UONEK Butterfly Strategy
UONEK (Urban One, Inc.), in the Communication Services sector, (Broadcasting industry), listed on NASDAQ.
Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of December 31, 2021, it owned and/or operated 64 broadcast stations, including 54 FM or AM stations, 8 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up!
UONEK (Urban One, Inc.) trades in the Communication Services sector, specifically Broadcasting, with a market capitalization of approximately $31.6M, a beta of 0.29 versus the broader market, a 52-week range of 4.5-14, average daily share volume of 8K, a public-listing history dating back to 2000, approximately 962 full-time employees. These structural characteristics shape how UONEK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.29 indicates UONEK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on UONEK?
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 UONEK snapshot
As of May 15, 2026, spot at $5.24, ATM IV 287.80%, IV rank 57.99%, expected move 82.51%. The butterfly on UONEK 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 63-day expiry.
Why this butterfly structure on UONEK specifically: UONEK IV at 287.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 82.51% (roughly $4.32 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UONEK expiries trade a higher absolute premium for lower per-day decay. Position sizing on UONEK should anchor to the underlying notional of $5.24 per share and to the trader's directional view on UONEK stock.
UONEK butterfly setup
The UONEK 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 UONEK near $5.24, the first option leg uses a $4.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UONEK chain at a 63-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 UONEK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.98 | N/A |
| Sell 2 | Call | $5.24 | N/A |
| Buy 1 | Call | $5.50 | N/A |
UONEK 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.
UONEK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UONEK. 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 UONEK
Butterflies on UONEK are pinning bets - traders use them when they expect UONEK 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.
UONEK thesis for this butterfly
The market-implied 1-standard-deviation range for UONEK extends from approximately $0.92 on the downside to $9.56 on the upside. A UONEK long call butterfly is a pinning play: it pays maximum at the middle strike if UONEK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UONEK IV rank near 57.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on UONEK should anchor more to the directional view and the expected-move geometry. As a Communication Services name, UONEK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UONEK-specific events.
UONEK 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. UONEK positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UONEK alongside the broader basket even when UONEK-specific fundamentals are unchanged. Always rebuild the position from current UONEK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UONEK?
- A butterfly on UONEK is the butterfly strategy applied to UONEK (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 UONEK stock trading near $5.24, the strikes shown on this page are snapped to the nearest listed UONEK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UONEK 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 UONEK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 287.80%), 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 UONEK butterfly?
- The breakeven for the UONEK 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 UONEK market-implied 1-standard-deviation expected move is approximately 82.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UONEK?
- Butterflies on UONEK are pinning bets - traders use them when they expect UONEK 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 UONEK implied volatility affect this butterfly?
- UONEK ATM IV is at 287.80% with IV rank near 57.99%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.