UE Butterfly Strategy
UE (Urban Edge Properties), in the Real Estate sector, (REIT - Retail industry), listed on NYSE.
Urban Edge Properties functions as a Real Estate Investment Trust (REIT) whose shares are publicly traded on the New York Stock Exchange. The firm is dedicated to the procurement, stewardship, enhancement, and modernization of retail properties situated in urban environments, with a significant emphasis on the dynamic New York metropolitan region. Its extensive portfolio comprises 78 distinct retail assets, collectively spanning a substantial 15.1 million square feet of total leasable space.
UE (Urban Edge Properties) trades in the Real Estate sector, specifically REIT - Retail, with a market capitalization of approximately $2.75B, a trailing P/E of 40.48, a beta of 1.00 versus the broader market, a 52-week range of 18.46-24.11, average daily share volume of 900K, a public-listing history dating back to 2015, approximately 104 full-time employees. These structural characteristics shape how UE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places UE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 40.48 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. UE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on UE?
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.
UE snapshot
As of August 14, 2026, spot at $21.92, ATM IV 60.70%, IV rank 10.05%, expected move 17.40%. The butterfly on UE below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on UE specifically: UE IV at 60.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a UE butterfly, with a market-implied 1-standard-deviation move of approximately 17.40% (roughly $3.81 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UE expiries trade a higher absolute premium for lower per-day decay. Position sizing on UE should anchor to the underlying notional of $21.92 per share and to the trader's directional view on UE stock.
UE butterfly setup
The UE 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 UE at $21.92 on that close, the first option leg uses a $20.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UE chain at a 35-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 UE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.82 | N/A |
| Sell 2 | Call | $21.92 | N/A |
| Buy 1 | Call | $23.02 | N/A |
UE 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.
UE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UE. 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 UE
Butterflies on UE are pinning bets - traders use them when they expect UE 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.
UE thesis for this butterfly
The market-implied 1-standard-deviation range for UE extends from approximately $18.11 on the downside to $25.73 on the upside. A UE long call butterfly is a pinning play: it pays maximum at the middle strike if UE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UE IV rank near 10.05% 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 UE at 60.70%. As a Real Estate name, UE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UE-specific events.
UE 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. UE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UE alongside the broader basket even when UE-specific fundamentals are unchanged. Always rebuild the position from current UE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UE?
- A butterfly on UE is the butterfly strategy applied to UE (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 UE stock at $21.92 on the most recent close, the strikes shown on this page are snapped to the nearest listed UE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UE 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 UE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.70%), 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 UE butterfly?
- The breakeven for the UE butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UE?
- Butterflies on UE are pinning bets - traders use them when they expect UE 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 UE implied volatility affect this butterfly?
- UE ATM IV is at 60.70% with IV rank near 10.05%, 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.