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. provides equipment maintenance, and mining and heavy construction services in Canada, the United States, and Australia. The company's Heavy Construction & Mining division offers constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining, pre-stripping/pit pioneering, overburden removal and stockpile, muskeg removal and stockpile, site preparation, air strip construction, site dewatering/perimeter ditching, tailings and process pipelines, haulage and access road construction, tailings dam construction and densification, mechanically stabilized earth walls, dyke construction, and reclamation services. Its Equipment Maintenance Services division provides fuel and lube servicing, portable steaming, equipment inspections, parts and component supply, major overhauls and equipment refurbishment, onsite haul truck brake testing, onsite maintenance support, under carriage rebuild, machining, hose manufacturing, and technical support services, as well as welding, fabrication/repairs, weld certification, and inspection services. As of December 31, 2021, the company operated a heavy equipment fleet of 632 units. It serves resource development and industrial construction sectors. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018.
NOA (North American Construction Group Ltd.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $408.9M, a trailing P/E of 16.52, a beta of 1.16 versus the broader market, a 52-week range of 12.07-18.24, average daily share volume of 132K, a public-listing history dating back to 2006, approximately 2K 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 1.16 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.
Current NOA snapshot
As of May 15, 2026, spot at $15.45, ATM IV 69.80%, IV rank 33.52%, expected move 20.01%. The butterfly on NOA 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 NOA specifically: NOA IV at 69.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 20.01% (roughly $3.09 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 NOA expiries trade a higher absolute premium for lower per-day decay. Position sizing on NOA should anchor to the underlying notional of $15.45 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 near $15.45, the first option leg uses a $14.68 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 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 NOA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.68 | N/A |
| Sell 2 | Call | $15.45 | N/A |
| Buy 1 | Call | $16.22 | 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 $12.36 on the downside to $18.54 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 33.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NOA should anchor more to the directional view and the expected-move geometry. 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 trading near $15.45, the strikes shown on this page are snapped to the nearest listed NOA chain strike and the premiums come straight from the end-of-day 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 69.80%), 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 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 NOA market-implied 1-standard-deviation expected move is approximately 20.01%; 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 69.80% with IV rank near 33.52%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.