ALT Butterfly Strategy
ALT (Altimmune, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Altimmune, Inc. is a clinical-stage biopharmaceutical company focused on pioneering treatments for obesity and various liver diseases. Its primary investigational drug, pemvidutide (proposed INN, previously known as ALT-801), operates as a GLP-1/glucagon dual receptor agonist. This compound is currently undergoing Phase 1b clinical trials, exploring its efficacy in treating both obesity and non-alcoholic steatohepatitis (NASH). Additionally, Altimmune is advancing HepTcell, an immunotherapeutic candidate, through Phase 2 clinical trials. This therapy is designed for individuals suffering from chronic hepatitis B virus infection. The enterprise, initially named Vaxin Inc., officially adopted the Altimmune, Inc. moniker in September 2015.
ALT (Altimmune, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $571.8M, a beta of 0.17 versus the broader market, a 52-week range of 2.56-6.44, average daily share volume of 4.3M, a public-listing history dating back to 2017, approximately 57 full-time employees. These structural characteristics shape how ALT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.17 indicates ALT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ALT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ALT?
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.
ALT snapshot
As of August 14, 2026, spot at $2.92, ATM IV 152.62%, IV rank 35.97%, expected move 19.41%. The butterfly on ALT 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 28-day expiry.
Why this butterfly structure on ALT specifically: ALT IV at 152.62% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 19.41% (roughly $0.57 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALT should anchor to the underlying notional of $2.92 per share and to the trader's directional view on ALT stock.
ALT butterfly setup
The ALT 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 ALT at $2.92 on that close, the first option leg uses a $2.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALT chain at a 28-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 ALT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.77 | N/A |
| Sell 2 | Call | $2.92 | N/A |
| Buy 1 | Call | $3.07 | N/A |
ALT 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.
ALT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ALT. 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 ALT
Butterflies on ALT are pinning bets - traders use them when they expect ALT 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.
ALT thesis for this butterfly
The market-implied 1-standard-deviation range for ALT extends from approximately $2.35 on the downside to $3.49 on the upside. A ALT long call butterfly is a pinning play: it pays maximum at the middle strike if ALT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ALT IV rank near 35.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ALT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ALT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALT-specific events.
ALT 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. ALT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALT alongside the broader basket even when ALT-specific fundamentals are unchanged. Always rebuild the position from current ALT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ALT?
- A butterfly on ALT is the butterfly strategy applied to ALT (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 ALT stock at $2.92 on the most recent close, the strikes shown on this page are snapped to the nearest listed ALT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALT 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 ALT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 152.62%), 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 ALT butterfly?
- The breakeven for the ALT 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 ALT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ALT?
- Butterflies on ALT are pinning bets - traders use them when they expect ALT 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 ALT implied volatility affect this butterfly?
- ALT ATM IV is at 152.62% with IV rank near 35.97%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.