SSRM Butterfly Strategy
SSRM (SSR Mining Inc.), in the Basic Materials sector, (Gold industry), listed on NASDAQ.
SSR Mining, Inc. is a metals mining company with assets located in four jurisdictions: the USA, Turkiye, Canada, and Argentina, which engages in the operation, acquisition, exploration and development of precious metal resource properties. The firm produces gold ore as well as copper, silver, lead and zinc concentrates. It operates through the following business segments: Copler, Marigold, Crippler Creek and Victor, Seabee and Puna. The company was founded on December 11, 1946 and is headquartered in Denver, CO.
SSRM (SSR Mining Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $6.75B, a trailing P/E of 25.22, a beta of 0.90 versus the broader market, a 52-week range of 15.99-36.52, average daily share volume of 3.3M, a public-listing history dating back to 1996, approximately 5K full-time employees. These structural characteristics shape how SSRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places SSRM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SSRM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SSRM?
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.
SSRM snapshot
As of August 14, 2026, spot at $32.16, ATM IV 54.00%, IV rank 26.55%, expected move 15.48%. The butterfly on SSRM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on SSRM specifically: SSRM IV at 54.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a SSRM butterfly, with a market-implied 1-standard-deviation move of approximately 15.48% (roughly $4.98 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SSRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SSRM should anchor to the underlying notional of $32.16 per share and to the trader's directional view on SSRM stock.
SSRM butterfly setup
The SSRM butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SSRM at $32.16 on that close, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SSRM chain at a 35-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 SSRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.00 | $2.83 |
| Sell 2 | Call | $32.00 | $2.30 |
| Buy 1 | Call | $34.00 | $1.50 |
SSRM butterfly risk and reward
- Net Premium / Debit
- +$27.50
- Max Profit (per contract)
- $127.16
- Max Loss (per contract)
- -$72.50
- Breakeven(s)
- $33.28
- Risk / Reward Ratio
- 1.754
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.
SSRM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SSRM. 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% | +$27.50 |
| $7.12 | -77.9% | +$27.50 |
| $14.23 | -55.8% | +$27.50 |
| $21.34 | -33.6% | +$27.50 |
| $28.45 | -11.5% | +$27.50 |
| $35.56 | +10.6% | -$72.50 |
| $42.67 | +32.7% | -$72.50 |
| $49.78 | +54.8% | -$72.50 |
| $56.89 | +76.9% | -$72.50 |
| $64.00 | +99.0% | -$72.50 |
When traders use butterfly on SSRM
Butterflies on SSRM are pinning bets - traders use them when they expect SSRM 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.
SSRM thesis for this butterfly
The market-implied 1-standard-deviation range for SSRM extends from approximately $27.18 on the downside to $37.14 on the upside. A SSRM long call butterfly is a pinning play: it pays maximum at the middle strike if SSRM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SSRM IV rank near 26.55% 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 SSRM at 54.00%. As a Basic Materials name, SSRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SSRM-specific events.
SSRM 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. SSRM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SSRM alongside the broader basket even when SSRM-specific fundamentals are unchanged. Always rebuild the position from current SSRM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SSRM?
- A butterfly on SSRM is the butterfly strategy applied to SSRM (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 SSRM stock at $32.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SSRM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SSRM 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 SSRM butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.00%), the computed maximum profit is $127.16 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SSRM butterfly?
- The breakeven for the SSRM butterfly priced on this page is roughly $33.28 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SSRM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SSRM?
- Butterflies on SSRM are pinning bets - traders use them when they expect SSRM 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 SSRM implied volatility affect this butterfly?
- SSRM ATM IV is at 54.00% with IV rank near 26.55%, 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.