WBI Butterfly Strategy
WBI (WaterBridge Infrastructure LLC), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
WaterBridge Infrastructure is a specialist in managing water resources, primarily serving companies involved in upstream oil and gas exploration and production. The firm operates a robust network of water infrastructure, with its primary footprint in the Delaware Basin, alongside further facilities in the Eagle Ford and Arkoma shale plays. Its core business involves the complete lifecycle management of produced water, including its gathering, transport, reclamation, and disposal, all engineered to support the efficient functioning of the energy sector.
WBI (WaterBridge Infrastructure LLC) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $1.49B, a trailing P/E of 89.75, a beta of 0.20 versus the broader market, a 52-week range of 18.64-36.89, average daily share volume of 1.0M, a public-listing history dating back to 2025, approximately 540 full-time employees. These structural characteristics shape how WBI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.20 indicates WBI 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 89.75 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. WBI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on WBI?
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.
WBI snapshot
As of August 14, 2026, spot at $31.66, ATM IV 44.30%, IV rank 8.17%, expected move 12.70%. The butterfly on WBI 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 WBI specifically: WBI IV at 44.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a WBI butterfly, with a market-implied 1-standard-deviation move of approximately 12.70% (roughly $4.02 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 WBI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WBI should anchor to the underlying notional of $31.66 per share and to the trader's directional view on WBI stock.
WBI butterfly setup
The WBI 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 WBI at $31.66 on that close, the first option leg uses a $30.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WBI 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 WBI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $30.08 | N/A |
| Sell 2 | Call | $31.66 | N/A |
| Buy 1 | Call | $33.24 | N/A |
WBI 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.
WBI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WBI. 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 WBI
Butterflies on WBI are pinning bets - traders use them when they expect WBI 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.
WBI thesis for this butterfly
The market-implied 1-standard-deviation range for WBI extends from approximately $27.64 on the downside to $35.68 on the upside. A WBI long call butterfly is a pinning play: it pays maximum at the middle strike if WBI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WBI IV rank near 8.17% 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 WBI at 44.30%. As a Energy name, WBI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WBI-specific events.
WBI 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. WBI positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WBI alongside the broader basket even when WBI-specific fundamentals are unchanged. Always rebuild the position from current WBI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WBI?
- A butterfly on WBI is the butterfly strategy applied to WBI (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 WBI stock at $31.66 on the most recent close, the strikes shown on this page are snapped to the nearest listed WBI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WBI 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 WBI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.30%), 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 WBI butterfly?
- The breakeven for the WBI 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 WBI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WBI?
- Butterflies on WBI are pinning bets - traders use them when they expect WBI 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 WBI implied volatility affect this butterfly?
- WBI ATM IV is at 44.30% with IV rank near 8.17%, 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.