WOLF Butterfly Strategy
WOLF (Wolfspeed Inc.), in the Technology sector, (Semiconductors industry), listed on NYSE.
Wolfspeed, Inc. is an innovator of wide bandgap semiconductors, focused on silicon carbide and gallium nitride (GaN) materials and devices for power and radiofrequency (RF) applications. Its product families include silicon carbide and GaN materials, power devices and RF devices, and its products are targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense. The company was founded by Calvin H. Carter Jr., John W. Palmour, F. Neal Hunter, Eric Hunter, and John Edmond in 1987 and is headquartered in Durham, NC.
WOLF (Wolfspeed Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.65B, a beta of 8.63 versus the broader market, a 52-week range of 8.05-80.82, average daily share volume of 6.4M, a public-listing history dating back to 2025, approximately 3K full-time employees. These structural characteristics shape how WOLF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 8.63 indicates WOLF has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on WOLF?
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.
WOLF snapshot
As of August 14, 2026, spot at $31.57, ATM IV 121.64%, IV rank 18.87%, expected move 34.87%. The butterfly on WOLF below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this butterfly structure on WOLF specifically: WOLF IV at 121.64% is on the cheap side of its 1-year range, which favors premium-buying structures like a WOLF butterfly, with a market-implied 1-standard-deviation move of approximately 34.87% (roughly $11.01 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WOLF expiries trade a higher absolute premium for lower per-day decay. Position sizing on WOLF should anchor to the underlying notional of $31.57 per share and to the trader's directional view on WOLF stock.
WOLF butterfly setup
The WOLF butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WOLF at $31.57 on that close, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WOLF chain at a 28-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 WOLF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $30.00 | $4.78 |
| Sell 2 | Call | $32.00 | $3.85 |
| Buy 1 | Call | $33.00 | $3.53 |
WOLF butterfly risk and reward
- Net Premium / Debit
- -$60.00
- Max Profit (per contract)
- $134.91
- Max Loss (per contract)
- -$60.00
- Breakeven(s)
- $30.60
- Risk / Reward Ratio
- 2.249
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.
WOLF butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WOLF. 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% | -$60.00 |
| $6.99 | -77.9% | -$60.00 |
| $13.97 | -55.8% | -$60.00 |
| $20.95 | -33.6% | -$60.00 |
| $27.93 | -11.5% | -$60.00 |
| $34.91 | +10.6% | +$40.00 |
| $41.89 | +32.7% | +$40.00 |
| $48.86 | +54.8% | +$40.00 |
| $55.84 | +76.9% | +$40.00 |
| $62.82 | +99.0% | +$40.00 |
When traders use butterfly on WOLF
Butterflies on WOLF are pinning bets - traders use them when they expect WOLF 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.
WOLF thesis for this butterfly
The market-implied 1-standard-deviation range for WOLF extends from approximately $20.56 on the downside to $42.58 on the upside. A WOLF long call butterfly is a pinning play: it pays maximum at the middle strike if WOLF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WOLF IV rank near 18.87% 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 WOLF at 121.64%. As a Technology name, WOLF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WOLF-specific events.
WOLF 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. WOLF positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WOLF alongside the broader basket even when WOLF-specific fundamentals are unchanged. Always rebuild the position from current WOLF chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WOLF?
- A butterfly on WOLF is the butterfly strategy applied to WOLF (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 WOLF stock at $31.57 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WOLF chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WOLF 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 WOLF butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 121.64%), the computed maximum profit is $134.91 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WOLF butterfly?
- The breakeven for the WOLF butterfly priced on this page is roughly $30.60 at expiration, derived from the August 14, 2026 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 WOLF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 34.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WOLF?
- Butterflies on WOLF are pinning bets - traders use them when they expect WOLF 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 WOLF implied volatility affect this butterfly?
- WOLF ATM IV is at 121.64% with IV rank near 18.87%, 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.