SERV Butterfly Strategy
SERV (Serve Robotics Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Serve Robotics Inc. specializes in the development, deployment, and operation of autonomous, environmentally conscious robots. These advanced robotic systems are designed to provide efficient food delivery services to people in public spaces, exclusively within the United States. The company, which builds its own self-navigating delivery units, was established in 2017. Its headquarters are situated in Redwood City, California. Notably, the entity operated under the name Patricia Acquisition Corp. until July 2023, when it officially rebranded as Serve Robotics Inc.
SERV (Serve Robotics Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $373.7M, a beta of 2.47 versus the broader market, a 52-week range of 4.32-18.64, average daily share volume of 4.3M, a public-listing history dating back to 2024, approximately 375 full-time employees. These structural characteristics shape how SERV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.47 indicates SERV has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SERV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SERV?
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.
SERV snapshot
As of August 14, 2026, spot at $4.94, ATM IV 85.83%, IV rank 12.52%, expected move 24.61%. The butterfly on SERV 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 SERV specifically: SERV IV at 85.83% is on the cheap side of its 1-year range, which favors premium-buying structures like a SERV butterfly, with a market-implied 1-standard-deviation move of approximately 24.61% (roughly $1.22 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 SERV expiries trade a higher absolute premium for lower per-day decay. Position sizing on SERV should anchor to the underlying notional of $4.94 per share and to the trader's directional view on SERV stock.
SERV butterfly setup
The SERV 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 SERV at $4.94 on that close, the first option leg uses a $4.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SERV 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 SERV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.50 | $0.67 |
| Sell 2 | Call | $5.00 | $0.43 |
| Buy 1 | Call | $5.00 | $0.43 |
SERV butterfly risk and reward
- Net Premium / Debit
- -$24.50
- Max Profit (per contract)
- $25.50
- Max Loss (per contract)
- -$24.50
- Breakeven(s)
- $4.75
- Risk / Reward Ratio
- 1.041
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.
SERV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SERV. 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 | -99.8% | -$24.50 |
| $1.10 | -77.7% | -$24.50 |
| $2.19 | -55.6% | -$24.50 |
| $3.28 | -33.5% | -$24.50 |
| $4.37 | -11.4% | -$24.50 |
| $5.47 | +10.6% | +$25.50 |
| $6.56 | +32.7% | +$25.50 |
| $7.65 | +54.8% | +$25.50 |
| $8.74 | +76.9% | +$25.50 |
| $9.83 | +99.0% | +$25.50 |
When traders use butterfly on SERV
Butterflies on SERV are pinning bets - traders use them when they expect SERV 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.
SERV thesis for this butterfly
The market-implied 1-standard-deviation range for SERV extends from approximately $3.72 on the downside to $6.16 on the upside. A SERV long call butterfly is a pinning play: it pays maximum at the middle strike if SERV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SERV IV rank near 12.52% 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 SERV at 85.83%. As a Industrials name, SERV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SERV-specific events.
SERV 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. SERV positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SERV alongside the broader basket even when SERV-specific fundamentals are unchanged. Always rebuild the position from current SERV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SERV?
- A butterfly on SERV is the butterfly strategy applied to SERV (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 SERV stock at $4.94 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SERV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SERV 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 SERV butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 85.83%), the computed maximum profit is $25.50 per contract and the computed maximum loss is -$24.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SERV butterfly?
- The breakeven for the SERV butterfly priced on this page is roughly $4.75 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 SERV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SERV?
- Butterflies on SERV are pinning bets - traders use them when they expect SERV 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 SERV implied volatility affect this butterfly?
- SERV ATM IV is at 85.83% with IV rank near 12.52%, 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.