IDR Butterfly Strategy
IDR (Idaho Strategic Resources, Inc.), in the Basic Materials sector, (Gold industry), listed on AMEX.
Idaho Strategic Resources, Inc. engages in the exploring, developing, and extracting gold, silver, and base metal mineral resources in the Greater Coeur d'Alene Mining District of North Idaho and Western Montana. It owns 100% interest in the Golden Chest Mine that consists of 25 patented mining claims covering an area of 280 acres and 90 unpatented claims mine covering an area of 1,390 acres located in Murray, Idaho. The company was founded in 1996 and is headquartered in Coeur d'Alene, Idaho.
IDR (Idaho Strategic Resources, Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $809.4M, a trailing P/E of 44.61, a beta of 1.22 versus the broader market, a 52-week range of 12.25-54.7, average daily share volume of 273K, a public-listing history dating back to 1999, approximately 51 full-time employees. These structural characteristics shape how IDR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places IDR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 44.61 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 IDR?
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 IDR snapshot
As of May 15, 2026, spot at $38.46, ATM IV 87.60%, IV rank 41.25%, expected move 25.11%. The butterfly on IDR 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 IDR specifically: IDR IV at 87.60% 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 25.11% (roughly $9.66 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 IDR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IDR should anchor to the underlying notional of $38.46 per share and to the trader's directional view on IDR stock.
IDR butterfly setup
The IDR 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 IDR near $38.46, the first option leg uses a $36.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IDR 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 IDR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $36.54 | N/A |
| Sell 2 | Call | $38.46 | N/A |
| Buy 1 | Call | $40.38 | N/A |
IDR 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.
IDR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IDR. 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 IDR
Butterflies on IDR are pinning bets - traders use them when they expect IDR 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.
IDR thesis for this butterfly
The market-implied 1-standard-deviation range for IDR extends from approximately $28.80 on the downside to $48.12 on the upside. A IDR long call butterfly is a pinning play: it pays maximum at the middle strike if IDR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IDR IV rank near 41.25% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on IDR should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, IDR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IDR-specific events.
IDR 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. IDR positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IDR alongside the broader basket even when IDR-specific fundamentals are unchanged. Always rebuild the position from current IDR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IDR?
- A butterfly on IDR is the butterfly strategy applied to IDR (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 IDR stock trading near $38.46, the strikes shown on this page are snapped to the nearest listed IDR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IDR 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 IDR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 87.60%), 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 IDR butterfly?
- The breakeven for the IDR 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 IDR market-implied 1-standard-deviation expected move is approximately 25.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IDR?
- Butterflies on IDR are pinning bets - traders use them when they expect IDR 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 IDR implied volatility affect this butterfly?
- IDR ATM IV is at 87.60% with IV rank near 41.25%, 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.