VOC Butterfly Strategy
VOC (VOC Energy Trust), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. As of December 31, 2021, the company had proved reserves of approximately 2.9 million barrels of oil equivalent (MMBoe) attributable to the portion of the Kansas underlying properties; and approximately 5.4 MMBoe attributable to the Texas underlying properties. VOC Energy Trust was incorporated in 2010 and is based in Houston, Texas.
VOC (VOC Energy Trust) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $52.0M, a trailing P/E of 8.74, a beta of 0.14 versus the broader market, a 52-week range of 2.6-3.84, average daily share volume of 144K, a public-listing history dating back to 2011. These structural characteristics shape how VOC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.14 indicates VOC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.74 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. VOC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on VOC?
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 VOC snapshot
As of May 15, 2026, spot at $3.28, ATM IV 175.20%, IV rank 58.42%, expected move 50.23%. The butterfly on VOC 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 VOC specifically: VOC IV at 175.20% 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 50.23% (roughly $1.65 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 VOC expiries trade a higher absolute premium for lower per-day decay. Position sizing on VOC should anchor to the underlying notional of $3.28 per share and to the trader's directional view on VOC stock.
VOC butterfly setup
The VOC 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 VOC near $3.28, the first option leg uses a $3.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VOC 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 VOC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.12 | N/A |
| Sell 2 | Call | $3.28 | N/A |
| Buy 1 | Call | $3.44 | N/A |
VOC 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.
VOC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VOC. 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 VOC
Butterflies on VOC are pinning bets - traders use them when they expect VOC 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.
VOC thesis for this butterfly
The market-implied 1-standard-deviation range for VOC extends from approximately $1.63 on the downside to $4.93 on the upside. A VOC long call butterfly is a pinning play: it pays maximum at the middle strike if VOC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VOC IV rank near 58.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on VOC should anchor more to the directional view and the expected-move geometry. As a Energy name, VOC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VOC-specific events.
VOC 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. VOC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VOC alongside the broader basket even when VOC-specific fundamentals are unchanged. Always rebuild the position from current VOC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VOC?
- A butterfly on VOC is the butterfly strategy applied to VOC (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 VOC stock trading near $3.28, the strikes shown on this page are snapped to the nearest listed VOC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VOC 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 VOC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 175.20%), 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 VOC butterfly?
- The breakeven for the VOC 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 VOC market-implied 1-standard-deviation expected move is approximately 50.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VOC?
- Butterflies on VOC are pinning bets - traders use them when they expect VOC 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 VOC implied volatility affect this butterfly?
- VOC ATM IV is at 175.20% with IV rank near 58.42%, 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.