SMWB Butterfly Strategy
SMWB (Similarweb Ltd.), in the Communication Services sector, (Internet Content & Information industry), listed on NYSE.
Similarweb Ltd. specializes in providing a comprehensive digital intelligence platform with a global reach spanning the United States, Europe, Asia Pacific, the United Kingdom, and Israel, among other international markets. Their array of solutions includes: Digital Research Intelligence: Empowering senior leaders, strategy, business intelligence, and consumer insights teams to benchmark their performance against competitors, analyze prevailing market trends, conduct in-depth investigations into specific companies, and dissect audience behaviors. Digital Marketing Solutions: Designed for marketing leaders, SEO and content managers, PPC and performance marketers, affiliate marketers, and media buyers, providing insights into competitors' online customer acquisition tactics across every digital marketing channel. Shopper Intelligence Solutions: Equipping digital commerce leaders, as well as category and product managers, to map customer digital journeys, track consumer demand, enhance brand visibility in search results, and fine-tune conversion rates during the purchase process at both category and product levels. Sales Intelligence Solutions: Empowering sales management, operations teams, sales representatives, and account managers by providing access to critical buying signals and digital insights on their prospective customers, thereby accelerating lead generation. Investor Intelligence Solution: Granting portfolio managers, investment professionals, data scientists, and research analysts a comprehensive, end-to-end perspective on market, sector, or individual company performance, facilitating the identification and monitoring of investment opportunities, market forecasting, and diligent due diligence.
SMWB (Similarweb Ltd.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $490.6M, a beta of 1.26 versus the broader market, a 52-week range of 2.22-10.75, average daily share volume of 760K, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how SMWB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places SMWB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SMWB?
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 SMWB snapshot
As of June 30, 2026, spot at $6.13, ATM IV 78.50%, IV rank 13.43%, expected move 22.51%. The butterfly on SMWB 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 SMWB specifically: SMWB IV at 78.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a SMWB butterfly, with a market-implied 1-standard-deviation move of approximately 22.51% (roughly $1.38 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 SMWB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMWB should anchor to the underlying notional of $6.13 per share and to the trader's directional view on SMWB stock.
SMWB butterfly setup
The SMWB 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 SMWB near $6.13, the first option leg uses a $5.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMWB 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 SMWB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.82 | N/A |
| Sell 2 | Call | $6.13 | N/A |
| Buy 1 | Call | $6.44 | N/A |
SMWB 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.
SMWB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SMWB. 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 SMWB
Butterflies on SMWB are pinning bets - traders use them when they expect SMWB 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.
SMWB thesis for this butterfly
The market-implied 1-standard-deviation range for SMWB extends from approximately $4.75 on the downside to $7.51 on the upside. A SMWB long call butterfly is a pinning play: it pays maximum at the middle strike if SMWB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SMWB IV rank near 13.43% 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 SMWB at 78.50%. As a Communication Services name, SMWB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMWB-specific events.
SMWB 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. SMWB positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SMWB alongside the broader basket even when SMWB-specific fundamentals are unchanged. Always rebuild the position from current SMWB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SMWB?
- A butterfly on SMWB is the butterfly strategy applied to SMWB (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 SMWB stock trading near $6.13, the strikes shown on this page are snapped to the nearest listed SMWB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SMWB 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 SMWB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 78.50%), 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 SMWB butterfly?
- The breakeven for the SMWB 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 SMWB market-implied 1-standard-deviation expected move is approximately 22.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SMWB?
- Butterflies on SMWB are pinning bets - traders use them when they expect SMWB 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 SMWB implied volatility affect this butterfly?
- SMWB ATM IV is at 78.50% with IV rank near 13.43%, 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.