SPT Butterfly Strategy
SPT (Sprout Social, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It provides cloud software that brings together social messaging, data, and workflows in a unified system of record, intelligence, and action. The company offers provides various integrated tools in a range of functions comprising social engagement/response, publishing, reporting and analytics, social listening and business intelligence, reputation management, employee advocacy, and automation and workflows. Its tools serve a range of use-cases within its customers' organizations, including social and community management, public relations, marketing, customer service and care, commerce, sales and customer acquisition, recruiting and hiring, product development, and business strategy. The company also offers professional services, which primarily consist of consulting and training services. It serves approximately more than 31,000 customers across small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions.
SPT (Sprout Social, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $379.3M, a beta of 0.94 versus the broader market, a 52-week range of 4.92-24.359, average daily share volume of 1.7M, a public-listing history dating back to 2019, approximately 1K full-time employees. These structural characteristics shape how SPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places SPT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SPT?
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 SPT snapshot
As of May 15, 2026, spot at $6.17, ATM IV 79.20%, IV rank 19.13%, expected move 22.71%. The butterfly on SPT 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 SPT specifically: SPT IV at 79.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SPT butterfly, with a market-implied 1-standard-deviation move of approximately 22.71% (roughly $1.40 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 SPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPT should anchor to the underlying notional of $6.17 per share and to the trader's directional view on SPT stock.
SPT butterfly setup
The SPT 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 SPT near $6.17, the first option leg uses a $5.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPT 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 SPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.86 | N/A |
| Sell 2 | Call | $6.17 | N/A |
| Buy 1 | Call | $6.48 | N/A |
SPT 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.
SPT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SPT. 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 SPT
Butterflies on SPT are pinning bets - traders use them when they expect SPT 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.
SPT thesis for this butterfly
The market-implied 1-standard-deviation range for SPT extends from approximately $4.77 on the downside to $7.57 on the upside. A SPT long call butterfly is a pinning play: it pays maximum at the middle strike if SPT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SPT IV rank near 19.13% 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 SPT at 79.20%. As a Technology name, SPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPT-specific events.
SPT 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. SPT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPT alongside the broader basket even when SPT-specific fundamentals are unchanged. Always rebuild the position from current SPT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SPT?
- A butterfly on SPT is the butterfly strategy applied to SPT (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 SPT stock trading near $6.17, the strikes shown on this page are snapped to the nearest listed SPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SPT 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 SPT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 79.20%), 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 SPT butterfly?
- The breakeven for the SPT 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 SPT market-implied 1-standard-deviation expected move is approximately 22.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SPT?
- Butterflies on SPT are pinning bets - traders use them when they expect SPT 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 SPT implied volatility affect this butterfly?
- SPT ATM IV is at 79.20% with IV rank near 19.13%, 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.