PUMP Butterfly Strategy
PUMP (ProPetro Holding Corp.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
ProPetro Holding Corp., an oilfield services company, provides hydraulic fracturing and other related services. The company operates through Pressure Pumping and All Other segments. It offers cementing, acidizing, and coiled tubing services. The company serves oil and gas companies engaged in the exploration and production of North American oil and natural gas resources. As of December 31, 2021, its fleet comprised 12 hydraulic fracturing units with 1,423,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.
PUMP (ProPetro Holding Corp.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $2.03B, a beta of 0.77 versus the broader market, a 52-week range of 4.51-18.5, average daily share volume of 3.7M, a public-listing history dating back to 2017, approximately 2K full-time employees. These structural characteristics shape how PUMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places PUMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on PUMP?
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 PUMP snapshot
As of May 15, 2026, spot at $17.61, ATM IV 59.20%, IV rank 30.51%, expected move 16.97%. The butterfly on PUMP 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 PUMP specifically: PUMP IV at 59.20% 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 16.97% (roughly $2.99 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 PUMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PUMP should anchor to the underlying notional of $17.61 per share and to the trader's directional view on PUMP stock.
PUMP butterfly setup
The PUMP 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 PUMP near $17.61, the first option leg uses a $16.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PUMP 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 PUMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $16.73 | N/A |
| Sell 2 | Call | $17.61 | N/A |
| Buy 1 | Call | $18.49 | N/A |
PUMP 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.
PUMP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PUMP. 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 PUMP
Butterflies on PUMP are pinning bets - traders use them when they expect PUMP 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.
PUMP thesis for this butterfly
The market-implied 1-standard-deviation range for PUMP extends from approximately $14.62 on the downside to $20.60 on the upside. A PUMP long call butterfly is a pinning play: it pays maximum at the middle strike if PUMP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PUMP IV rank near 30.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PUMP should anchor more to the directional view and the expected-move geometry. As a Energy name, PUMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PUMP-specific events.
PUMP 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. PUMP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PUMP alongside the broader basket even when PUMP-specific fundamentals are unchanged. Always rebuild the position from current PUMP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PUMP?
- A butterfly on PUMP is the butterfly strategy applied to PUMP (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 PUMP stock trading near $17.61, the strikes shown on this page are snapped to the nearest listed PUMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PUMP 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 PUMP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.20%), 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 PUMP butterfly?
- The breakeven for the PUMP 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 PUMP market-implied 1-standard-deviation expected move is approximately 16.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PUMP?
- Butterflies on PUMP are pinning bets - traders use them when they expect PUMP 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 PUMP implied volatility affect this butterfly?
- PUMP ATM IV is at 59.20% with IV rank near 30.51%, 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.