ASMB Butterfly Strategy
ASMB (Assembly Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Assembly Biosciences, Inc., a clinical-stage biotechnology company, discovers and develops therapeutic candidates for the treatment of hepatitis B virus (HBV) infection in the United States. The company's lead product candidate is Vebicorvir, which as completed Phase 2 clinical trials to treat patients with chronic HBV infection. It is also developing ABI-H3733 that has completed Phase 1a clinical study, and ABI-4334, which is in pre-clinical trials for the treatment of HBV. The company has collaboration agreements with BeiGene, Ltd. and Arbutus Biopharma Corporation; and Antios Therapeutics, Inc. to evaluate a triple combination treatment in patients with chronic hepatitis B virus infection. It also has strategic license agreements with Indiana University Research and Technology Corporation; and Door Pharmaceuticals, LLC. The company was formerly known as Ventrus Biosciences, Inc. and changed its name to Assembly Biosciences, Inc. in June 2014.
ASMB (Assembly Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $504.1M, a beta of 1.09 versus the broader market, a 52-week range of 12.19-39.71, average daily share volume of 109K, a public-listing history dating back to 2010, approximately 73 full-time employees. These structural characteristics shape how ASMB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places ASMB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on ASMB?
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 ASMB snapshot
As of May 15, 2026, spot at $28.84, ATM IV 73.20%, IV rank 14.87%, expected move 20.99%. The butterfly on ASMB 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 ASMB specifically: ASMB IV at 73.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ASMB butterfly, with a market-implied 1-standard-deviation move of approximately 20.99% (roughly $6.05 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 ASMB expiries trade a higher absolute premium for lower per-day decay. Position sizing on ASMB should anchor to the underlying notional of $28.84 per share and to the trader's directional view on ASMB stock.
ASMB butterfly setup
The ASMB 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 ASMB near $28.84, the first option leg uses a $27.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ASMB 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 ASMB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $27.40 | N/A |
| Sell 2 | Call | $28.84 | N/A |
| Buy 1 | Call | $30.28 | N/A |
ASMB 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.
ASMB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ASMB. 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 ASMB
Butterflies on ASMB are pinning bets - traders use them when they expect ASMB 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.
ASMB thesis for this butterfly
The market-implied 1-standard-deviation range for ASMB extends from approximately $22.79 on the downside to $34.89 on the upside. A ASMB long call butterfly is a pinning play: it pays maximum at the middle strike if ASMB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ASMB IV rank near 14.87% 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 ASMB at 73.20%. As a Healthcare name, ASMB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ASMB-specific events.
ASMB 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. ASMB positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ASMB alongside the broader basket even when ASMB-specific fundamentals are unchanged. Always rebuild the position from current ASMB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ASMB?
- A butterfly on ASMB is the butterfly strategy applied to ASMB (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 ASMB stock trading near $28.84, the strikes shown on this page are snapped to the nearest listed ASMB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ASMB 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 ASMB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.20%), 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 ASMB butterfly?
- The breakeven for the ASMB 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 ASMB market-implied 1-standard-deviation expected move is approximately 20.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ASMB?
- Butterflies on ASMB are pinning bets - traders use them when they expect ASMB 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 ASMB implied volatility affect this butterfly?
- ASMB ATM IV is at 73.20% with IV rank near 14.87%, 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.