PRTS Butterfly Strategy
PRTS (CarParts.com, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NASDAQ.
CarParts.com, Inc., and its associated enterprises, functions as a leading online distributor of aftermarket automotive components and accessories across both the United States and the Philippines. The company provides an extensive selection of vehicle parts, encompassing replacement items like exterior body panels, mirror systems, various engine and chassis assemblies, and other mechanical and electrical components, in addition to performance upgrades and aesthetic accessories. These products are primarily sold to individual customers through its network of proprietary e-commerce platforms and various third-party online marketplaces. Beyond direct consumer sales, CarParts.com also serves the B2B sector by supplying automotive parts to collision repair facilities. Furthermore, it markets Kool-Vue branded products to wholesale auto parts distributors and offers aftermarket catalytic converters under its Evan Fischer label. The company's prominent digital storefronts include www.carparts.com, www.jcwhitney.com, www.autopartswarehouse.com, and www.usautoparts.com.
PRTS (CarParts.com, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $50.4M, a beta of 0.68 versus the broader market, a 52-week range of 3.7-13.6, average daily share volume of 56K, a public-listing history dating back to 2007, approximately 1K full-time employees. These structural characteristics shape how PRTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates PRTS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on PRTS?
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 PRTS snapshot
As of June 30, 2026, spot at $6.59, ATM IV 125.40%, IV rank 24.17%, expected move 35.95%. The butterfly on PRTS 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 17-day expiry.
Why this butterfly structure on PRTS specifically: PRTS IV at 125.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a PRTS butterfly, with a market-implied 1-standard-deviation move of approximately 35.95% (roughly $2.37 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRTS should anchor to the underlying notional of $6.59 per share and to the trader's directional view on PRTS stock.
PRTS butterfly setup
The PRTS 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 PRTS near $6.59, the first option leg uses a $6.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRTS chain at a 17-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 PRTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.26 | N/A |
| Sell 2 | Call | $6.59 | N/A |
| Buy 1 | Call | $6.92 | N/A |
PRTS butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
PRTS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PRTS. 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.
When traders use butterfly on PRTS
Butterflies on PRTS are pinning bets - traders use them when they expect PRTS 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.
PRTS thesis for this butterfly
The market-implied 1-standard-deviation range for PRTS extends from approximately $4.22 on the downside to $8.96 on the upside. A PRTS long call butterfly is a pinning play: it pays maximum at the middle strike if PRTS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PRTS IV rank near 24.17% 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 PRTS at 125.40%. As a Consumer Cyclical name, PRTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRTS-specific events.
PRTS 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. PRTS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRTS alongside the broader basket even when PRTS-specific fundamentals are unchanged. Always rebuild the position from current PRTS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PRTS?
- A butterfly on PRTS is the butterfly strategy applied to PRTS (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 PRTS stock trading near $6.59, the strikes shown on this page are snapped to the nearest listed PRTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRTS 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 PRTS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 125.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRTS butterfly?
- The breakeven for the PRTS butterfly priced on this page is no defined breakeven on the modeled curve 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 PRTS market-implied 1-standard-deviation expected move is approximately 35.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PRTS?
- Butterflies on PRTS are pinning bets - traders use them when they expect PRTS 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 PRTS implied volatility affect this butterfly?
- PRTS ATM IV is at 125.40% with IV rank near 24.17%, 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.