GCTS Butterfly Strategy
GCTS (GCT Semiconductor Holding, Inc.), in the Technology sector, (Semiconductors industry), listed on NYSE.
GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, customer premises equipment, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc.
GCTS (GCT Semiconductor Holding, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $134.4M, a beta of 1.76 versus the broader market, a 52-week range of 0.955-3.93, average daily share volume of 6.0M, a public-listing history dating back to 2021, approximately 126 full-time employees. These structural characteristics shape how GCTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.76 indicates GCTS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on GCTS?
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 GCTS snapshot
As of June 29, 2026, spot at $2.58, ATM IV 22.20%, expected move 6.36%. The butterfly on GCTS 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 18-day expiry.
Why this butterfly structure on GCTS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for GCTS is inferred from ATM IV at 22.20% alone, with a market-implied 1-standard-deviation move of approximately 6.36% (roughly $0.16 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GCTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GCTS should anchor to the underlying notional of $2.58 per share and to the trader's directional view on GCTS stock.
GCTS butterfly setup
The GCTS 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 GCTS near $2.58, the first option leg uses a $2.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GCTS chain at a 18-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 GCTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.45 | N/A |
| Sell 2 | Call | $2.58 | N/A |
| Buy 1 | Call | $2.71 | N/A |
GCTS 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.
GCTS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GCTS. 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 GCTS
Butterflies on GCTS are pinning bets - traders use them when they expect GCTS 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.
GCTS thesis for this butterfly
The market-implied 1-standard-deviation range for GCTS extends from approximately $2.42 on the downside to $2.74 on the upside. A GCTS long call butterfly is a pinning play: it pays maximum at the middle strike if GCTS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Technology name, GCTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GCTS-specific events.
GCTS 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. GCTS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GCTS alongside the broader basket even when GCTS-specific fundamentals are unchanged. Always rebuild the position from current GCTS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GCTS?
- A butterfly on GCTS is the butterfly strategy applied to GCTS (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 GCTS stock trading near $2.58, the strikes shown on this page are snapped to the nearest listed GCTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GCTS 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 GCTS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.20%), 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 GCTS butterfly?
- The breakeven for the GCTS 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 GCTS market-implied 1-standard-deviation expected move is approximately 6.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GCTS?
- Butterflies on GCTS are pinning bets - traders use them when they expect GCTS 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 GCTS implied volatility affect this butterfly?
- Current GCTS ATM IV is 22.20%; IV rank context is unavailable in the current snapshot.