WFRD Butterfly Strategy
WFRD (Weatherford International plc), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates in two segments, Western Hemisphere and Eastern Hemisphere. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing, cementing, and coiled-tubing intervention; and drill stem test tools, surface well testing, and multiphase flow measurement services. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high-temperature and high-pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed-loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open hole and cased-hole logging services; and intervention and remediation services. Further, the company provides tubular handling, management, and connection services; and re-entry, fishing, wellbore cleaning, and well abandonment services, as well as patented bottom hole, tubularhandling equipment, pressure-control equipment, and drill pipe and collars.
WFRD (Weatherford International plc) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $7.85B, a trailing P/E of 16.94, a beta of 0.92 versus the broader market, a 52-week range of 42.75-112.31, average daily share volume of 1.4M, a public-listing history dating back to 2021, approximately 18K full-time employees. These structural characteristics shape how WFRD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places WFRD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WFRD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on WFRD?
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 WFRD snapshot
As of May 15, 2026, spot at $108.68, ATM IV 42.90%, IV rank 24.49%, expected move 12.30%. The butterfly on WFRD 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 WFRD specifically: WFRD IV at 42.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a WFRD butterfly, with a market-implied 1-standard-deviation move of approximately 12.30% (roughly $13.37 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 WFRD expiries trade a higher absolute premium for lower per-day decay. Position sizing on WFRD should anchor to the underlying notional of $108.68 per share and to the trader's directional view on WFRD stock.
WFRD butterfly setup
The WFRD 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 WFRD near $108.68, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WFRD 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 WFRD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $105.00 | $8.05 |
| Sell 2 | Call | $110.00 | $5.15 |
| Buy 1 | Call | $115.00 | $3.25 |
WFRD butterfly risk and reward
- Net Premium / Debit
- -$100.00
- Max Profit (per contract)
- $367.67
- Max Loss (per contract)
- -$100.00
- Breakeven(s)
- $106.00, $114.00
- Risk / Reward Ratio
- 3.677
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.
WFRD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WFRD. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$100.00 |
| $24.04 | -77.9% | -$100.00 |
| $48.07 | -55.8% | -$100.00 |
| $72.10 | -33.7% | -$100.00 |
| $96.12 | -11.6% | -$100.00 |
| $120.15 | +10.6% | -$100.00 |
| $144.18 | +32.7% | -$100.00 |
| $168.21 | +54.8% | -$100.00 |
| $192.24 | +76.9% | -$100.00 |
| $216.27 | +99.0% | -$100.00 |
When traders use butterfly on WFRD
Butterflies on WFRD are pinning bets - traders use them when they expect WFRD 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.
WFRD thesis for this butterfly
The market-implied 1-standard-deviation range for WFRD extends from approximately $95.31 on the downside to $122.05 on the upside. A WFRD long call butterfly is a pinning play: it pays maximum at the middle strike if WFRD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WFRD IV rank near 24.49% 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 WFRD at 42.90%. As a Energy name, WFRD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WFRD-specific events.
WFRD 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. WFRD positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WFRD alongside the broader basket even when WFRD-specific fundamentals are unchanged. Always rebuild the position from current WFRD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WFRD?
- A butterfly on WFRD is the butterfly strategy applied to WFRD (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 WFRD stock trading near $108.68, the strikes shown on this page are snapped to the nearest listed WFRD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WFRD 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 WFRD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $367.67 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WFRD butterfly?
- The breakeven for the WFRD butterfly priced on this page is roughly $106.00 and $114.00 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 WFRD market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WFRD?
- Butterflies on WFRD are pinning bets - traders use them when they expect WFRD 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 WFRD implied volatility affect this butterfly?
- WFRD ATM IV is at 42.90% with IV rank near 24.49%, 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.