STKS Butterfly Strategy
STKS (The ONE Group Hospitality, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
The ONE Group Hospitality, Inc., a hospitality company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. As of December 31, 2021, it owned, operated, managed, or licensed 60 venues, including 23 STKs and 24 Kona Grills in North America, Europe, and the Middle East, as well as 13 F&B venues in seven hotels and casinos in the United States and Europe.
STKS (The ONE Group Hospitality, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $59.7M, a beta of 1.29 versus the broader market, a 52-week range of 1.65-5.26, average daily share volume of 41K, a public-listing history dating back to 2014, approximately 11K full-time employees. These structural characteristics shape how STKS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places STKS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on STKS?
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 STKS snapshot
As of May 15, 2026, spot at $1.90, ATM IV 125.90%, IV rank 23.49%, expected move 36.09%. The butterfly on STKS 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 STKS specifically: STKS IV at 125.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a STKS butterfly, with a market-implied 1-standard-deviation move of approximately 36.09% (roughly $0.69 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 STKS expiries trade a higher absolute premium for lower per-day decay. Position sizing on STKS should anchor to the underlying notional of $1.90 per share and to the trader's directional view on STKS stock.
STKS butterfly setup
The STKS 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 STKS near $1.90, the first option leg uses a $1.81 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STKS 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 STKS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.81 | N/A |
| Sell 2 | Call | $1.90 | N/A |
| Buy 1 | Call | $1.99 | N/A |
STKS 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.
STKS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on STKS. 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 STKS
Butterflies on STKS are pinning bets - traders use them when they expect STKS 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.
STKS thesis for this butterfly
The market-implied 1-standard-deviation range for STKS extends from approximately $1.21 on the downside to $2.59 on the upside. A STKS long call butterfly is a pinning play: it pays maximum at the middle strike if STKS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current STKS IV rank near 23.49% 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 STKS at 125.90%. As a Consumer Cyclical name, STKS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STKS-specific events.
STKS 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. STKS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STKS alongside the broader basket even when STKS-specific fundamentals are unchanged. Always rebuild the position from current STKS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on STKS?
- A butterfly on STKS is the butterfly strategy applied to STKS (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 STKS stock trading near $1.90, the strikes shown on this page are snapped to the nearest listed STKS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STKS 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 STKS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 125.90%), 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 STKS butterfly?
- The breakeven for the STKS 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 STKS market-implied 1-standard-deviation expected move is approximately 36.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on STKS?
- Butterflies on STKS are pinning bets - traders use them when they expect STKS 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 STKS implied volatility affect this butterfly?
- STKS ATM IV is at 125.90% with IV rank near 23.49%, 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.