INSG Butterfly Strategy
INSG (Inseego Corp.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Inseego Corp., a global technology firm, specializes in creating and advancing a range of wireless, Industrial IoT (IIoT), and cloud-based communication systems. These offerings cater to a diverse client base, including major corporations, service providers, small and mid-sized enterprises, public sector entities, and individual consumers across the globe. Their product portfolio encompasses advanced 4G and 5G wireless hardware, including components for private LTE/5G networks, solutions for FirstNet (the First Responders Network Authority), SD-WAN, telematics, remote surveillance, fixed wireless internet access, and mobile broadband devices. Specifically, they offer fixed wireless routers and gateways for both 4G and 5G, portable mobile hotspots, and IIoT-focused wireless gateways and routers. Additionally, Inseego provides high-speed (gigabit) 4G LTE hotspots, USB modems, integrated telematics units, and mobile asset tracking devices. These hardware solutions are complemented by proprietary application software and cloud services, empowering clients to gain valuable data insights and manage their devices remotely.
INSG (Inseego Corp.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $81.9M, a beta of 1.72 versus the broader market, a 52-week range of 4.77-21.9, average daily share volume of 318K, a public-listing history dating back to 2000, approximately 271 full-time employees. These structural characteristics shape how INSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.72 indicates INSG 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 INSG?
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.
INSG snapshot
As of August 14, 2026, spot at $4.75, ATM IV 67.50%, IV rank 18.25%, expected move 19.35%. The butterfly on INSG below is built from the August 14, 2026 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 INSG specifically: INSG IV at 67.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a INSG butterfly, with a market-implied 1-standard-deviation move of approximately 19.35% (roughly $0.92 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 INSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on INSG should anchor to the underlying notional of $4.75 per share and to the trader's directional view on INSG stock.
INSG butterfly setup
The INSG butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With INSG at $4.75 on that close, the first option leg uses a $4.51 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INSG 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 INSG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.51 | N/A |
| Sell 2 | Call | $4.75 | N/A |
| Buy 1 | Call | $4.99 | N/A |
INSG 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.
INSG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INSG. 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 INSG
Butterflies on INSG are pinning bets - traders use them when they expect INSG 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.
INSG thesis for this butterfly
The market-implied 1-standard-deviation range for INSG extends from approximately $3.83 on the downside to $5.67 on the upside. A INSG long call butterfly is a pinning play: it pays maximum at the middle strike if INSG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INSG IV rank near 18.25% 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 INSG at 67.50%. As a Technology name, INSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INSG-specific events.
INSG 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. INSG positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INSG alongside the broader basket even when INSG-specific fundamentals are unchanged. Always rebuild the position from current INSG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INSG?
- A butterfly on INSG is the butterfly strategy applied to INSG (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 INSG stock at $4.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed INSG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are INSG 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 INSG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 67.50%), 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 INSG butterfly?
- The breakeven for the INSG butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 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 INSG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INSG?
- Butterflies on INSG are pinning bets - traders use them when they expect INSG 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 INSG implied volatility affect this butterfly?
- INSG ATM IV is at 67.50% with IV rank near 18.25%, 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.