TSAT Butterfly Strategy
TSAT (Telesat Corporation), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Telesat Corporation, a satellite operator, provides mission-critical communications services to broadcast, enterprise, and consulting customers worldwide. The company's satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers' homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services, such as satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services, including space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; and rural telephony to telecommunications carriers and network services integrators. In addition, it offers broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels; services to the U.S. government through government service integrators, and satellite services to the Canadian government; and direct-to-consumer broadband services. Further, the company operates satellite and hybrid satellite/terrestrial networks; and communications services for the oil and gas and mining industries.
TSAT (Telesat Corporation) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $793.0M, a beta of 2.00 versus the broader market, a 52-week range of 15.42-55.83, average daily share volume of 184K, a public-listing history dating back to 2005, approximately 610 full-time employees. These structural characteristics shape how TSAT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.00 indicates TSAT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on TSAT?
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 TSAT snapshot
As of May 15, 2026, spot at $52.74, ATM IV 85.00%, IV rank 54.60%, expected move 24.37%. The butterfly on TSAT 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 TSAT specifically: TSAT IV at 85.00% 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 24.37% (roughly $12.85 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 TSAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSAT should anchor to the underlying notional of $52.74 per share and to the trader's directional view on TSAT stock.
TSAT butterfly setup
The TSAT 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 TSAT near $52.74, the first option leg uses a $50.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSAT 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 TSAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $50.10 | N/A |
| Sell 2 | Call | $52.74 | N/A |
| Buy 1 | Call | $55.38 | N/A |
TSAT 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.
TSAT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TSAT. 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 TSAT
Butterflies on TSAT are pinning bets - traders use them when they expect TSAT 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.
TSAT thesis for this butterfly
The market-implied 1-standard-deviation range for TSAT extends from approximately $39.89 on the downside to $65.59 on the upside. A TSAT long call butterfly is a pinning play: it pays maximum at the middle strike if TSAT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSAT IV rank near 54.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TSAT should anchor more to the directional view and the expected-move geometry. As a Technology name, TSAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSAT-specific events.
TSAT 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. TSAT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSAT alongside the broader basket even when TSAT-specific fundamentals are unchanged. Always rebuild the position from current TSAT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TSAT?
- A butterfly on TSAT is the butterfly strategy applied to TSAT (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 TSAT stock trading near $52.74, the strikes shown on this page are snapped to the nearest listed TSAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSAT 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 TSAT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 85.00%), 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 TSAT butterfly?
- The breakeven for the TSAT 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 TSAT market-implied 1-standard-deviation expected move is approximately 24.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TSAT?
- Butterflies on TSAT are pinning bets - traders use them when they expect TSAT 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 TSAT implied volatility affect this butterfly?
- TSAT ATM IV is at 85.00% with IV rank near 54.60%, 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.