VTOL Butterfly Strategy
VTOL (Bristow Group Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Bristow Group Inc. provides vertical flight solutions to offshore energy companies and government agencies in the United Kingdom, Norway, the United States, Nigeria, and internationally. It operates through three segments: Offshore Energy Services, Government Services, and Other Services. The company offers various aviation services comprising personnel transportation, search and rescue (SAR), medevac, fixed wing transportation, unmanned systems, and ad-hoc helicopter services. It also operates specialized helicopters, as well as provides trained personnel. In addition, the company is involved in dry leasing of aircraft to third-party operators; and sales of parts. Further, it provides equipment or additional services, such as logistical and maintenance support, training services, and flight and maintenance crews; and regular passenger transport and charter services.
VTOL (Bristow Group Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $1.36B, a trailing P/E of 13.05, a beta of 1.20 versus the broader market, a 52-week range of 35.03-50.38, average daily share volume of 234K, a public-listing history dating back to 2013, approximately 4K full-time employees. These structural characteristics shape how VTOL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places VTOL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VTOL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on VTOL?
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.
VTOL snapshot
As of August 14, 2026, spot at $46.52, ATM IV 20.30%, IV rank 0.44%, expected move 5.82%. The butterfly on VTOL 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 VTOL specifically: VTOL IV at 20.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a VTOL butterfly, with a market-implied 1-standard-deviation move of approximately 5.82% (roughly $2.71 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 VTOL expiries trade a higher absolute premium for lower per-day decay. Position sizing on VTOL should anchor to the underlying notional of $46.52 per share and to the trader's directional view on VTOL stock.
VTOL butterfly setup
The VTOL 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 VTOL at $46.52 on that close, the first option leg uses a $44.19 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VTOL 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 VTOL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $44.19 | N/A |
| Sell 2 | Call | $46.52 | N/A |
| Buy 1 | Call | $48.85 | N/A |
VTOL 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.
VTOL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VTOL. 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 VTOL
Butterflies on VTOL are pinning bets - traders use them when they expect VTOL 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.
VTOL thesis for this butterfly
The market-implied 1-standard-deviation range for VTOL extends from approximately $43.81 on the downside to $49.23 on the upside. A VTOL long call butterfly is a pinning play: it pays maximum at the middle strike if VTOL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VTOL IV rank near 0.44% 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 VTOL at 20.30%. As a Energy name, VTOL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VTOL-specific events.
VTOL 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. VTOL positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VTOL alongside the broader basket even when VTOL-specific fundamentals are unchanged. Always rebuild the position from current VTOL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VTOL?
- A butterfly on VTOL is the butterfly strategy applied to VTOL (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 VTOL stock at $46.52 on the most recent close, the strikes shown on this page are snapped to the nearest listed VTOL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are VTOL 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 VTOL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 20.30%), 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 VTOL butterfly?
- The breakeven for the VTOL 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 VTOL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VTOL?
- Butterflies on VTOL are pinning bets - traders use them when they expect VTOL 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 VTOL implied volatility affect this butterfly?
- VTOL ATM IV is at 20.30% with IV rank near 0.44%, 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.