STN Butterfly Strategy
STN (Stantec Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Stantec Inc. provides engineering, architecture, and environmental consulting services in the areas of infrastructure and facilities in Canada, the United States, and internationally. The company provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. It also offers structural, mechanical, electrical, plumbing, and hydraulics engineering services; transportation advisory, planning and analytics, transport engineering, and technical design; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; environmental and infrastructure services; and environmental and cultural resource compliance services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.
STN (Stantec Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $8.89B, a trailing P/E of 25.44, a beta of 0.72 versus the broader market, a 52-week range of 77.41-114.52, average daily share volume of 351K, a public-listing history dating back to 2005, approximately 32K full-time employees. These structural characteristics shape how STN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places STN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. STN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on STN?
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 STN snapshot
As of May 15, 2026, spot at $77.02, ATM IV 34.90%, IV rank 4.68%, expected move 10.01%. The butterfly on STN 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 STN specifically: STN IV at 34.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a STN butterfly, with a market-implied 1-standard-deviation move of approximately 10.01% (roughly $7.71 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 STN expiries trade a higher absolute premium for lower per-day decay. Position sizing on STN should anchor to the underlying notional of $77.02 per share and to the trader's directional view on STN stock.
STN butterfly setup
The STN 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 STN near $77.02, the first option leg uses a $73.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STN 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 STN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $73.17 | N/A |
| Sell 2 | Call | $77.02 | N/A |
| Buy 1 | Call | $80.87 | N/A |
STN 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.
STN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on STN. 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 STN
Butterflies on STN are pinning bets - traders use them when they expect STN 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.
STN thesis for this butterfly
The market-implied 1-standard-deviation range for STN extends from approximately $69.31 on the downside to $84.73 on the upside. A STN long call butterfly is a pinning play: it pays maximum at the middle strike if STN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current STN IV rank near 4.68% 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 STN at 34.90%. As a Industrials name, STN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STN-specific events.
STN 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. STN positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STN alongside the broader basket even when STN-specific fundamentals are unchanged. Always rebuild the position from current STN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on STN?
- A butterfly on STN is the butterfly strategy applied to STN (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 STN stock trading near $77.02, the strikes shown on this page are snapped to the nearest listed STN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STN 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 STN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.90%), 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 STN butterfly?
- The breakeven for the STN 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 STN market-implied 1-standard-deviation expected move is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on STN?
- Butterflies on STN are pinning bets - traders use them when they expect STN 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 STN implied volatility affect this butterfly?
- STN ATM IV is at 34.90% with IV rank near 4.68%, 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.