SILA Butterfly Strategy
SILA (Sila Realty Trust, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.
Sila Realty Trust, Inc. is a net lease real estate investment trust headquartered in Tampa, Florida, with a strategic focus on investing in the significant, growing, and resilient healthcare sector of the U.S. economy. The Company invests in high quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio is comprised of high quality tenants in geographically diverse facilities which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of December 31, 2023, the Company owned 131 real estate properties and two undeveloped land parcels located in 62 markets across the United States.
SILA (Sila Realty Trust, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $1.69B, a trailing P/E of 44.53, a beta of 0.33 versus the broader market, a 52-week range of 21.94-30.63, average daily share volume of 712K, a public-listing history dating back to 2024, approximately 49 full-time employees. These structural characteristics shape how SILA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates SILA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 44.53 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. SILA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SILA?
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 SILA snapshot
As of May 15, 2026, spot at $30.55, ATM IV 7.70%, IV rank 5.72%, expected move 2.21%. The butterfly on SILA 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 SILA specifically: SILA IV at 7.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a SILA butterfly, with a market-implied 1-standard-deviation move of approximately 2.21% (roughly $0.67 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 SILA expiries trade a higher absolute premium for lower per-day decay. Position sizing on SILA should anchor to the underlying notional of $30.55 per share and to the trader's directional view on SILA stock.
SILA butterfly setup
The SILA 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 SILA near $30.55, the first option leg uses a $29.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SILA 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 SILA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.02 | N/A |
| Sell 2 | Call | $30.55 | N/A |
| Buy 1 | Call | $32.08 | N/A |
SILA 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.
SILA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SILA. 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 SILA
Butterflies on SILA are pinning bets - traders use them when they expect SILA 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.
SILA thesis for this butterfly
The market-implied 1-standard-deviation range for SILA extends from approximately $29.88 on the downside to $31.22 on the upside. A SILA long call butterfly is a pinning play: it pays maximum at the middle strike if SILA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SILA IV rank near 5.72% 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 SILA at 7.70%. As a Real Estate name, SILA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SILA-specific events.
SILA 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. SILA positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SILA alongside the broader basket even when SILA-specific fundamentals are unchanged. Always rebuild the position from current SILA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SILA?
- A butterfly on SILA is the butterfly strategy applied to SILA (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 SILA stock trading near $30.55, the strikes shown on this page are snapped to the nearest listed SILA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SILA 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 SILA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 7.70%), 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 SILA butterfly?
- The breakeven for the SILA 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 SILA market-implied 1-standard-deviation expected move is approximately 2.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SILA?
- Butterflies on SILA are pinning bets - traders use them when they expect SILA 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 SILA implied volatility affect this butterfly?
- SILA ATM IV is at 7.70% with IV rank near 5.72%, 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.