WPRT Butterfly Strategy
WPRT (Westport Fuel Systems Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Founded in 1995 and based in Vancouver, Canada, Westport Fuel Systems Inc. (formerly Westport Innovations Inc. until its name change in June 2016) is a global innovator in the engineering, production, and delivery of alternative fuel systems and their constituent components for various transportation applications. The company structures its operations around two key segments: Original Equipment Manufacturer (OEM) and Independent Aftermarket. Its comprehensive offerings support a broad spectrum of alternative fuels, including liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas (RNG), and hydrogen. Beyond complete fuel systems and individual parts, Westport also provides solutions for the independent aftermarket, light and heavy-duty OEM markets, electronics, hydrogen systems, and advanced fuel storage. A cornerstone of its technology is the Westport High Pressure Direct Injection 2.0 (HPDI 2.0), an integrated fuel system that allows diesel engines to run predominantly on natural gas, delivering power, torque, and fuel efficiency comparable to traditional compression ignition diesel engines, all while significantly reducing greenhouse gas emissions. These technologies and services are deployed across a diverse range of vehicles, from passenger cars and light-duty trucks to medium and heavy-duty trucks, alongside specialized cryogenic and hydrogen applications.
WPRT (Westport Fuel Systems Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $46.9M, a beta of 2.22 versus the broader market, a 52-week range of 1.54-4.15, average daily share volume of 1.0M, a public-listing history dating back to 2008, approximately 2K full-time employees. These structural characteristics shape how WPRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.22 indicates WPRT 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 WPRT?
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 WPRT snapshot
As of June 30, 2026, spot at $2.32, ATM IV 168.60%, IV rank 34.16%, expected move 48.34%. The butterfly on WPRT 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 17-day expiry.
Why this butterfly structure on WPRT specifically: WPRT IV at 168.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 48.34% (roughly $1.12 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WPRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on WPRT should anchor to the underlying notional of $2.32 per share and to the trader's directional view on WPRT stock.
WPRT butterfly setup
The WPRT 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 WPRT near $2.32, the first option leg uses a $2.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WPRT chain at a 17-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 WPRT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.20 | N/A |
| Sell 2 | Call | $2.32 | N/A |
| Buy 1 | Call | $2.44 | N/A |
WPRT 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.
WPRT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WPRT. 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 WPRT
Butterflies on WPRT are pinning bets - traders use them when they expect WPRT 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.
WPRT thesis for this butterfly
The market-implied 1-standard-deviation range for WPRT extends from approximately $1.20 on the downside to $3.44 on the upside. A WPRT long call butterfly is a pinning play: it pays maximum at the middle strike if WPRT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WPRT IV rank near 34.16% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on WPRT should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, WPRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WPRT-specific events.
WPRT 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. WPRT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WPRT alongside the broader basket even when WPRT-specific fundamentals are unchanged. Always rebuild the position from current WPRT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WPRT?
- A butterfly on WPRT is the butterfly strategy applied to WPRT (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 WPRT stock trading near $2.32, the strikes shown on this page are snapped to the nearest listed WPRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WPRT 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 WPRT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 168.60%), 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 WPRT butterfly?
- The breakeven for the WPRT butterfly priced on this page is no defined breakeven on the modeled curve 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 WPRT market-implied 1-standard-deviation expected move is approximately 48.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WPRT?
- Butterflies on WPRT are pinning bets - traders use them when they expect WPRT 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 WPRT implied volatility affect this butterfly?
- WPRT ATM IV is at 168.60% with IV rank near 34.16%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.