CLB Butterfly Strategy
CLB (Core Laboratories N.V.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Core Laboratories N.V. (CLB) is a global provider to the oil and gas sector, delivering specialized services and products for characterizing subterranean reservoirs and optimizing hydrocarbon extraction. The company's operations are distinctly segmented into Reservoir Description and Production Enhancement. The Reservoir Description division meticulously analyzes petroleum reservoir rock, fluid, and gas samples. This detailed scientific examination aims to boost the yield and enhance the recovery of oil and gas from clients' reservoirs. Offerings in this segment encompass comprehensive laboratory analysis and on-site field evaluations to determine the properties of crude oil and refined products, alongside performing proprietary and collaborative industry research studies. Conversely, the Production Enhancement segment furnishes an array of services and products vital for well completions, perforations, stimulation processes, and general production activities.
CLB (Core Laboratories N.V.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $573.9M, a trailing P/E of 23.96, a beta of 1.06 versus the broader market, a 52-week range of 9.79-20.36, average daily share volume of 718K, a public-listing history dating back to 1995, approximately 3K full-time employees. These structural characteristics shape how CLB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places CLB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CLB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CLB?
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.
CLB snapshot
As of August 14, 2026, spot at $12.60, ATM IV 466.90%, IV rank 94.10%, expected move 133.86%. The butterfly on CLB 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 CLB specifically: CLB IV at 466.90% is rich versus its 1-year range, which makes a premium-buying CLB butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 133.86% (roughly $16.87 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 CLB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLB should anchor to the underlying notional of $12.60 per share and to the trader's directional view on CLB stock.
CLB butterfly setup
The CLB 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 CLB at $12.60 on that close, the first option leg uses a $11.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLB 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 CLB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.97 | N/A |
| Sell 2 | Call | $12.60 | N/A |
| Buy 1 | Call | $13.23 | N/A |
CLB 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.
CLB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CLB. 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 CLB
Butterflies on CLB are pinning bets - traders use them when they expect CLB 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.
CLB thesis for this butterfly
The market-implied 1-standard-deviation range for CLB extends from approximately $-4.27 on the downside to $29.47 on the upside. A CLB long call butterfly is a pinning play: it pays maximum at the middle strike if CLB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CLB IV rank near 94.10% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CLB at 466.90%. As a Energy name, CLB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLB-specific events.
CLB 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. CLB positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CLB alongside the broader basket even when CLB-specific fundamentals are unchanged. Always rebuild the position from current CLB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CLB?
- A butterfly on CLB is the butterfly strategy applied to CLB (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 CLB stock at $12.60 on the most recent close, the strikes shown on this page are snapped to the nearest listed CLB chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CLB 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 CLB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 466.90%), 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 CLB butterfly?
- The breakeven for the CLB 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 CLB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 133.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CLB?
- Butterflies on CLB are pinning bets - traders use them when they expect CLB 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 CLB implied volatility affect this butterfly?
- CLB ATM IV is at 466.90% with IV rank near 94.10%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.