FET Butterfly Strategy
FET (Forum Energy Technologies, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Forum Energy Technologies, Inc. is a global provider that develops, produces, and distributes essential equipment and services for the oil and natural gas, industrial, and renewable energy industries, operating in both the United States and internationally. The company organizes its operations into three main segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and provides products and related services for drilling, well construction, artificial lift, and subsea energy infrastructure markets. Its applications span oil and natural gas, renewable energy, defense, and communications. Offerings in this division include capital drilling equipment and various consumables for the drilling process; well casing and cementing tools, alongside protective gear for artificial lift systems and cables; and advanced subsea technologies such as remotely operated vehicles (ROVs), trenchers, submarine rescue vehicles, specialized components, and complementary technical services. The Completions segment supplies a range of equipment for well completion and intervention services.
FET (Forum Energy Technologies, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $936.7M, a beta of 0.56 versus the broader market, a 52-week range of 22.17-84.75, average daily share volume of 177K, a public-listing history dating back to 2012, approximately 2K full-time employees. These structural characteristics shape how FET stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates FET 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 FET?
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.
FET snapshot
As of August 14, 2026, spot at $86.13, ATM IV 44.20%, IV rank 5.55%, expected move 12.67%. The butterfly on FET 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 FET specifically: FET IV at 44.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FET butterfly, with a market-implied 1-standard-deviation move of approximately 12.67% (roughly $10.91 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 FET expiries trade a higher absolute premium for lower per-day decay. Position sizing on FET should anchor to the underlying notional of $86.13 per share and to the trader's directional view on FET stock.
FET butterfly setup
The FET 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 FET at $86.13 on that close, the first option leg uses a $81.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FET 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 FET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $81.82 | N/A |
| Sell 2 | Call | $86.13 | N/A |
| Buy 1 | Call | $90.44 | N/A |
FET 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.
FET butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FET. 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 FET
Butterflies on FET are pinning bets - traders use them when they expect FET 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.
FET thesis for this butterfly
The market-implied 1-standard-deviation range for FET extends from approximately $75.22 on the downside to $97.04 on the upside. A FET long call butterfly is a pinning play: it pays maximum at the middle strike if FET settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FET IV rank near 5.55% 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 FET at 44.20%. As a Energy name, FET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FET-specific events.
FET 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. FET positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FET alongside the broader basket even when FET-specific fundamentals are unchanged. Always rebuild the position from current FET chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FET?
- A butterfly on FET is the butterfly strategy applied to FET (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 FET stock at $86.13 on the most recent close, the strikes shown on this page are snapped to the nearest listed FET chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FET 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 FET butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.20%), 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 FET butterfly?
- The breakeven for the FET 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 FET market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FET?
- Butterflies on FET are pinning bets - traders use them when they expect FET 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 FET implied volatility affect this butterfly?
- FET ATM IV is at 44.20% with IV rank near 5.55%, 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.