NEOV Butterfly Strategy
NEOV (NeoVolta Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It offers NV14 and NV 24 energy storage systems to store and use energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was founded in 2018 and is headquartered in Poway, California.
NEOV (NeoVolta Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $102.5M, a beta of -0.39 versus the broader market, a 52-week range of 2.38-7.13, average daily share volume of 523K, a public-listing history dating back to 2020, approximately 10 full-time employees. These structural characteristics shape how NEOV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.39 indicates NEOV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on NEOV?
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 NEOV snapshot
As of May 15, 2026, spot at $2.55, ATM IV 442.50%, expected move 126.86%. The butterfly on NEOV 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 NEOV specifically: IV rank is unavailable in the current snapshot, so regime-based timing for NEOV is inferred from ATM IV at 442.50% alone, with a market-implied 1-standard-deviation move of approximately 126.86% (roughly $3.23 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 NEOV expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEOV should anchor to the underlying notional of $2.55 per share and to the trader's directional view on NEOV stock.
NEOV butterfly setup
The NEOV 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 NEOV near $2.55, the first option leg uses a $2.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEOV 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 NEOV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.42 | N/A |
| Sell 2 | Call | $2.55 | N/A |
| Buy 1 | Call | $2.68 | N/A |
NEOV 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.
NEOV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NEOV. 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 NEOV
Butterflies on NEOV are pinning bets - traders use them when they expect NEOV 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.
NEOV thesis for this butterfly
The market-implied 1-standard-deviation range for NEOV extends from approximately $-0.68 on the downside to $5.78 on the upside. A NEOV long call butterfly is a pinning play: it pays maximum at the middle strike if NEOV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Industrials name, NEOV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEOV-specific events.
NEOV 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. NEOV positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEOV alongside the broader basket even when NEOV-specific fundamentals are unchanged. Always rebuild the position from current NEOV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NEOV?
- A butterfly on NEOV is the butterfly strategy applied to NEOV (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 NEOV stock trading near $2.55, the strikes shown on this page are snapped to the nearest listed NEOV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEOV 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 NEOV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 442.50%), 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 NEOV butterfly?
- The breakeven for the NEOV 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 NEOV market-implied 1-standard-deviation expected move is approximately 126.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NEOV?
- Butterflies on NEOV are pinning bets - traders use them when they expect NEOV 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 NEOV implied volatility affect this butterfly?
- Current NEOV ATM IV is 442.50%; IV rank context is unavailable in the current snapshot.