SURG Butterfly Strategy
SURG (SurgePays, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
SurgePays, Inc., a financial technology and telecommunications company, provides services to the underbanked community in the United States. Its blockchain platform utilizes a suite of financial and prepaid products to convert corner stores and bodegas into tech-hubs for underbanked neighborhoods. The company offers voice and SMS text messaging services to subsidized and direct retail prepaid customers, as well as to low-income consumers. It also offers subsidized mobile broadband services to consumers in California, Colorado, Florida, Illinois, Maryland, Mississippi, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas, as well as prepaid wireless plans. In addition, the company provides marketing business intelligence, plaintiff generation, and case load management solutions primarily to law firms in the mass tort industry. Further, it operates a bilingual operations center offering the Company with sales support, customer service, IT infrastructure design, graphic media, database programming, software development, revenue assurance, lead generation, and other various operational support services.
SURG (SurgePays, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $12.0M, a beta of 0.20 versus the broader market, a 52-week range of 0.46-3.45, average daily share volume of 349K, a public-listing history dating back to 2018, approximately 130 full-time employees. These structural characteristics shape how SURG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.20 indicates SURG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on SURG?
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 SURG snapshot
As of May 15, 2026, spot at $0.52, ATM IV 26.90%, IV rank 2.56%, expected move 7.71%. The butterfly on SURG 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 SURG specifically: SURG IV at 26.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a SURG butterfly, with a market-implied 1-standard-deviation move of approximately 7.71% (roughly $0.04 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 SURG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SURG should anchor to the underlying notional of $0.52 per share and to the trader's directional view on SURG stock.
SURG butterfly setup
The SURG 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 SURG near $0.52, the first option leg uses a $0.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SURG 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 SURG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.49 | N/A |
| Sell 2 | Call | $0.52 | N/A |
| Buy 1 | Call | $0.55 | N/A |
SURG 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.
SURG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SURG. 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 SURG
Butterflies on SURG are pinning bets - traders use them when they expect SURG 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.
SURG thesis for this butterfly
The market-implied 1-standard-deviation range for SURG extends from approximately $0.48 on the downside to $0.56 on the upside. A SURG long call butterfly is a pinning play: it pays maximum at the middle strike if SURG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SURG IV rank near 2.56% 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 SURG at 26.90%. As a Technology name, SURG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SURG-specific events.
SURG 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. SURG positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SURG alongside the broader basket even when SURG-specific fundamentals are unchanged. Always rebuild the position from current SURG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SURG?
- A butterfly on SURG is the butterfly strategy applied to SURG (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 SURG stock trading near $0.52, the strikes shown on this page are snapped to the nearest listed SURG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SURG 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 SURG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.90%), 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 SURG butterfly?
- The breakeven for the SURG 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 SURG market-implied 1-standard-deviation expected move is approximately 7.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SURG?
- Butterflies on SURG are pinning bets - traders use them when they expect SURG 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 SURG implied volatility affect this butterfly?
- SURG ATM IV is at 26.90% with IV rank near 2.56%, 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.