ACET Butterfly Strategy
ACET (Adicet Bio, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Adicet Bio, Inc., a biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for cancer and other diseases. The company offers gamma delta T cells engineered with chimeric antigen receptors and T cell receptor-like antibodies to enhance selective tumor targeting, facilitate innate and adaptive anti-tumor immune response, and enhance persistence for durable activity in patients. Its lead product in pipeline includes ADI-001, which is in Phase I clinical study for the treatment of non-Hodgkin's lymphoma. The company also engages in the development of ADI-002, which is undergoing preclinical studies for the treatment of various solid tumors. Adicet Bio, Inc. is based in Boston, Massachusetts.
ACET (Adicet Bio, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $77.4M, a beta of 1.51 versus the broader market, a 52-week range of 6.01-17.44, average daily share volume of 127K, a public-listing history dating back to 2018, approximately 152 full-time employees. These structural characteristics shape how ACET stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.51 indicates ACET 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 ACET?
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 ACET snapshot
As of May 15, 2026, spot at $7.68, ATM IV 155.40%, IV rank 28.40%, expected move 44.55%. The butterfly on ACET 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 ACET specifically: ACET IV at 155.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a ACET butterfly, with a market-implied 1-standard-deviation move of approximately 44.55% (roughly $3.42 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 ACET expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACET should anchor to the underlying notional of $7.68 per share and to the trader's directional view on ACET stock.
ACET butterfly setup
The ACET 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 ACET near $7.68, the first option leg uses a $7.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACET 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 ACET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.30 | N/A |
| Sell 2 | Call | $7.68 | N/A |
| Buy 1 | Call | $8.06 | N/A |
ACET 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.
ACET butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ACET. 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 ACET
Butterflies on ACET are pinning bets - traders use them when they expect ACET 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.
ACET thesis for this butterfly
The market-implied 1-standard-deviation range for ACET extends from approximately $4.26 on the downside to $11.10 on the upside. A ACET long call butterfly is a pinning play: it pays maximum at the middle strike if ACET settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ACET IV rank near 28.40% 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 ACET at 155.40%. As a Healthcare name, ACET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACET-specific events.
ACET 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. ACET positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACET alongside the broader basket even when ACET-specific fundamentals are unchanged. Always rebuild the position from current ACET chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ACET?
- A butterfly on ACET is the butterfly strategy applied to ACET (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 ACET stock trading near $7.68, the strikes shown on this page are snapped to the nearest listed ACET chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACET 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 ACET butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 155.40%), 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 ACET butterfly?
- The breakeven for the ACET 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 ACET market-implied 1-standard-deviation expected move is approximately 44.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ACET?
- Butterflies on ACET are pinning bets - traders use them when they expect ACET 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 ACET implied volatility affect this butterfly?
- ACET ATM IV is at 155.40% with IV rank near 28.40%, 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.