SSD Butterfly Strategy
SSD (Simpson Manufacturing Co., Inc.), in the Industrials sector, (Construction industry), listed on NYSE.
Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells wood and concrete construction products. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.
SSD (Simpson Manufacturing Co., Inc.) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $7.59B, a trailing P/E of 21.39, a beta of 1.34 versus the broader market, a 52-week range of 151.38-211.98, average daily share volume of 366K, a public-listing history dating back to 1994, approximately 6K full-time employees. These structural characteristics shape how SSD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.34 indicates SSD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SSD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SSD?
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 SSD snapshot
As of May 15, 2026, spot at $178.89, ATM IV 28.30%, IV rank 18.06%, expected move 8.11%. The butterfly on SSD 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 SSD specifically: SSD IV at 28.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a SSD butterfly, with a market-implied 1-standard-deviation move of approximately 8.11% (roughly $14.51 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 SSD expiries trade a higher absolute premium for lower per-day decay. Position sizing on SSD should anchor to the underlying notional of $178.89 per share and to the trader's directional view on SSD stock.
SSD butterfly setup
The SSD 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 SSD near $178.89, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SSD 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 SSD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $170.00 | $12.15 |
| Sell 2 | Call | $180.00 | $5.90 |
| Buy 1 | Call | $190.00 | $2.38 |
SSD butterfly risk and reward
- Net Premium / Debit
- -$272.50
- Max Profit (per contract)
- $706.89
- Max Loss (per contract)
- -$272.50
- Breakeven(s)
- $172.73, $187.28
- Risk / Reward Ratio
- 2.594
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.
SSD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SSD. 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 | -100.0% | -$272.50 |
| $39.56 | -77.9% | -$272.50 |
| $79.11 | -55.8% | -$272.50 |
| $118.67 | -33.7% | -$272.50 |
| $158.22 | -11.6% | -$272.50 |
| $197.77 | +10.6% | -$272.50 |
| $237.32 | +32.7% | -$272.50 |
| $276.88 | +54.8% | -$272.50 |
| $316.43 | +76.9% | -$272.50 |
| $355.98 | +99.0% | -$272.50 |
When traders use butterfly on SSD
Butterflies on SSD are pinning bets - traders use them when they expect SSD 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.
SSD thesis for this butterfly
The market-implied 1-standard-deviation range for SSD extends from approximately $164.38 on the downside to $193.40 on the upside. A SSD long call butterfly is a pinning play: it pays maximum at the middle strike if SSD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SSD IV rank near 18.06% 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 SSD at 28.30%. As a Industrials name, SSD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SSD-specific events.
SSD 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. SSD positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SSD alongside the broader basket even when SSD-specific fundamentals are unchanged. Always rebuild the position from current SSD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SSD?
- A butterfly on SSD is the butterfly strategy applied to SSD (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 SSD stock trading near $178.89, the strikes shown on this page are snapped to the nearest listed SSD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SSD 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 SSD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $706.89 per contract and the computed maximum loss is -$272.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SSD butterfly?
- The breakeven for the SSD butterfly priced on this page is roughly $172.73 and $187.28 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 SSD market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SSD?
- Butterflies on SSD are pinning bets - traders use them when they expect SSD 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 SSD implied volatility affect this butterfly?
- SSD ATM IV is at 28.30% with IV rank near 18.06%, 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.