IMSR Butterfly Strategy
IMSR (Terrestrial Energy Inc.), in the Energy sector, (Regulated Electric industry), listed on NASDAQ.
A developer of advanced nuclear power solutions, specifically small modular molten salt reactors (their “IMSR” technology)–designed to provide low-carbon, high-temperature industrial heat and electricity. It recently completed a business combination with HCM II Acquisition Corp.
IMSR (Terrestrial Energy Inc.) trades in the Energy sector, specifically Regulated Electric, with a market capitalization of approximately $585.9M, a beta of 1.86 versus the broader market, a 52-week range of 5.33-31.5, average daily share volume of 2.1M, a public-listing history dating back to 2025, approximately 143 full-time employees. These structural characteristics shape how IMSR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.86 indicates IMSR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on IMSR?
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 IMSR snapshot
As of May 15, 2026, spot at $7.29, ATM IV 110.30%, expected move 31.62%. The butterfly on IMSR 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 IMSR specifically: IV rank is unavailable in the current snapshot, so regime-based timing for IMSR is inferred from ATM IV at 110.30% alone, with a market-implied 1-standard-deviation move of approximately 31.62% (roughly $2.31 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 IMSR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IMSR should anchor to the underlying notional of $7.29 per share and to the trader's directional view on IMSR stock.
IMSR butterfly setup
The IMSR 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 IMSR near $7.29, the first option leg uses a $6.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IMSR 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 IMSR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.93 | N/A |
| Sell 2 | Call | $7.29 | N/A |
| Buy 1 | Call | $7.65 | N/A |
IMSR 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.
IMSR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IMSR. 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 IMSR
Butterflies on IMSR are pinning bets - traders use them when they expect IMSR 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.
IMSR thesis for this butterfly
The market-implied 1-standard-deviation range for IMSR extends from approximately $4.98 on the downside to $9.60 on the upside. A IMSR long call butterfly is a pinning play: it pays maximum at the middle strike if IMSR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Energy name, IMSR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IMSR-specific events.
IMSR 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. IMSR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IMSR alongside the broader basket even when IMSR-specific fundamentals are unchanged. Always rebuild the position from current IMSR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IMSR?
- A butterfly on IMSR is the butterfly strategy applied to IMSR (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 IMSR stock trading near $7.29, the strikes shown on this page are snapped to the nearest listed IMSR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IMSR 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 IMSR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 110.30%), 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 IMSR butterfly?
- The breakeven for the IMSR 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 IMSR market-implied 1-standard-deviation expected move is approximately 31.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IMSR?
- Butterflies on IMSR are pinning bets - traders use them when they expect IMSR 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 IMSR implied volatility affect this butterfly?
- Current IMSR ATM IV is 110.30%; IV rank context is unavailable in the current snapshot.