GILT Butterfly Strategy
GILT (Gilat Satellite Networks Ltd.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel and internationally. It operates through Fixed Networks, Mobility Solutions, and Terrestrial Infrastructure Projects segments. The company designs and manufactures ground-based satellite communications equipment; and provides solutions and end-to-end services. Its portfolio consists of very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, low-profile antennas, and on-the-move/on-the-pause terminals and modems. The company also offers turnkey integrated solutions, including managed satellite network services, network planning and optimization, satellite capacity, remote network operation, call center support, hub and field operations, and communication networks construction and installation services. In addition, it provides connectivity services, Internet access, and telephony services to enterprise, government, and residential customers; and builds telecommunication infrastructure using fiber-optic and wireless technologies for broadband connectivity.
GILT (Gilat Satellite Networks Ltd.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $930.1M, a trailing P/E of 49.15, a beta of 1.05 versus the broader market, a 52-week range of 5.43-20.93, average daily share volume of 741K, a public-listing history dating back to 1993, approximately 1K full-time employees. These structural characteristics shape how GILT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places GILT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 49.15 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on GILT?
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 GILT snapshot
As of May 15, 2026, spot at $15.19, ATM IV 67.10%, IV rank 34.69%, expected move 19.24%. The butterfly on GILT 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 GILT specifically: GILT IV at 67.10% 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 19.24% (roughly $2.92 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 GILT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GILT should anchor to the underlying notional of $15.19 per share and to the trader's directional view on GILT stock.
GILT butterfly setup
The GILT 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 GILT near $15.19, the first option leg uses a $14.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GILT 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 GILT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.43 | N/A |
| Sell 2 | Call | $15.19 | N/A |
| Buy 1 | Call | $15.95 | N/A |
GILT 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.
GILT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GILT. 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 GILT
Butterflies on GILT are pinning bets - traders use them when they expect GILT 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.
GILT thesis for this butterfly
The market-implied 1-standard-deviation range for GILT extends from approximately $12.27 on the downside to $18.11 on the upside. A GILT long call butterfly is a pinning play: it pays maximum at the middle strike if GILT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GILT IV rank near 34.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GILT should anchor more to the directional view and the expected-move geometry. As a Technology name, GILT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GILT-specific events.
GILT 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. GILT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GILT alongside the broader basket even when GILT-specific fundamentals are unchanged. Always rebuild the position from current GILT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GILT?
- A butterfly on GILT is the butterfly strategy applied to GILT (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 GILT stock trading near $15.19, the strikes shown on this page are snapped to the nearest listed GILT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GILT 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 GILT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 67.10%), 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 GILT butterfly?
- The breakeven for the GILT 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 GILT market-implied 1-standard-deviation expected move is approximately 19.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GILT?
- Butterflies on GILT are pinning bets - traders use them when they expect GILT 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 GILT implied volatility affect this butterfly?
- GILT ATM IV is at 67.10% with IV rank near 34.69%, 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.