -33.7% | -$205.00 |
| $160.39 | -11.6% | -$205.00 |
| $200.48 | +10.6% | -$205.00 |
| $240.58 | +32.7% | -$205.00 |
| $280.67 | +54.8% | -$205.00 |
| $320.76 | +76.9% | -$205.00 |
| $360.86 | +99.0% | -$205.00 |
When traders use butterfly on PRK
Butterflies on PRK are pinning bets - traders use them when they expect PRK 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.
PRK thesis for this butterfly
The market-implied 1-standard-deviation range for PRK extends from approximately $164.24 on the downside to $198.44 on the upside. A PRK long call butterfly is a pinning play: it pays maximum at the middle strike if PRK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PRK IV rank near 34.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PRK should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PRK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRK-specific events.
PRK 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. PRK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRK alongside the broader basket even when PRK-specific fundamentals are unchanged. Always rebuild the position from current PRK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PRK?
- A butterfly on PRK is the butterfly strategy applied to PRK (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 PRK stock trading near $181.34, the strikes shown on this page are snapped to the nearest listed PRK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRK 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 PRK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $751.62 per contract and the computed maximum loss is -$205.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRK butterfly?
- The breakeven for the PRK butterfly priced on this page is roughly $172.05 and $187.95 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 PRK 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 PRK?
- Butterflies on PRK are pinning bets - traders use them when they expect PRK 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 PRK implied volatility affect this butterfly?
- PRK ATM IV is at 32.90% with IV rank near 34.08%, 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.