SMHI Butterfly Strategy
SMHI (SEACOR Marine Holdings Inc.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
SEACOR Marine Holdings Inc. provides marine and support transportation services to offshore oil, natural gas, and windfarm facilities worldwide. Its offshore support and specialty vessels deliver cargo and personnel to offshore installations, including wind farms; handle anchors and mooring equipment required to tether rigs to the seabed; assist in placing them on location and moving them between regions; provide construction, well work-over, maintenance, and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance, inspection, and repair, as well as offer accommodations for technicians and specialists, safety support, and emergency response services. As of December 31, 2021, the company operated a fleet of 81 support and specialty vessels, of which 60 were owned or leased-in, 20 were joint-ventured, and 1 was managed on behalf of unaffiliated third parties. It serves integrated oil companies, large independent oil and natural gas exploration and production companies, and emerging independent companies, as well as windfarm operations and installation contractors. The company was founded in 1989 and is headquartered in Houston, Texas.
SMHI (SEACOR Marine Holdings Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $196.7M, a beta of 1.13 versus the broader market, a 52-week range of 4.695-8.17, average daily share volume of 114K, a public-listing history dating back to 2017, approximately 1K full-time employees. These structural characteristics shape how SMHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places SMHI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SMHI?
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 SMHI snapshot
As of May 15, 2026, spot at $7.20, ATM IV 130.60%, IV rank 22.87%, expected move 37.44%. The butterfly on SMHI 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 SMHI specifically: SMHI IV at 130.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a SMHI butterfly, with a market-implied 1-standard-deviation move of approximately 37.44% (roughly $2.70 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 SMHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMHI should anchor to the underlying notional of $7.20 per share and to the trader's directional view on SMHI stock.
SMHI butterfly setup
The SMHI 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 SMHI near $7.20, the first option leg uses a $6.84 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMHI 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 SMHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.84 | N/A |
| Sell 2 | Call | $7.20 | N/A |
| Buy 1 | Call | $7.56 | N/A |
SMHI 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.
SMHI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SMHI. 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 SMHI
Butterflies on SMHI are pinning bets - traders use them when they expect SMHI 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.
SMHI thesis for this butterfly
The market-implied 1-standard-deviation range for SMHI extends from approximately $4.50 on the downside to $9.90 on the upside. A SMHI long call butterfly is a pinning play: it pays maximum at the middle strike if SMHI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SMHI IV rank near 22.87% 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 SMHI at 130.60%. As a Industrials name, SMHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMHI-specific events.
SMHI 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. SMHI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SMHI alongside the broader basket even when SMHI-specific fundamentals are unchanged. Always rebuild the position from current SMHI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SMHI?
- A butterfly on SMHI is the butterfly strategy applied to SMHI (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 SMHI stock trading near $7.20, the strikes shown on this page are snapped to the nearest listed SMHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SMHI 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 SMHI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 130.60%), 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 SMHI butterfly?
- The breakeven for the SMHI 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 SMHI market-implied 1-standard-deviation expected move is approximately 37.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SMHI?
- Butterflies on SMHI are pinning bets - traders use them when they expect SMHI 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 SMHI implied volatility affect this butterfly?
- SMHI ATM IV is at 130.60% with IV rank near 22.87%, 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.