GNSS Butterfly Strategy
GNSS (Genasys Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Genasys Inc. designs, develops, and sells critical communications hardware and software solutions to alert, inform, and protect people principally in the Asia Pacific, North and South America, Europe, the Middle East, and Africa. The company operates through two segments, Hardware and Software. Its products include Genasys Protect Platform, a complete protective communications platform that provides protective communications tools for various hazards to provide targeted emergency communication, data-driven decision making, secure inter-agency collaboration, and others; Genasys ACOUSTICS that are clear voice messaging acoustic devices with software connectivity, solar power backup, and satellite backup to reach everyone when it matters; and Genasys Evertel, a secure compliant real-time inter- and intra-agency communication and collaboration software for law enforcement and public officials. The company sells its products directly to governments, militaries, end-users, and prime vendors. The company was formerly known as LRAD Corporation and changed its name to Genasys Inc. in October 2019. Genasys Inc. was incorporated in 1992 and is based in San Diego, California.
GNSS (Genasys Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $77.4M, a beta of 0.74 versus the broader market, a 52-week range of 1.4-2.7, average daily share volume of 115K, a public-listing history dating back to 1994, approximately 187 full-time employees. These structural characteristics shape how GNSS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places GNSS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GNSS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on GNSS?
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.
GNSS snapshot
As of August 14, 2026, spot at $1.75, ATM IV 341.00%, IV rank 74.19%, expected move 97.76%. The butterfly on GNSS 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 GNSS specifically: GNSS IV at 341.00% is rich versus its 1-year range, which makes a premium-buying GNSS butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 97.76% (roughly $1.71 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 GNSS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GNSS should anchor to the underlying notional of $1.75 per share and to the trader's directional view on GNSS stock.
GNSS butterfly setup
The GNSS 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 GNSS at $1.75 on that close, the first option leg uses a $1.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GNSS 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 GNSS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.66 | N/A |
| Sell 2 | Call | $1.75 | N/A |
| Buy 1 | Call | $1.84 | N/A |
GNSS 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.
GNSS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GNSS. 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 GNSS
Butterflies on GNSS are pinning bets - traders use them when they expect GNSS 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.
GNSS thesis for this butterfly
The market-implied 1-standard-deviation range for GNSS extends from approximately $0.04 on the downside to $3.46 on the upside. A GNSS long call butterfly is a pinning play: it pays maximum at the middle strike if GNSS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GNSS IV rank near 74.19% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on GNSS at 341.00%. As a Technology name, GNSS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GNSS-specific events.
GNSS 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. GNSS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GNSS alongside the broader basket even when GNSS-specific fundamentals are unchanged. Always rebuild the position from current GNSS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GNSS?
- A butterfly on GNSS is the butterfly strategy applied to GNSS (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 GNSS stock at $1.75 on the most recent close, the strikes shown on this page are snapped to the nearest listed GNSS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GNSS 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 GNSS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 341.00%), 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 GNSS butterfly?
- The breakeven for the GNSS 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 GNSS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 97.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GNSS?
- Butterflies on GNSS are pinning bets - traders use them when they expect GNSS 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 GNSS implied volatility affect this butterfly?
- GNSS ATM IV is at 341.00% with IV rank near 74.19%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.