SSSS Butterfly Strategy
SSSS (SuRo Capital Corp.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California.
SSSS (SuRo Capital Corp.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $349.1M, a trailing P/E of 1.66, a beta of 1.39 versus the broader market, a 52-week range of 5.7-14.48, average daily share volume of 325K, a public-listing history dating back to 2011, approximately 10 full-time employees. These structural characteristics shape how SSSS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.39 indicates SSSS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 1.66 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SSSS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SSSS?
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 SSSS snapshot
As of May 15, 2026, spot at $13.21, ATM IV 43.00%, IV rank 8.88%, expected move 12.33%. The butterfly on SSSS 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 SSSS specifically: SSSS IV at 43.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a SSSS butterfly, with a market-implied 1-standard-deviation move of approximately 12.33% (roughly $1.63 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 SSSS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SSSS should anchor to the underlying notional of $13.21 per share and to the trader's directional view on SSSS stock.
SSSS butterfly setup
The SSSS 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 SSSS near $13.21, the first option leg uses a $12.55 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SSSS 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 SSSS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.55 | N/A |
| Sell 2 | Call | $13.21 | N/A |
| Buy 1 | Call | $13.87 | N/A |
SSSS 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.
SSSS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SSSS. 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 SSSS
Butterflies on SSSS are pinning bets - traders use them when they expect SSSS 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.
SSSS thesis for this butterfly
The market-implied 1-standard-deviation range for SSSS extends from approximately $11.58 on the downside to $14.84 on the upside. A SSSS long call butterfly is a pinning play: it pays maximum at the middle strike if SSSS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SSSS IV rank near 8.88% 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 SSSS at 43.00%. As a Financial Services name, SSSS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SSSS-specific events.
SSSS 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. SSSS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SSSS alongside the broader basket even when SSSS-specific fundamentals are unchanged. Always rebuild the position from current SSSS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SSSS?
- A butterfly on SSSS is the butterfly strategy applied to SSSS (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 SSSS stock trading near $13.21, the strikes shown on this page are snapped to the nearest listed SSSS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SSSS 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 SSSS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.00%), 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 SSSS butterfly?
- The breakeven for the SSSS 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 SSSS market-implied 1-standard-deviation expected move is approximately 12.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SSSS?
- Butterflies on SSSS are pinning bets - traders use them when they expect SSSS 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 SSSS implied volatility affect this butterfly?
- SSSS ATM IV is at 43.00% with IV rank near 8.88%, 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.