SEG Butterfly Strategy
SEG (Seaport Entertainment Group Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
Seaport Entertainment Group Inc. owns, develops, and operates a portfolio of entertainment and real estate assets primarily in New York City and Las Vegas. The company operates through three segments: Landlord Operations; Hospitality; and Sponsorships, Events, and Entertainment. The Landlord Operations segment engages in the holding of ownership interests in and operation of physical real estate assets, such as restaurant, retail, office, and entertainment properties, as well as residential units. The Hospitality segment operates six fine dining and casual dining restaurants, cocktail bars, and nightlife and entertainment venues under The Fulton, Mister Dips, Carne Mare, Malibu Farm, Gitano, and The Lawn Club brands; and the Tin Building, which offers restaurants, bars, grocery markets, retail, and private dining experiences. The Sponsorships, Events, and Entertainment segment includes the Las Vegas Aviators Triple-A Minor League Baseball team, the Las Vegas Ballpark, the Fashion Show Mall Air Rights, Seaport events, and concerts, as well as various sponsorship agreements across the Seaport and the Las Vegas Ballpark. Seaport Entertainment Group Inc. was incorporated in 2024 and is headquartered in New York, New York.
SEG (Seaport Entertainment Group Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $298.0M, a beta of 1.24 versus the broader market, a 52-week range of 17.276-28.34, average daily share volume of 61K, a public-listing history dating back to 2024, approximately 180 full-time employees. These structural characteristics shape how SEG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places SEG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SEG?
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 SEG snapshot
As of May 15, 2026, spot at $22.81, ATM IV 66.90%, IV rank 32.61%, expected move 19.18%. The butterfly on SEG 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 SEG specifically: SEG IV at 66.90% 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 19.18% (roughly $4.37 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 SEG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SEG should anchor to the underlying notional of $22.81 per share and to the trader's directional view on SEG stock.
SEG butterfly setup
The SEG 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 SEG near $22.81, the first option leg uses a $21.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SEG 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 SEG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $21.67 | N/A |
| Sell 2 | Call | $22.81 | N/A |
| Buy 1 | Call | $23.95 | N/A |
SEG 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.
SEG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SEG. 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 SEG
Butterflies on SEG are pinning bets - traders use them when they expect SEG 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.
SEG thesis for this butterfly
The market-implied 1-standard-deviation range for SEG extends from approximately $18.44 on the downside to $27.18 on the upside. A SEG long call butterfly is a pinning play: it pays maximum at the middle strike if SEG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SEG IV rank near 32.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SEG should anchor more to the directional view and the expected-move geometry. As a Real Estate name, SEG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SEG-specific events.
SEG 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. SEG positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SEG alongside the broader basket even when SEG-specific fundamentals are unchanged. Always rebuild the position from current SEG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SEG?
- A butterfly on SEG is the butterfly strategy applied to SEG (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 SEG stock trading near $22.81, the strikes shown on this page are snapped to the nearest listed SEG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SEG 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 SEG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 66.90%), 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 SEG butterfly?
- The breakeven for the SEG 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 SEG market-implied 1-standard-deviation expected move is approximately 19.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SEG?
- Butterflies on SEG are pinning bets - traders use them when they expect SEG 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 SEG implied volatility affect this butterfly?
- SEG ATM IV is at 66.90% with IV rank near 32.61%, 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.