ATRC Butterfly Strategy
ATRC (AtriCure, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
AtriCure, Inc. develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems, and intercostal nerves to medical centers in the United States, Europe, Asia, and internationally. The company offers Isolator Synergy Clamps, a single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and the Coolrail device, which enable users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Guided Coagulation System, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure compatible with a range of anatomical shapes. In addition, the company sells Lumitip Dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.
ATRC (AtriCure, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $1.35B, a beta of 1.28 versus the broader market, a 52-week range of 25.52-43.18, average daily share volume of 744K, a public-listing history dating back to 2005, approximately 1K full-time employees. These structural characteristics shape how ATRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places ATRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on ATRC?
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 ATRC snapshot
As of May 15, 2026, spot at $28.26, ATM IV 84.00%, IV rank 11.08%, expected move 24.08%. The butterfly on ATRC 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 ATRC specifically: ATRC IV at 84.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ATRC butterfly, with a market-implied 1-standard-deviation move of approximately 24.08% (roughly $6.81 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 ATRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ATRC should anchor to the underlying notional of $28.26 per share and to the trader's directional view on ATRC stock.
ATRC butterfly setup
The ATRC 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 ATRC near $28.26, the first option leg uses a $26.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ATRC 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 ATRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.85 | N/A |
| Sell 2 | Call | $28.26 | N/A |
| Buy 1 | Call | $29.67 | N/A |
ATRC 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.
ATRC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ATRC. 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 ATRC
Butterflies on ATRC are pinning bets - traders use them when they expect ATRC 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.
ATRC thesis for this butterfly
The market-implied 1-standard-deviation range for ATRC extends from approximately $21.45 on the downside to $35.07 on the upside. A ATRC long call butterfly is a pinning play: it pays maximum at the middle strike if ATRC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ATRC IV rank near 11.08% 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 ATRC at 84.00%. As a Healthcare name, ATRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ATRC-specific events.
ATRC 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. ATRC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ATRC alongside the broader basket even when ATRC-specific fundamentals are unchanged. Always rebuild the position from current ATRC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ATRC?
- A butterfly on ATRC is the butterfly strategy applied to ATRC (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 ATRC stock trading near $28.26, the strikes shown on this page are snapped to the nearest listed ATRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ATRC 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 ATRC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 84.00%), 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 ATRC butterfly?
- The breakeven for the ATRC 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 ATRC market-implied 1-standard-deviation expected move is approximately 24.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ATRC?
- Butterflies on ATRC are pinning bets - traders use them when they expect ATRC 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 ATRC implied volatility affect this butterfly?
- ATRC ATM IV is at 84.00% with IV rank near 11.08%, 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.