USIO Butterfly Strategy
USIO (Usio, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Usio, Inc. provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing, credit, prepaid card, and debit card-based processing services. It also provides a proprietary platform for businesses to handle e-checks and card payments, and an interactive voice response telephone system for companies to accept payments over the telephone. Additionally, the company offers prepaid and incentive card issuance services, a payment facilitation platform, and electronic bill presentment and printing services.
USIO (Usio, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $65.7M, a beta of 1.31 versus the broader market, a 52-week range of 1.03-2.62, average daily share volume of 133K, a public-listing history dating back to 1999, approximately 107 full-time employees. These structural characteristics shape how USIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates USIO 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 USIO?
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.
USIO snapshot
As of August 14, 2026, spot at $2.76, ATM IV 20.90%, IV rank 0.24%, expected move 5.99%. The butterfly on USIO below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on USIO specifically: USIO IV at 20.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a USIO butterfly, with a market-implied 1-standard-deviation move of approximately 5.99% (roughly $0.17 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated USIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on USIO should anchor to the underlying notional of $2.76 per share and to the trader's directional view on USIO stock.
USIO butterfly setup
The USIO 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 USIO at $2.76 on that close, the first option leg uses a $2.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed USIO chain at a 35-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 USIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.62 | N/A |
| Sell 2 | Call | $2.76 | N/A |
| Buy 1 | Call | $2.90 | N/A |
USIO 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.
USIO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on USIO. 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 USIO
Butterflies on USIO are pinning bets - traders use them when they expect USIO 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.
USIO thesis for this butterfly
The market-implied 1-standard-deviation range for USIO extends from approximately $2.59 on the downside to $2.93 on the upside. A USIO long call butterfly is a pinning play: it pays maximum at the middle strike if USIO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current USIO IV rank near 0.24% 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 USIO at 20.90%. As a Technology name, USIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USIO-specific events.
USIO 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. USIO positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move USIO alongside the broader basket even when USIO-specific fundamentals are unchanged. Always rebuild the position from current USIO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on USIO?
- A butterfly on USIO is the butterfly strategy applied to USIO (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 USIO stock at $2.76 on the most recent close, the strikes shown on this page are snapped to the nearest listed USIO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are USIO 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 USIO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 20.90%), 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 USIO butterfly?
- The breakeven for the USIO butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The USIO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on USIO?
- Butterflies on USIO are pinning bets - traders use them when they expect USIO 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 USIO implied volatility affect this butterfly?
- USIO ATM IV is at 20.90% with IV rank near 0.24%, 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.