ADCT Butterfly Strategy
ADCT (ADC Therapeutics S.A.), in the Healthcare sector, (Biotechnology industry), listed on NYSE.
ADC Therapeutics SA, a commercial-stage biotechnology company, develops antibody drug conjugates (ADC) for patients suffering from hematological malignancies and solid tumors. Its flagship product ZYNLONTA that is in Phase II clinical trial for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) and follicular lymphoma; Phase III clinical trial in combination with rituximab to treat relapsed or refractory DLBCL in second-line transplant-ineligible patients; and Phase I clinical trial for treatment of relapsed or refractory non-hodgkin lymphoma (NHL). The company is also developing camidanlumab tesirine, an ADC that has completed Phase I clinical trial to treat relapsed or refractory NHL; in Phase II clinical trial in relapsed or refractory hodgkin lymphoma; and in Phase Ib clinical trial for selected advanced solid tumors. In addition, it develops ADCT-602, which is in Phase Ia clinical trial for treatment of acute lymphoblastic leukemia; ADCT-601 and ADCT-901 that are in Phase Ia clinical trial for treatment of various solid tumors; and preclinical product candidates, including ADCT-701 and ADCT-901 for the treatment of solid tumors. It has a collaboration and license agreement with Genmab A/S, Bergenbio AS, Synaffix B.V., Mitsubishi Tanabe Pharma Corporation, Overland Pharmaceuticals, and MedImmune Limited. ADC Therapeutics SA was incorporated in 2011 and is headquartered in Epalinges, Switzerland.
ADCT (ADC Therapeutics S.A.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $442.6M, a beta of 1.84 versus the broader market, a 52-week range of 1.69-4.98, average daily share volume of 1.0M, a public-listing history dating back to 2020, approximately 263 full-time employees. These structural characteristics shape how ADCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.84 indicates ADCT 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 ADCT?
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 ADCT snapshot
As of May 15, 2026, spot at $3.27, ATM IV 22.90%, IV rank 0.91%, expected move 6.57%. The butterfly on ADCT 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 ADCT specifically: ADCT IV at 22.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a ADCT butterfly, with a market-implied 1-standard-deviation move of approximately 6.57% (roughly $0.21 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 ADCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADCT should anchor to the underlying notional of $3.27 per share and to the trader's directional view on ADCT stock.
ADCT butterfly setup
The ADCT 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 ADCT near $3.27, the first option leg uses a $3.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADCT 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 ADCT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.11 | N/A |
| Sell 2 | Call | $3.27 | N/A |
| Buy 1 | Call | $3.43 | N/A |
ADCT 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.
ADCT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ADCT. 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 ADCT
Butterflies on ADCT are pinning bets - traders use them when they expect ADCT 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.
ADCT thesis for this butterfly
The market-implied 1-standard-deviation range for ADCT extends from approximately $3.06 on the downside to $3.48 on the upside. A ADCT long call butterfly is a pinning play: it pays maximum at the middle strike if ADCT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ADCT IV rank near 0.91% 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 ADCT at 22.90%. As a Healthcare name, ADCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADCT-specific events.
ADCT 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. ADCT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADCT alongside the broader basket even when ADCT-specific fundamentals are unchanged. Always rebuild the position from current ADCT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ADCT?
- A butterfly on ADCT is the butterfly strategy applied to ADCT (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 ADCT stock trading near $3.27, the strikes shown on this page are snapped to the nearest listed ADCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ADCT 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 ADCT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.90%), 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 ADCT butterfly?
- The breakeven for the ADCT 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 ADCT market-implied 1-standard-deviation expected move is approximately 6.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ADCT?
- Butterflies on ADCT are pinning bets - traders use them when they expect ADCT 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 ADCT implied volatility affect this butterfly?
- ADCT ATM IV is at 22.90% with IV rank near 0.91%, 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.