III Butterfly Strategy
III (Information Services Group, Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NASDAQ.
Information Services Group, Inc. is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, ISG helps organizations achieve operational excellence and faster growth through digital transformation services, including sourcing advisory, cloud and data analytics, managed governance and risk services, network carrier services, and market intelligence.
III (Information Services Group, Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $246.4M, a trailing P/E of 21.18, a beta of 1.09 versus the broader market, a 52-week range of 3.74-6.45, average daily share volume of 239K, a public-listing history dating back to 2007, approximately 1K full-time employees. These structural characteristics shape how III stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places III roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. III pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on III?
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.
III snapshot
As of August 14, 2026, spot at $5.16, ATM IV 19.80%, IV rank 3.84%, expected move 5.68%. The butterfly on III 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 III specifically: III IV at 19.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a III butterfly, with a market-implied 1-standard-deviation move of approximately 5.68% (roughly $0.29 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 III expiries trade a higher absolute premium for lower per-day decay. Position sizing on III should anchor to the underlying notional of $5.16 per share and to the trader's directional view on III stock.
III butterfly setup
The III 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 III at $5.16 on that close, the first option leg uses a $4.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed III 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 III shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.90 | N/A |
| Sell 2 | Call | $5.16 | N/A |
| Buy 1 | Call | $5.42 | N/A |
III 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.
III butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on III. 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 III
Butterflies on III are pinning bets - traders use them when they expect III 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.
III thesis for this butterfly
The market-implied 1-standard-deviation range for III extends from approximately $4.87 on the downside to $5.45 on the upside. A III long call butterfly is a pinning play: it pays maximum at the middle strike if III settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current III IV rank near 3.84% 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 III at 19.80%. As a Industrials name, III options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to III-specific events.
III 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. III positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move III alongside the broader basket even when III-specific fundamentals are unchanged. Always rebuild the position from current III chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on III?
- A butterfly on III is the butterfly strategy applied to III (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 III stock at $5.16 on the most recent close, the strikes shown on this page are snapped to the nearest listed III chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are III 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 III butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.80%), 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 III butterfly?
- The breakeven for the III 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 III market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on III?
- Butterflies on III are pinning bets - traders use them when they expect III 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 III implied volatility affect this butterfly?
- III ATM IV is at 19.80% with IV rank near 3.84%, 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.