GEOS Butterfly Strategy
GEOS (Geospace Technologies Corporation), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
Geospace Technologies Corporation designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company operates through three segments: Oil and Gas Markets, Adjacent Markets, and Emerging Markets. The Oil and Gas Markets segment offers wireless seismic data acquisition systems and reservoir characterization products and services, as well as traditional seismic exploration products, such as geophones, hydrophones, leader wires, connectors, cables, marine streamer retrieval and steering devices, and other seismic products. The Adjacent Markets segment provides industrial products, including imaging equipment, water meter products, remote shut-off valves and Internet of Things platform, and offshore cables, as well as seismic sensors for vibration monitoring and geotechnical applications, such as mine safety and earthquake detection applications; and electronic pre-press products that employ direct thermal imaging, direct-to-screen printing systems, and digital inkjet printing technologies targeted at the commercial and industrial graphics, textile, and flexographic printing industries. The Emerging Markets segment designs and sells products used for border and perimeter security surveillance, cross-border tunneling detection, and other products targeted at movement monitoring, intrusion detection, and situational awareness. This segment serves customers that include various agencies of the United States government, including the Department of Defense, Department of Energy, Department of Homeland Security, and other agencies.
GEOS (Geospace Technologies Corporation) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $103.1M, a beta of 0.20 versus the broader market, a 52-week range of 5.51-29.89, average daily share volume of 220K, a public-listing history dating back to 1997, approximately 450 full-time employees. These structural characteristics shape how GEOS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.20 indicates GEOS 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 GEOS?
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 GEOS snapshot
As of May 15, 2026, spot at $7.56, ATM IV 93.00%, IV rank 40.96%, expected move 26.66%. The butterfly on GEOS 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 34-day expiry.
Why this butterfly structure on GEOS specifically: GEOS IV at 93.00% 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 26.66% (roughly $2.02 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GEOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GEOS should anchor to the underlying notional of $7.56 per share and to the trader's directional view on GEOS stock.
GEOS butterfly setup
The GEOS 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 GEOS near $7.56, the first option leg uses a $7.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GEOS chain at a 34-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 GEOS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.18 | N/A |
| Sell 2 | Call | $7.56 | N/A |
| Buy 1 | Call | $7.94 | N/A |
GEOS 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.
GEOS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GEOS. 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 GEOS
Butterflies on GEOS are pinning bets - traders use them when they expect GEOS 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.
GEOS thesis for this butterfly
The market-implied 1-standard-deviation range for GEOS extends from approximately $5.54 on the downside to $9.58 on the upside. A GEOS long call butterfly is a pinning play: it pays maximum at the middle strike if GEOS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GEOS IV rank near 40.96% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GEOS should anchor more to the directional view and the expected-move geometry. As a Energy name, GEOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GEOS-specific events.
GEOS 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. GEOS positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GEOS alongside the broader basket even when GEOS-specific fundamentals are unchanged. Always rebuild the position from current GEOS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GEOS?
- A butterfly on GEOS is the butterfly strategy applied to GEOS (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 GEOS stock trading near $7.56, the strikes shown on this page are snapped to the nearest listed GEOS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GEOS 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 GEOS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 93.00%), 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 GEOS butterfly?
- The breakeven for the GEOS 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 GEOS market-implied 1-standard-deviation expected move is approximately 26.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GEOS?
- Butterflies on GEOS are pinning bets - traders use them when they expect GEOS 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 GEOS implied volatility affect this butterfly?
- GEOS ATM IV is at 93.00% with IV rank near 40.96%, 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.