VSTS Butterfly Strategy
VSTS (Vestis Corporation), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.
Founded in Roswell, Georgia, in 1936, Vestis Corporation specializes in offering uniform rental and various workplace supply services across both the United States and Canada. The company's product line includes a wide array of uniform choices, from standard shirts, pants, and outerwear to specialized garments like gowns, scrubs, high-visibility clothing, particulate-free attire, and flame-resistant options, alongside shoes and other accessories. Additionally, Vestis provides crucial workplace provisions such as managed restroom supply services, first-aid and safety items, floor mats, towels, and linens. Their services cater to a broad spectrum of industries, including manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom operations.
VSTS (Vestis Corporation) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $1.76B, a beta of 1.14 versus the broader market, a 52-week range of 3.98-16.9, average daily share volume of 1.5M, a public-listing history dating back to 2023, approximately 18K full-time employees. These structural characteristics shape how VSTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.14 places VSTS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VSTS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on VSTS?
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.
VSTS snapshot
As of August 14, 2026, spot at $13.42, ATM IV 56.80%, IV rank 10.89%, expected move 16.28%. The butterfly on VSTS 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 VSTS specifically: VSTS IV at 56.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a VSTS butterfly, with a market-implied 1-standard-deviation move of approximately 16.28% (roughly $2.19 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 VSTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on VSTS should anchor to the underlying notional of $13.42 per share and to the trader's directional view on VSTS stock.
VSTS butterfly setup
The VSTS 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 VSTS at $13.42 on that close, the first option leg uses a $12.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VSTS 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 VSTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.75 | N/A |
| Sell 2 | Call | $13.42 | N/A |
| Buy 1 | Call | $14.09 | N/A |
VSTS 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.
VSTS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VSTS. 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 VSTS
Butterflies on VSTS are pinning bets - traders use them when they expect VSTS 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.
VSTS thesis for this butterfly
The market-implied 1-standard-deviation range for VSTS extends from approximately $11.23 on the downside to $15.61 on the upside. A VSTS long call butterfly is a pinning play: it pays maximum at the middle strike if VSTS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VSTS IV rank near 10.89% 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 VSTS at 56.80%. As a Industrials name, VSTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VSTS-specific events.
VSTS 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. VSTS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VSTS alongside the broader basket even when VSTS-specific fundamentals are unchanged. Always rebuild the position from current VSTS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VSTS?
- A butterfly on VSTS is the butterfly strategy applied to VSTS (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 VSTS stock at $13.42 on the most recent close, the strikes shown on this page are snapped to the nearest listed VSTS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are VSTS 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 VSTS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.80%), 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 VSTS butterfly?
- The breakeven for the VSTS 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 VSTS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VSTS?
- Butterflies on VSTS are pinning bets - traders use them when they expect VSTS 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 VSTS implied volatility affect this butterfly?
- VSTS ATM IV is at 56.80% with IV rank near 10.89%, 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.