SATL Butterfly Strategy
SATL (Satellogic Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
Satellogic Inc. builds and operates nano satellites for commercial-grade Earth observation in real-time. It offers data streams that are used in decision-making processes for various branches of government, organizations, businesses, and individuals. Its satellites are used for applications in agriculture, pipeline monitoring, critical infrastructure monitoring, disaster response, illegal logging, border patrol, port security, and other applications. The company was founded in 2010 and is based in Palo Alto, California.
SATL (Satellogic Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $973.3M, a beta of 1.06 versus the broader market, a 52-week range of 1.255-8.9, average daily share volume of 9.6M, a public-listing history dating back to 2021, approximately 137 full-time employees. These structural characteristics shape how SATL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places SATL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SATL?
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 SATL snapshot
As of May 15, 2026, spot at $9.81, ATM IV 122.10%, IV rank 20.91%, expected move 35.00%. The butterfly on SATL 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 SATL specifically: SATL IV at 122.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a SATL butterfly, with a market-implied 1-standard-deviation move of approximately 35.00% (roughly $3.43 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 SATL expiries trade a higher absolute premium for lower per-day decay. Position sizing on SATL should anchor to the underlying notional of $9.81 per share and to the trader's directional view on SATL stock.
SATL butterfly setup
The SATL 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 SATL near $9.81, the first option leg uses a $9.32 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SATL 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 SATL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.32 | N/A |
| Sell 2 | Call | $9.81 | N/A |
| Buy 1 | Call | $10.30 | N/A |
SATL 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.
SATL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SATL. 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 SATL
Butterflies on SATL are pinning bets - traders use them when they expect SATL 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.
SATL thesis for this butterfly
The market-implied 1-standard-deviation range for SATL extends from approximately $6.38 on the downside to $13.24 on the upside. A SATL long call butterfly is a pinning play: it pays maximum at the middle strike if SATL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SATL IV rank near 20.91% 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 SATL at 122.10%. As a Technology name, SATL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SATL-specific events.
SATL 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. SATL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SATL alongside the broader basket even when SATL-specific fundamentals are unchanged. Always rebuild the position from current SATL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SATL?
- A butterfly on SATL is the butterfly strategy applied to SATL (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 SATL stock trading near $9.81, the strikes shown on this page are snapped to the nearest listed SATL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SATL 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 SATL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 122.10%), 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 SATL butterfly?
- The breakeven for the SATL 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 SATL market-implied 1-standard-deviation expected move is approximately 35.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SATL?
- Butterflies on SATL are pinning bets - traders use them when they expect SATL 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 SATL implied volatility affect this butterfly?
- SATL ATM IV is at 122.10% with IV rank near 20.91%, 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.