SGC Butterfly Strategy
SGC (Superior Group of Companies, Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NASDAQ.
Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Uniforms and Related Products, Remote Staffing Solutions, and Promotional Products. The Uniforms and Related Products segment manufactures and sells a range of uniforms, corporate identity apparel, career apparel, and accessories for personnel of hospitals and healthcare facilities; hotels; food and other restaurants; retail stores; special purpose industrial facilities; commercial markets; transportation; public and private safety and security organizations; and miscellaneous service uses. It also provides various products directly related to uniforms and service apparel; industrial laundry bags for linen suppliers and industrial launderers; personal protective equipment; and promotional and related products for branded marketing programs, corporate awards, incentives and recognition programs, event promotions, employee and consumer rewards and incentives, and specialty packaging and displays. This segment sells its products under the Fashion Seal Healthcare, HPI, and WonderWink brand names. The Remote Staffing Solutions segment provides multilingual telemarketing and business process outsourced solutions through the recruitment and employment of qualified English-speaking agents.
SGC (Superior Group of Companies, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $183.7M, a trailing P/E of 20.01, a beta of 1.40 versus the broader market, a 52-week range of 8.3-13.78, average daily share volume of 37K, a public-listing history dating back to 1992, approximately 7K full-time employees. These structural characteristics shape how SGC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates SGC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SGC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SGC?
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 SGC snapshot
As of May 15, 2026, spot at $11.35, ATM IV 55.60%, IV rank 10.13%, expected move 15.94%. The butterfly on SGC 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 SGC specifically: SGC IV at 55.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a SGC butterfly, with a market-implied 1-standard-deviation move of approximately 15.94% (roughly $1.81 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 SGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGC should anchor to the underlying notional of $11.35 per share and to the trader's directional view on SGC stock.
SGC butterfly setup
The SGC 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 SGC near $11.35, the first option leg uses a $10.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGC 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 SGC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.78 | N/A |
| Sell 2 | Call | $11.35 | N/A |
| Buy 1 | Call | $11.92 | N/A |
SGC 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.
SGC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SGC. 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 SGC
Butterflies on SGC are pinning bets - traders use them when they expect SGC 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.
SGC thesis for this butterfly
The market-implied 1-standard-deviation range for SGC extends from approximately $9.54 on the downside to $13.16 on the upside. A SGC long call butterfly is a pinning play: it pays maximum at the middle strike if SGC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SGC IV rank near 10.13% 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 SGC at 55.60%. As a Consumer Cyclical name, SGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGC-specific events.
SGC 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. SGC positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGC alongside the broader basket even when SGC-specific fundamentals are unchanged. Always rebuild the position from current SGC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SGC?
- A butterfly on SGC is the butterfly strategy applied to SGC (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 SGC stock trading near $11.35, the strikes shown on this page are snapped to the nearest listed SGC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGC 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 SGC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.60%), 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 SGC butterfly?
- The breakeven for the SGC 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 SGC market-implied 1-standard-deviation expected move is approximately 15.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SGC?
- Butterflies on SGC are pinning bets - traders use them when they expect SGC 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 SGC implied volatility affect this butterfly?
- SGC ATM IV is at 55.60% with IV rank near 10.13%, 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.