SYPR Butterfly Strategy
SYPR (Sypris Solutions, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Sypris Solutions, Inc. provides truck components, oil and gas pipeline components, and aerospace and defense electronics primarily in North America and Mexico. It operates in two segments, Sypris Technologies and Sypris Electronics. The Sypris Technologies segment supplies forged, machined, welded, and heat-treated steel components for the commercial vehicle, off highway vehicle, recreational vehicle, automotive, industrial, light truck, and energy markets. This segment also offers drive train components, including axle shafts, transmission shafts, gear sets, steer axle knuckles, and other components for automotive, truck, and recreational vehicle manufacturers. In addition, it provides value added operations for drive train assemblies; and manufactures pressure closures and other fabricated products for oil and gas pipelines. The Sypris Electronics segment offers electronic manufacturing services, such as circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability, and design for specification work for aerospace and defense electronics markets.
SYPR (Sypris Solutions, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $72.5M, a beta of 0.87 versus the broader market, a 52-week range of 1.58-4.74, average daily share volume of 89K, a public-listing history dating back to 1994, approximately 713 full-time employees. These structural characteristics shape how SYPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places SYPR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SYPR?
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 SYPR snapshot
As of May 15, 2026, spot at $3.04, ATM IV 218.00%, IV rank 54.93%, expected move 62.50%. The butterfly on SYPR 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 SYPR specifically: SYPR IV at 218.00% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 62.50% (roughly $1.90 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 SYPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on SYPR should anchor to the underlying notional of $3.04 per share and to the trader's directional view on SYPR stock.
SYPR butterfly setup
The SYPR 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 SYPR near $3.04, the first option leg uses a $2.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SYPR 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 SYPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.89 | N/A |
| Sell 2 | Call | $3.04 | N/A |
| Buy 1 | Call | $3.19 | N/A |
SYPR 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.
SYPR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SYPR. 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 SYPR
Butterflies on SYPR are pinning bets - traders use them when they expect SYPR 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.
SYPR thesis for this butterfly
The market-implied 1-standard-deviation range for SYPR extends from approximately $1.14 on the downside to $4.94 on the upside. A SYPR long call butterfly is a pinning play: it pays maximum at the middle strike if SYPR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SYPR IV rank near 54.93% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SYPR should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, SYPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SYPR-specific events.
SYPR 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. SYPR positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SYPR alongside the broader basket even when SYPR-specific fundamentals are unchanged. Always rebuild the position from current SYPR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SYPR?
- A butterfly on SYPR is the butterfly strategy applied to SYPR (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 SYPR stock trading near $3.04, the strikes shown on this page are snapped to the nearest listed SYPR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SYPR 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 SYPR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 218.00%), 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 SYPR butterfly?
- The breakeven for the SYPR 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 SYPR market-implied 1-standard-deviation expected move is approximately 62.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SYPR?
- Butterflies on SYPR are pinning bets - traders use them when they expect SYPR 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 SYPR implied volatility affect this butterfly?
- SYPR ATM IV is at 218.00% with IV rank near 54.93%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.