GROY Butterfly Strategy
GROY (Gold Royalty Corp.), in the Basic Materials sector, (Other Precious Metals industry), listed on AMEX.
Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term attractive returns for its investors. The company's portfolio consists of net smelter return royalties ranging from 0.5% to 2.0% on 17 gold properties located in the Americas. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.
GROY (Gold Royalty Corp.) trades in the Basic Materials sector, specifically Other Precious Metals, with a market capitalization of approximately $654.2M, a beta of 0.94 versus the broader market, a 52-week range of 1.45-5.455, average daily share volume of 2.5M, a public-listing history dating back to 2021, approximately 13 full-time employees. These structural characteristics shape how GROY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places GROY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on GROY?
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 GROY snapshot
As of May 15, 2026, spot at $3.33, ATM IV 1.00%, IV rank 0.00%, expected move 0.29%. The butterfly on GROY 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 GROY specifically: GROY IV at 1.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a GROY butterfly, with a market-implied 1-standard-deviation move of approximately 0.29% (roughly $0.01 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 GROY expiries trade a higher absolute premium for lower per-day decay. Position sizing on GROY should anchor to the underlying notional of $3.33 per share and to the trader's directional view on GROY stock.
GROY butterfly setup
The GROY 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 GROY near $3.33, the first option leg uses a $3.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GROY 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 GROY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.16 | N/A |
| Sell 2 | Call | $3.33 | N/A |
| Buy 1 | Call | $3.50 | N/A |
GROY 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.
GROY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GROY. 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 GROY
Butterflies on GROY are pinning bets - traders use them when they expect GROY 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.
GROY thesis for this butterfly
The market-implied 1-standard-deviation range for GROY extends from approximately $3.32 on the downside to $3.34 on the upside. A GROY long call butterfly is a pinning play: it pays maximum at the middle strike if GROY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GROY IV rank near 0.00% 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 GROY at 1.00%. As a Basic Materials name, GROY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GROY-specific events.
GROY 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. GROY positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GROY alongside the broader basket even when GROY-specific fundamentals are unchanged. Always rebuild the position from current GROY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GROY?
- A butterfly on GROY is the butterfly strategy applied to GROY (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 GROY stock trading near $3.33, the strikes shown on this page are snapped to the nearest listed GROY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GROY 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 GROY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 1.00%), 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 GROY butterfly?
- The breakeven for the GROY 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 GROY market-implied 1-standard-deviation expected move is approximately 0.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GROY?
- Butterflies on GROY are pinning bets - traders use them when they expect GROY 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 GROY implied volatility affect this butterfly?
- GROY ATM IV is at 1.00% with IV rank near 0.00%, 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.