NSP Butterfly Strategy
NSP (Insperity, Inc.), in the Industrials sector, (Staffing & Employment Services industry), listed on NYSE.
Insperity, Inc. provides human resources (HR) and business solutions to improve business performance for small and medium-sized businesses. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. It also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; personnel record management services; and employer liability management services, as well as solutions for middle market. In addition, the company offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; retirement; and insurance services. As of December 31, 2021, it operated through 85 sales offices in the United States. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011.
NSP (Insperity, Inc.) trades in the Industrials sector, specifically Staffing & Employment Services, with a market capitalization of approximately $1.11B, a beta of 0.62 versus the broader market, a 52-week range of 18.57-72.23, average daily share volume of 1.1M, a public-listing history dating back to 1997, approximately 306K full-time employees. These structural characteristics shape how NSP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates NSP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NSP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NSP?
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 NSP snapshot
As of May 15, 2026, spot at $30.20, ATM IV 67.40%, IV rank 36.12%, expected move 19.32%. The butterfly on NSP 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 NSP specifically: NSP IV at 67.40% 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 19.32% (roughly $5.84 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 NSP expiries trade a higher absolute premium for lower per-day decay. Position sizing on NSP should anchor to the underlying notional of $30.20 per share and to the trader's directional view on NSP stock.
NSP butterfly setup
The NSP 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 NSP near $30.20, the first option leg uses a $28.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NSP 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 NSP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.69 | N/A |
| Sell 2 | Call | $30.20 | N/A |
| Buy 1 | Call | $31.71 | N/A |
NSP 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.
NSP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NSP. 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 NSP
Butterflies on NSP are pinning bets - traders use them when they expect NSP 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.
NSP thesis for this butterfly
The market-implied 1-standard-deviation range for NSP extends from approximately $24.36 on the downside to $36.04 on the upside. A NSP long call butterfly is a pinning play: it pays maximum at the middle strike if NSP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NSP IV rank near 36.12% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NSP should anchor more to the directional view and the expected-move geometry. As a Industrials name, NSP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NSP-specific events.
NSP 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. NSP positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NSP alongside the broader basket even when NSP-specific fundamentals are unchanged. Always rebuild the position from current NSP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NSP?
- A butterfly on NSP is the butterfly strategy applied to NSP (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 NSP stock trading near $30.20, the strikes shown on this page are snapped to the nearest listed NSP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NSP 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 NSP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), 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 NSP butterfly?
- The breakeven for the NSP 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 NSP market-implied 1-standard-deviation expected move is approximately 19.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NSP?
- Butterflies on NSP are pinning bets - traders use them when they expect NSP 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 NSP implied volatility affect this butterfly?
- NSP ATM IV is at 67.40% with IV rank near 36.12%, 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.