NUS Butterfly Strategy
NUS (Nu Skin Enterprises, Inc.), in the Consumer Defensive sector, (Household & Personal Products industry), listed on NYSE.
Nu Skin Enterprises, Inc. develops and distributes beauty and wellness products worldwide. It provides skin care systems, including ageLOC Spa systems, ageLOC Transformation anti-aging skin care systems, and ageLOC LumiSpa skin treatment and cleansing devices; and ageLOC Boost, as well as a range of other cosmetic and personal care products. The company also offers ageLOC Youth nutritional supplements, ageLOC TR90 weight management and body shaping systems, LifePak nutritional supplements, ageLOC Meta nutritional supplements, and Beauty Focus Collagen+ skin care supplements, as well as other weight management products. In addition, it is involved in the research and product development of skin care products and nutritional supplements. Further, the company operates retail stores and service centers in Mainland China. It sells its products under the Nu Skin, Pharmanex, and ageLOC brands.
NUS (Nu Skin Enterprises, Inc.) trades in the Consumer Defensive sector, specifically Household & Personal Products, with a market capitalization of approximately $304.9M, a trailing P/E of 5.55, a beta of 1.02 versus the broader market, a 52-week range of 6.28-14.62, average daily share volume of 592K, a public-listing history dating back to 1996, approximately 3K full-time employees. These structural characteristics shape how NUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places NUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 5.55 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. NUS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NUS?
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 NUS snapshot
As of May 15, 2026, spot at $6.17, ATM IV 166.60%, IV rank 33.15%, expected move 47.76%. The butterfly on NUS 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 NUS specifically: NUS IV at 166.60% 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 47.76% (roughly $2.95 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 NUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NUS should anchor to the underlying notional of $6.17 per share and to the trader's directional view on NUS stock.
NUS butterfly setup
The NUS 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 NUS near $6.17, the first option leg uses a $5.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NUS 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 NUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.86 | N/A |
| Sell 2 | Call | $6.17 | N/A |
| Buy 1 | Call | $6.48 | N/A |
NUS 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.
NUS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NUS. 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 NUS
Butterflies on NUS are pinning bets - traders use them when they expect NUS 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.
NUS thesis for this butterfly
The market-implied 1-standard-deviation range for NUS extends from approximately $3.22 on the downside to $9.12 on the upside. A NUS long call butterfly is a pinning play: it pays maximum at the middle strike if NUS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NUS IV rank near 33.15% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NUS should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, NUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NUS-specific events.
NUS 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. NUS positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NUS alongside the broader basket even when NUS-specific fundamentals are unchanged. Always rebuild the position from current NUS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NUS?
- A butterfly on NUS is the butterfly strategy applied to NUS (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 NUS stock trading near $6.17, the strikes shown on this page are snapped to the nearest listed NUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NUS 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 NUS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 166.60%), 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 NUS butterfly?
- The breakeven for the NUS 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 NUS market-implied 1-standard-deviation expected move is approximately 47.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NUS?
- Butterflies on NUS are pinning bets - traders use them when they expect NUS 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 NUS implied volatility affect this butterfly?
- NUS ATM IV is at 166.60% with IV rank near 33.15%, 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.