NVTS Butterfly Strategy
NVTS (Navitas Semiconductor Corp), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Navitas Semiconductor Corporation designs, develops, and markets power semiconductors in the United States, Europe, China, rest of Asia, and internationally. The company offers gallium nitride power integrated circuits, silicon carbide power devices, silicon system controllers, and digital isolators for power conversion and charging. Its products are used in automotive, data center, mobile, consumer electronics markets, and various other applications. The company was founded in 2014 and is based in Torrance, California.
NVTS (Navitas Semiconductor Corp) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.64B, a beta of 3.88 versus the broader market, a 52-week range of 5.44-34.17, average daily share volume of 28.0M, a public-listing history dating back to 2021, approximately 190 full-time employees. These structural characteristics shape how NVTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.88 indicates NVTS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on NVTS?
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.
NVTS snapshot
As of August 14, 2026, spot at $14.43, ATM IV 92.53%, IV rank 17.46%, expected move 26.53%. The butterfly on NVTS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this butterfly structure on NVTS specifically: NVTS IV at 92.53% is on the cheap side of its 1-year range, which favors premium-buying structures like a NVTS butterfly, with a market-implied 1-standard-deviation move of approximately 26.53% (roughly $3.83 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVTS should anchor to the underlying notional of $14.43 per share and to the trader's directional view on NVTS stock.
NVTS butterfly setup
The NVTS butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NVTS at $14.43 on that close, the first option leg uses a $13.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVTS chain at a 28-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 NVTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.50 | $1.94 |
| Sell 2 | Call | $14.50 | $1.44 |
| Buy 1 | Call | $15.00 | $1.24 |
NVTS butterfly risk and reward
- Net Premium / Debit
- -$29.50
- Max Profit (per contract)
- $69.75
- Max Loss (per contract)
- -$29.50
- Breakeven(s)
- $13.80
- Risk / Reward Ratio
- 2.364
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.
NVTS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NVTS. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$29.50 |
| $3.20 | -77.8% | -$29.50 |
| $6.39 | -55.7% | -$29.50 |
| $9.58 | -33.6% | -$29.50 |
| $12.77 | -11.5% | -$29.50 |
| $15.96 | +10.6% | +$20.50 |
| $19.15 | +32.7% | +$20.50 |
| $22.34 | +54.8% | +$20.50 |
| $25.53 | +76.9% | +$20.50 |
| $28.72 | +99.0% | +$20.50 |
When traders use butterfly on NVTS
Butterflies on NVTS are pinning bets - traders use them when they expect NVTS 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.
NVTS thesis for this butterfly
The market-implied 1-standard-deviation range for NVTS extends from approximately $10.60 on the downside to $18.26 on the upside. A NVTS long call butterfly is a pinning play: it pays maximum at the middle strike if NVTS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NVTS IV rank near 17.46% 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 NVTS at 92.53%. As a Technology name, NVTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVTS-specific events.
NVTS 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. NVTS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVTS alongside the broader basket even when NVTS-specific fundamentals are unchanged. Always rebuild the position from current NVTS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NVTS?
- A butterfly on NVTS is the butterfly strategy applied to NVTS (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 NVTS stock at $14.43 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NVTS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NVTS 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 NVTS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.53%), the computed maximum profit is $69.75 per contract and the computed maximum loss is -$29.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVTS butterfly?
- The breakeven for the NVTS butterfly priced on this page is roughly $13.80 at expiration, derived from the August 14, 2026 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 NVTS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NVTS?
- Butterflies on NVTS are pinning bets - traders use them when they expect NVTS 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 NVTS implied volatility affect this butterfly?
- NVTS ATM IV is at 92.53% with IV rank near 17.46%, 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.