KEEL Butterfly Strategy
KEEL (Keel Infrastructure Corp.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.
Keel Infrastructure Corp. operates as a digital infrastructure and energy company that develops and owns data centers and energy infrastructure for computing workloads, including AI in North America. The company was founded in 2017 and is headquartered in New York, New York.
KEEL (Keel Infrastructure Corp.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $2.51B, a beta of 3.90 versus the broader market, a 52-week range of 2-4.5, average daily share volume of 45.9M, a public-listing history dating back to 2019, approximately 170 full-time employees. These structural characteristics shape how KEEL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.90 indicates KEEL 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 KEEL?
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 KEEL snapshot
As of May 13, 2026, spot at $4.13, ATM IV 122.70%, expected move 35.18%. The butterfly on KEEL 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 36-day expiry.
Why this butterfly structure on KEEL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for KEEL is inferred from ATM IV at 122.70% alone, with a market-implied 1-standard-deviation move of approximately 35.18% (roughly $1.45 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KEEL expiries trade a higher absolute premium for lower per-day decay. Position sizing on KEEL should anchor to the underlying notional of $4.13 per share and to the trader's directional view on KEEL stock.
KEEL butterfly setup
The KEEL 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 KEEL near $4.13, the first option leg uses a $3.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KEEL chain at a 36-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 KEEL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.92 | N/A |
| Sell 2 | Call | $4.13 | N/A |
| Buy 1 | Call | $4.34 | N/A |
KEEL 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.
KEEL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KEEL. 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 KEEL
Butterflies on KEEL are pinning bets - traders use them when they expect KEEL 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.
KEEL thesis for this butterfly
The market-implied 1-standard-deviation range for KEEL extends from approximately $2.68 on the downside to $5.58 on the upside. A KEEL long call butterfly is a pinning play: it pays maximum at the middle strike if KEEL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Technology name, KEEL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KEEL-specific events.
KEEL 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. KEEL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KEEL alongside the broader basket even when KEEL-specific fundamentals are unchanged. Always rebuild the position from current KEEL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KEEL?
- A butterfly on KEEL is the butterfly strategy applied to KEEL (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 KEEL stock trading near $4.13, the strikes shown on this page are snapped to the nearest listed KEEL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KEEL 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 KEEL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 122.70%), 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 KEEL butterfly?
- The breakeven for the KEEL 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 KEEL market-implied 1-standard-deviation expected move is approximately 35.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KEEL?
- Butterflies on KEEL are pinning bets - traders use them when they expect KEEL 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 KEEL implied volatility affect this butterfly?
- Current KEEL ATM IV is 122.70%; IV rank context is unavailable in the current snapshot.