SGHC Butterfly Strategy
SGHC (Super Group (SGHC) Limited), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NYSE.
Super Group (SGHC) Limited operates as an online sports betting and gaming operator. It offers Betway, an online sports betting brand; and Spin, a multi-brand online casino offering. The company is based in Saint Peter Port, Guernsey.
SGHC (Super Group (SGHC) Limited) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $6.63B, a trailing P/E of 28.50, a beta of 1.13 versus the broader market, a 52-week range of 8.12-14.38, average daily share volume of 3.3M, a public-listing history dating back to 2020, approximately 4K full-time employees. These structural characteristics shape how SGHC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places SGHC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SGHC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SGHC?
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 SGHC snapshot
As of May 15, 2026, spot at $13.16, ATM IV 52.90%, IV rank 27.00%, expected move 15.17%. The butterfly on SGHC 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 63-day expiry.
Why this butterfly structure on SGHC specifically: SGHC IV at 52.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a SGHC butterfly, with a market-implied 1-standard-deviation move of approximately 15.17% (roughly $2.00 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SGHC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGHC should anchor to the underlying notional of $13.16 per share and to the trader's directional view on SGHC stock.
SGHC butterfly setup
The SGHC 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 SGHC near $13.16, the first option leg uses a $12.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGHC chain at a 63-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 SGHC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.75 | $1.30 |
| Sell 2 | Call | $12.75 | $1.30 |
| Buy 1 | Call | $13.75 | $0.83 |
SGHC butterfly risk and reward
- Net Premium / Debit
- +$47.50
- Max Profit (per contract)
- $47.50
- Max Loss (per contract)
- -$52.50
- Breakeven(s)
- $13.23
- Risk / Reward Ratio
- 0.905
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.
SGHC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SGHC. 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% | +$47.50 |
| $2.92 | -77.8% | +$47.50 |
| $5.83 | -55.7% | +$47.50 |
| $8.74 | -33.6% | +$47.50 |
| $11.64 | -11.5% | +$47.50 |
| $14.55 | +10.6% | -$52.50 |
| $17.46 | +32.7% | -$52.50 |
| $20.37 | +54.8% | -$52.50 |
| $23.28 | +76.9% | -$52.50 |
| $26.19 | +99.0% | -$52.50 |
When traders use butterfly on SGHC
Butterflies on SGHC are pinning bets - traders use them when they expect SGHC 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.
SGHC thesis for this butterfly
The market-implied 1-standard-deviation range for SGHC extends from approximately $11.16 on the downside to $15.16 on the upside. A SGHC long call butterfly is a pinning play: it pays maximum at the middle strike if SGHC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SGHC IV rank near 27.00% 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 SGHC at 52.90%. As a Consumer Cyclical name, SGHC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGHC-specific events.
SGHC 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. SGHC positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGHC alongside the broader basket even when SGHC-specific fundamentals are unchanged. Always rebuild the position from current SGHC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SGHC?
- A butterfly on SGHC is the butterfly strategy applied to SGHC (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 SGHC stock trading near $13.16, the strikes shown on this page are snapped to the nearest listed SGHC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGHC 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 SGHC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.90%), the computed maximum profit is $47.50 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SGHC butterfly?
- The breakeven for the SGHC butterfly priced on this page is roughly $13.23 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 SGHC market-implied 1-standard-deviation expected move is approximately 15.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SGHC?
- Butterflies on SGHC are pinning bets - traders use them when they expect SGHC 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 SGHC implied volatility affect this butterfly?
- SGHC ATM IV is at 52.90% with IV rank near 27.00%, 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.