SOC Butterfly Strategy

SOC (Sable Offshore Corp.), in the Energy sector, (Oil & Gas Drilling industry), listed on NYSE.

Sable Offshore Corp. (SOC) specializes in the exploration and production of oil and natural gas across the United States. The company's operational assets include three offshore platforms located off the California coast, along with an onshore processing facility. These operations are supported by 16 federal leases that encompass approximately 76,000 acres. Established in 2020, the firm was previously known as Flame Acquisition Corp. before officially adopting the name Sable Offshore Corp. in February 2024. Its corporate headquarters are situated in Houston, Texas.

SOC (Sable Offshore Corp.) trades in the Energy sector, specifically Oil & Gas Drilling, with a market capitalization of approximately $732.4M, a beta of -0.23 versus the broader market, a 52-week range of 3.72-32.18, average daily share volume of 3.9M, a public-listing history dating back to 2021, approximately 161 full-time employees. These structural characteristics shape how SOC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.23 indicates SOC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on SOC?

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 SOC snapshot

As of June 29, 2026, spot at $7.12, ATM IV 147.65%, IV rank 41.41%, expected move 42.33%. The butterfly on SOC 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 32-day expiry.

Why this butterfly structure on SOC specifically: SOC IV at 147.65% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 42.33% (roughly $3.01 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SOC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOC should anchor to the underlying notional of $7.12 per share and to the trader's directional view on SOC stock.

SOC butterfly setup

The SOC 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 SOC near $7.12, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOC chain at a 32-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 SOC shares for the stock leg in covered calls and collars).

SOC butterfly risk and reward

Net Premium / Debit

+$27.00

Max Profit (per contract)

$27.00

Max Loss (per contract)

-$23.00

Breakeven(s)

$7.27

Risk / Reward Ratio

1.174

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.

SOC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SOC. 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 SOC

Butterflies on SOC are pinning bets - traders use them when they expect SOC 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.

SOC thesis for this butterfly

The market-implied 1-standard-deviation range for SOC extends from approximately $4.11 on the downside to $10.13 on the upside. A SOC long call butterfly is a pinning play: it pays maximum at the middle strike if SOC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SOC IV rank near 41.41% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SOC should anchor more to the directional view and the expected-move geometry. As a Energy name, SOC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOC-specific events.

SOC 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. SOC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SOC alongside the broader basket even when SOC-specific fundamentals are unchanged. Always rebuild the position from current SOC chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on SOC?

A butterfly on SOC is the butterfly strategy applied to SOC (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 SOC stock trading near $7.12, the strikes shown on this page are snapped to the nearest listed SOC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.

How are SOC 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 SOC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 147.65%), the computed maximum profit is $27.00 per contract and the computed maximum loss is -$23.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOC butterfly?

The breakeven for the SOC butterfly priced on this page is roughly $7.27 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 SOC market-implied 1-standard-deviation expected move is approximately 42.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

When should you consider a butterfly on SOC?

Butterflies on SOC are pinning bets - traders use them when they expect SOC 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 SOC implied volatility affect this butterfly?

SOC ATM IV is at 147.65% with IV rank near 41.41%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

Related SOC analysis

• Butterfly strategy reference
• SOC options overview
• SOC P&L curve (full chain)
• SOC options chain
• SOC volatility skew