How are ADMA 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 ADMA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.20%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ADMA butterfly?

The breakeven for the ADMA butterfly priced on this page is roughly $8.50 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ADMA implied volatility affect this butterfly?

ADMA ATM IV is at 60.20% with IV rank near 13.13%, 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.

ADMA Butterfly Strategy

ADMA (ADMA Biologics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. It offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. The company also develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, sales agents, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.

ADMA (ADMA Biologics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.97B, a trailing P/E of 12.14, a beta of 0.82 versus the broader market, a 52-week range of 7.21-22.37, average daily share volume of 7.3M, a public-listing history dating back to 2013, approximately 685 full-time employees. These structural characteristics shape how ADMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places ADMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on ADMA?

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 ADMA snapshot

As of May 15, 2026, spot at $8.27, ATM IV 60.20%, IV rank 13.13%, expected move 17.26%. The butterfly on ADMA 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 ADMA specifically: ADMA IV at 60.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ADMA butterfly, with a market-implied 1-standard-deviation move of approximately 17.26% (roughly $1.43 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 ADMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADMA should anchor to the underlying notional of $8.27 per share and to the trader's directional view on ADMA stock.

ADMA butterfly setup

The ADMA 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 ADMA near $8.27, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADMA 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 ADMA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.00	$0.80
Sell 2	Call	$8.00	$0.80
Buy 1	Call	$9.00	$0.30

ADMA butterfly risk and reward

Net Premium / Debit: +$50.00
Max Profit (per contract): $50.00
Max Loss (per contract): -$50.00
Breakeven(s): $8.50
Risk / Reward Ratio: 1.000

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.

ADMA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ADMA. 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	-99.9%	+$50.00
$1.84	-77.8%	+$50.00
$3.66	-55.7%	+$50.00
$5.49	-33.6%	+$50.00
$7.32	-11.5%	+$50.00
$9.15	+10.6%	-$50.00
$10.97	+32.7%	-$50.00
$12.80	+54.8%	-$50.00
$14.63	+76.9%	-$50.00
$16.46	+99.0%	-$50.00

When traders use butterfly on ADMA

Butterflies on ADMA are pinning bets - traders use them when they expect ADMA 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.

ADMA thesis for this butterfly

The market-implied 1-standard-deviation range for ADMA extends from approximately $6.84 on the downside to $9.70 on the upside. A ADMA long call butterfly is a pinning play: it pays maximum at the middle strike if ADMA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ADMA IV rank near 13.13% 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 ADMA at 60.20%. As a Healthcare name, ADMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADMA-specific events.

ADMA 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. ADMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADMA alongside the broader basket even when ADMA-specific fundamentals are unchanged. Always rebuild the position from current ADMA chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on ADMA?: A butterfly on ADMA is the butterfly strategy applied to ADMA (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 ADMA stock trading near $8.27, the strikes shown on this page are snapped to the nearest listed ADMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ADMA 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 ADMA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.20%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ADMA butterfly?: The breakeven for the ADMA butterfly priced on this page is roughly $8.50 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ADMA?: Butterflies on ADMA are pinning bets - traders use them when they expect ADMA 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 ADMA implied volatility affect this butterfly?: ADMA ATM IV is at 60.20% with IV rank near 13.13%, 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.