ACOG Butterfly Strategy
ACOG (Alpha Cognition Inc), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Alpha Cognition Inc., a biopharmaceutical company, engages in the development of treatments for patients suffering from neurodegenerative diseases in the United States and Canada. The company's commercial development program includes ZUNVEYL oral tablet formulation for treating Alzheimer's disease. Its pre-clinical development programs comprise ZUNVEYL in combination with memantine for the treatment of moderate-to-severe Alzheimer's disease; ALPHA-1062 sublingual formulation for acute pancreatitis; ALPHA-1062 intranasal formulation for the treatment of cognitive impairment with mild traumatic brain injury; and ALPHA-0602, ALPHA-0702, and ALPHA-0802 programs for the treatment of neurodegenerative diseases, including amyotrophic lateral sclerosis disease and spinal muscular atrophy. The company was founded in 2000 and is headquartered in Vancouver, Canada.
ACOG (Alpha Cognition Inc) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $139.0M, a beta of 2.23 versus the broader market, a 52-week range of 4.5-10, average daily share volume of 63K, a public-listing history dating back to 2024, approximately 71 full-time employees. These structural characteristics shape how ACOG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.23 indicates ACOG 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 ACOG?
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.
ACOG snapshot
As of August 14, 2026, spot at $8.77, ATM IV 187.40%, expected move 53.73%. The butterfly on ACOG 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 ACOG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ACOG is inferred from ATM IV at 187.40% alone, with a market-implied 1-standard-deviation move of approximately 53.73% (roughly $4.71 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 ACOG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACOG should anchor to the underlying notional of $8.77 per share and to the trader's directional view on ACOG stock.
ACOG butterfly setup
The ACOG 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 ACOG at $8.77 on that close, the first option leg uses a $8.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACOG 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 ACOG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.33 | N/A |
| Sell 2 | Call | $8.77 | N/A |
| Buy 1 | Call | $9.21 | N/A |
ACOG 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.
ACOG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ACOG. 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 ACOG
Butterflies on ACOG are pinning bets - traders use them when they expect ACOG 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.
ACOG thesis for this butterfly
The market-implied 1-standard-deviation range for ACOG extends from approximately $4.06 on the downside to $13.48 on the upside. A ACOG long call butterfly is a pinning play: it pays maximum at the middle strike if ACOG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Healthcare name, ACOG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACOG-specific events.
ACOG 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. ACOG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACOG alongside the broader basket even when ACOG-specific fundamentals are unchanged. Always rebuild the position from current ACOG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ACOG?
- A butterfly on ACOG is the butterfly strategy applied to ACOG (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 ACOG stock at $8.77 on the most recent close, the strikes shown on this page are snapped to the nearest listed ACOG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ACOG 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 ACOG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 187.40%), 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 ACOG butterfly?
- The breakeven for the ACOG 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 ACOG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 53.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ACOG?
- Butterflies on ACOG are pinning bets - traders use them when they expect ACOG 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 ACOG implied volatility affect this butterfly?
- Current ACOG ATM IV is 187.40%; IV rank context is unavailable in the current snapshot.