GPRK Butterfly Strategy
GPRK (GeoPark Limited), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. As of December 31, 2021, the company had working and/or economic interests in 42 hydrocarbons blocks. It had net proved reserves of 87.8 million barrels of oil equivalent. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Bogotá, Colombia.
GPRK (GeoPark Limited) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $507.9M, a trailing P/E of 9.47, a beta of 0.33 versus the broader market, a 52-week range of 5.75-10.34, average daily share volume of 1.0M, a public-listing history dating back to 2010, approximately 476 full-time employees. These structural characteristics shape how GPRK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates GPRK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.47 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. GPRK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on GPRK?
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 GPRK snapshot
As of May 15, 2026, spot at $9.61, ATM IV 55.10%, IV rank 17.88%, expected move 15.80%. The butterfly on GPRK 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 GPRK specifically: GPRK IV at 55.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a GPRK butterfly, with a market-implied 1-standard-deviation move of approximately 15.80% (roughly $1.52 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 GPRK expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPRK should anchor to the underlying notional of $9.61 per share and to the trader's directional view on GPRK stock.
GPRK butterfly setup
The GPRK 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 GPRK near $9.61, the first option leg uses a $9.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPRK 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 GPRK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.13 | N/A |
| Sell 2 | Call | $9.61 | N/A |
| Buy 1 | Call | $10.09 | N/A |
GPRK 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.
GPRK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GPRK. 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 GPRK
Butterflies on GPRK are pinning bets - traders use them when they expect GPRK 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.
GPRK thesis for this butterfly
The market-implied 1-standard-deviation range for GPRK extends from approximately $8.09 on the downside to $11.13 on the upside. A GPRK long call butterfly is a pinning play: it pays maximum at the middle strike if GPRK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GPRK IV rank near 17.88% 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 GPRK at 55.10%. As a Energy name, GPRK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPRK-specific events.
GPRK 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. GPRK positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GPRK alongside the broader basket even when GPRK-specific fundamentals are unchanged. Always rebuild the position from current GPRK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GPRK?
- A butterfly on GPRK is the butterfly strategy applied to GPRK (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 GPRK stock trading near $9.61, the strikes shown on this page are snapped to the nearest listed GPRK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GPRK 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 GPRK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.10%), 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 GPRK butterfly?
- The breakeven for the GPRK 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 GPRK market-implied 1-standard-deviation expected move is approximately 15.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GPRK?
- Butterflies on GPRK are pinning bets - traders use them when they expect GPRK 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 GPRK implied volatility affect this butterfly?
- GPRK ATM IV is at 55.10% with IV rank near 17.88%, 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.