NESR Butterfly Strategy
NESR (National Energy Services Reunited Corp.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
National Energy Services Reunited Corp. provides oilfield services to oil and gas companies in the Middle East, North Africa, and the Asia Pacific regions. It operates through two segments, Production Services; and Drilling and Evaluation Services. The Production Services segment offers hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and pipeline services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems. It also provides production assurance chemicals; laboratory services; artificial lift services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources, treats, and disposes water for oil and gas, municipal, and industrial use. The Drilling and Evaluation Services segment offers drilling and workover rigs; rig services; fishing and remedial solutions; directional and turbines drilling services; drilling fluid systems and related technologies; wireline logging services; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from a well, as well as rents drilling tools. It also provides oilfield solutions for thru-tubing intervention; tubular running services; and a range of wellhead products, flow control equipment, and frac equipment.
NESR (National Energy Services Reunited Corp.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $2.69B, a trailing P/E of 41.67, a beta of 0.38 versus the broader market, a 52-week range of 5.47-27.25, average daily share volume of 2.2M, a public-listing history dating back to 2017, approximately 7K full-time employees. These structural characteristics shape how NESR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates NESR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 41.67 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on NESR?
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 NESR snapshot
As of May 15, 2026, spot at $25.43, ATM IV 45.50%, IV rank 5.23%, expected move 13.04%. The butterfly on NESR 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 NESR specifically: NESR IV at 45.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a NESR butterfly, with a market-implied 1-standard-deviation move of approximately 13.04% (roughly $3.32 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 NESR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NESR should anchor to the underlying notional of $25.43 per share and to the trader's directional view on NESR stock.
NESR butterfly setup
The NESR 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 NESR near $25.43, the first option leg uses a $24.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NESR 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 NESR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.16 | N/A |
| Sell 2 | Call | $25.43 | N/A |
| Buy 1 | Call | $26.70 | N/A |
NESR 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.
NESR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NESR. 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 NESR
Butterflies on NESR are pinning bets - traders use them when they expect NESR 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.
NESR thesis for this butterfly
The market-implied 1-standard-deviation range for NESR extends from approximately $22.11 on the downside to $28.75 on the upside. A NESR long call butterfly is a pinning play: it pays maximum at the middle strike if NESR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NESR IV rank near 5.23% 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 NESR at 45.50%. As a Energy name, NESR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NESR-specific events.
NESR 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. NESR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NESR alongside the broader basket even when NESR-specific fundamentals are unchanged. Always rebuild the position from current NESR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NESR?
- A butterfly on NESR is the butterfly strategy applied to NESR (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 NESR stock trading near $25.43, the strikes shown on this page are snapped to the nearest listed NESR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NESR 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 NESR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 45.50%), 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 NESR butterfly?
- The breakeven for the NESR 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 NESR market-implied 1-standard-deviation expected move is approximately 13.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NESR?
- Butterflies on NESR are pinning bets - traders use them when they expect NESR 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 NESR implied volatility affect this butterfly?
- NESR ATM IV is at 45.50% with IV rank near 5.23%, 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.