AGIO Butterfly Strategy
AGIO (Agios Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Agios Pharmaceuticals, Inc. is a biopharmaceutical firm dedicated to the research and advancement of new treatments, specifically targeting cellular metabolism and related biological fields. The company's offerings include PYRUKYND (mitapivat), a medication designed to activate both wild-type and various mutated pyruvate kinase (PK) enzymes, used in the management of hemolytic anemias. Additionally, Agios is developing AG-946, which is currently undergoing Phase I clinical studies for treating hemolytic anemias and other diseases. Established in 2007, the company's main office is located in Cambridge, Massachusetts.
AGIO (Agios Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.00B, a beta of 0.59 versus the broader market, a 52-week range of 22.24-46, average daily share volume of 1.2M, a public-listing history dating back to 2013, approximately 540 full-time employees. These structural characteristics shape how AGIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates AGIO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on AGIO?
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.
AGIO snapshot
As of August 14, 2026, spot at $33.56, ATM IV 53.60%, IV rank 10.18%, expected move 15.37%. The butterfly on AGIO 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 AGIO specifically: AGIO IV at 53.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AGIO butterfly, with a market-implied 1-standard-deviation move of approximately 15.37% (roughly $5.16 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 AGIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGIO should anchor to the underlying notional of $33.56 per share and to the trader's directional view on AGIO stock.
AGIO butterfly setup
The AGIO 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 AGIO at $33.56 on that close, the first option leg uses a $31.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGIO 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 AGIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.88 | N/A |
| Sell 2 | Call | $33.56 | N/A |
| Buy 1 | Call | $35.24 | N/A |
AGIO 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.
AGIO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AGIO. 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 AGIO
Butterflies on AGIO are pinning bets - traders use them when they expect AGIO 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.
AGIO thesis for this butterfly
The market-implied 1-standard-deviation range for AGIO extends from approximately $28.40 on the downside to $38.72 on the upside. A AGIO long call butterfly is a pinning play: it pays maximum at the middle strike if AGIO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AGIO IV rank near 10.18% 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 AGIO at 53.60%. As a Healthcare name, AGIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGIO-specific events.
AGIO 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. AGIO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGIO alongside the broader basket even when AGIO-specific fundamentals are unchanged. Always rebuild the position from current AGIO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AGIO?
- A butterfly on AGIO is the butterfly strategy applied to AGIO (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 AGIO stock at $33.56 on the most recent close, the strikes shown on this page are snapped to the nearest listed AGIO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AGIO 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 AGIO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.60%), 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 AGIO butterfly?
- The breakeven for the AGIO 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 AGIO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AGIO?
- Butterflies on AGIO are pinning bets - traders use them when they expect AGIO 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 AGIO implied volatility affect this butterfly?
- AGIO ATM IV is at 53.60% with IV rank near 10.18%, 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.