How are CVEO 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 CVEO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.70%), the computed maximum profit is $139.48 per contract and the computed maximum loss is -$56.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CVEO butterfly?

The breakeven for the CVEO butterfly priced on this page is roughly $33.57 and $36.44 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 CVEO market-implied 1-standard-deviation expected move is approximately 15.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CVEO implied volatility affect this butterfly?

CVEO ATM IV is at 54.70% with IV rank near 13.48%, 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.

CVEO Butterfly Strategy

CVEO (Civeo Corporation), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.

Civeo Corporation specializes in providing comprehensive hospitality and lodging solutions for the natural resource sector across Canada, Australia, and the United States. The company constructs and operates both permanent and temporary workforce accommodations, including large-scale lodges and villages, as well as versatile mobile units like modular and skid-mounted camps. Beyond housing, Civeo delivers a broad spectrum of integrated support services, such as catering, housekeeping, property maintenance, laundry, utility provision (including water/wastewater treatment and power generation), communication systems, security, and logistics. They also offer full development capabilities for these facilities, encompassing site selection, regulatory permitting, engineering design, manufacturing coordination, and on-site construction. With ownership and operation of 27 lodges and villages featuring approximately 28,000 rooms, alongside a fleet of mobile accommodation assets, Civeo serves major clients in the oil, mining, engineering, and associated service industries. The company's headquarters are located in Houston, Texas.

CVEO (Civeo Corporation) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $370.1M, a beta of 0.73 versus the broader market, a 52-week range of 19.75-36.5, average daily share volume of 101K, a public-listing history dating back to 2014, approximately 3K full-time employees. These structural characteristics shape how CVEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.73 places CVEO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CVEO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CVEO?

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 CVEO snapshot

As of June 30, 2026, spot at $34.86, ATM IV 54.70%, IV rank 13.48%, expected move 15.68%. The butterfly on CVEO 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 CVEO specifically: CVEO IV at 54.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CVEO butterfly, with a market-implied 1-standard-deviation move of approximately 15.68% (roughly $5.47 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 CVEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVEO should anchor to the underlying notional of $34.86 per share and to the trader's directional view on CVEO stock.

CVEO butterfly setup

The CVEO 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 CVEO near $34.86, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVEO 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 CVEO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$33.00	$2.63
Sell 2	Call	$35.00	$1.31
Buy 1	Call	$37.00	$0.56

CVEO butterfly risk and reward

Net Premium / Debit: -$56.50
Max Profit (per contract): $139.48
Max Loss (per contract): -$56.50
Breakeven(s): $33.57, $36.44
Risk / Reward Ratio: 2.469

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.

CVEO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CVEO. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$56.50
$7.72	-77.9%	-$56.50
$15.42	-55.8%	-$56.50
$23.13	-33.6%	-$56.50
$30.84	-11.5%	-$56.50
$38.54	+10.6%	-$56.50
$46.25	+32.7%	-$56.50
$53.96	+54.8%	-$56.50
$61.66	+76.9%	-$56.50
$69.37	+99.0%	-$56.50

When traders use butterfly on CVEO

Butterflies on CVEO are pinning bets - traders use them when they expect CVEO 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.

CVEO thesis for this butterfly

The market-implied 1-standard-deviation range for CVEO extends from approximately $29.39 on the downside to $40.33 on the upside. A CVEO long call butterfly is a pinning play: it pays maximum at the middle strike if CVEO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CVEO IV rank near 13.48% 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 CVEO at 54.70%. As a Industrials name, CVEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVEO-specific events.

CVEO 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. CVEO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVEO alongside the broader basket even when CVEO-specific fundamentals are unchanged. Always rebuild the position from current CVEO chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on CVEO?: A butterfly on CVEO is the butterfly strategy applied to CVEO (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 CVEO stock trading near $34.86, the strikes shown on this page are snapped to the nearest listed CVEO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CVEO 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 CVEO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.70%), the computed maximum profit is $139.48 per contract and the computed maximum loss is -$56.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CVEO butterfly?: The breakeven for the CVEO butterfly priced on this page is roughly $33.57 and $36.44 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 CVEO market-implied 1-standard-deviation expected move is approximately 15.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CVEO?: Butterflies on CVEO are pinning bets - traders use them when they expect CVEO 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 CVEO implied volatility affect this butterfly?: CVEO ATM IV is at 54.70% with IV rank near 13.48%, 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.