NOA Butterfly Strategy
NOA (North American Construction Group Ltd.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
North American Construction Group Ltd. (NOA) is a leading provider of comprehensive heavy construction, mining, and equipment maintenance solutions, with operations spanning Canada, the United States, and Australia. Its Heavy Construction & Mining division delivers a wide range of services, from pre-construction phases like constructability reviews, budgetary estimations, and design-build projects, to complete project management. Core mining activities include contract mining, initial site preparation (pre-stripping/pit pioneering), and the removal and stockpiling of both overburden and muskeg. The division also undertakes significant infrastructure development, such as site preparation, airstrip construction, site dewatering and perimeter ditching, installing tailings and process pipelines, building haulage and access roads, constructing and densifying tailings dams, creating mechanically stabilized earth walls, and dyke construction, all complemented by essential reclamation services. The Equipment Maintenance Services division ensures operational efficiency through offerings like fuel and lubrication, portable steaming, thorough equipment inspections, and supplying necessary parts and components. It handles major repair work, including complete overhauls, equipment refurbishment, undercarriage rebuilding, and precision machining.
NOA (North American Construction Group Ltd.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $414.4M, a trailing P/E of 17.80, a beta of 1.15 versus the broader market, a 52-week range of 12.07-17.26, average daily share volume of 106K, a public-listing history dating back to 2006, approximately 479 full-time employees. These structural characteristics shape how NOA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.15 places NOA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NOA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NOA?
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.
NOA snapshot
As of August 14, 2026, spot at $13.94, ATM IV 11.60%, IV rank 0.00%, expected move 3.33%. The butterfly on NOA below is built from the 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 NOA specifically: NOA IV at 11.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a NOA butterfly, with a market-implied 1-standard-deviation move of approximately 3.33% (roughly $0.46 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 NOA expiries trade a higher absolute premium for lower per-day decay. Position sizing on NOA should anchor to the underlying notional of $13.94 per share and to the trader's directional view on NOA stock.
NOA butterfly setup
The NOA 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 NOA at $13.94 on that close, the first option leg uses a $13.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NOA 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 NOA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.24 | N/A |
| Sell 2 | Call | $13.94 | N/A |
| Buy 1 | Call | $14.64 | N/A |
NOA 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.
NOA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NOA. 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 NOA
Butterflies on NOA are pinning bets - traders use them when they expect NOA 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.
NOA thesis for this butterfly
The market-implied 1-standard-deviation range for NOA extends from approximately $13.48 on the downside to $14.40 on the upside. A NOA long call butterfly is a pinning play: it pays maximum at the middle strike if NOA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NOA IV rank near 0.00% 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 NOA at 11.60%. As a Energy name, NOA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NOA-specific events.
NOA 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. NOA positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NOA alongside the broader basket even when NOA-specific fundamentals are unchanged. Always rebuild the position from current NOA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NOA?
- A butterfly on NOA is the butterfly strategy applied to NOA (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 NOA stock at $13.94 on the most recent close, the strikes shown on this page are snapped to the nearest listed NOA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NOA 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 NOA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 11.60%), 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 NOA butterfly?
- The breakeven for the NOA butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 NOA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NOA?
- Butterflies on NOA are pinning bets - traders use them when they expect NOA 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 NOA implied volatility affect this butterfly?
- NOA ATM IV is at 11.60% with IV rank near 0.00%, 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.