UNTY Butterfly Strategy
UNTY (Unity Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
As the parent entity of Unity Bank, Unity Bancorp, Inc. delivers a comprehensive range of commercial and retail banking solutions, catering to individual consumers, small and mid-sized enterprises, and professional organizations. Its product portfolio encompasses various deposit accounts, such as personal and business checking, certificates of deposit (time deposits), money market accounts, and traditional savings accounts, alongside both interest-earning and non-interest-bearing demand deposit options. Furthermore, the bank extends a variety of lending products, including Small Business Administration (SBA) loans, commercial financing, and consumer credit facilities, which feature residential mortgages, home equity lines of credit and loans, residential construction financing, and personal loans. Customers can access these services both online and through its network of nineteen physical branches, strategically situated across Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren counties in New Jersey, and Northampton County in Pennsylvania. Established in 1991, Unity Bancorp, Inc. maintains its corporate headquarters in Clinton, New Jersey.
UNTY (Unity Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $597.8M, a trailing P/E of 9.83, a beta of 0.64 versus the broader market, a 52-week range of 44.34-60.8618, average daily share volume of 53K, a public-listing history dating back to 1997, approximately 227 full-time employees. These structural characteristics shape how UNTY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates UNTY 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 9.83 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. UNTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on UNTY?
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 UNTY snapshot
As of June 30, 2026, spot at $58.36, ATM IV 95.80%, IV rank 26.07%, expected move 27.46%. The butterfly on UNTY 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 UNTY specifically: UNTY IV at 95.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a UNTY butterfly, with a market-implied 1-standard-deviation move of approximately 27.46% (roughly $16.03 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 UNTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNTY should anchor to the underlying notional of $58.36 per share and to the trader's directional view on UNTY stock.
UNTY butterfly setup
The UNTY 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 UNTY near $58.36, the first option leg uses a $55.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNTY 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 UNTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $55.44 | N/A |
| Sell 2 | Call | $58.36 | N/A |
| Buy 1 | Call | $61.28 | N/A |
UNTY 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.
UNTY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UNTY. 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 UNTY
Butterflies on UNTY are pinning bets - traders use them when they expect UNTY 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.
UNTY thesis for this butterfly
The market-implied 1-standard-deviation range for UNTY extends from approximately $42.33 on the downside to $74.39 on the upside. A UNTY long call butterfly is a pinning play: it pays maximum at the middle strike if UNTY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UNTY IV rank near 26.07% 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 UNTY at 95.80%. As a Financial Services name, UNTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNTY-specific events.
UNTY 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. UNTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UNTY alongside the broader basket even when UNTY-specific fundamentals are unchanged. Always rebuild the position from current UNTY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UNTY?
- A butterfly on UNTY is the butterfly strategy applied to UNTY (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 UNTY stock trading near $58.36, the strikes shown on this page are snapped to the nearest listed UNTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UNTY 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 UNTY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 95.80%), 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 UNTY butterfly?
- The breakeven for the UNTY 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 UNTY market-implied 1-standard-deviation expected move is approximately 27.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UNTY?
- Butterflies on UNTY are pinning bets - traders use them when they expect UNTY 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 UNTY implied volatility affect this butterfly?
- UNTY ATM IV is at 95.80% with IV rank near 26.07%, 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.