BFLY Bear Put Spread Strategy
BFLY (Butterfly Network, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
Butterfly Network, Inc. functions as a digital health enterprise, specializing in the invention, production, and global commercialization of cutting-edge ultrasound imaging technologies for both domestic and international markets. The company's innovative product portfolio includes the portable Butterfly iQ, a versatile single-probe system capable of whole-body ultrasound imaging, and the Butterfly iQ+, a point-of-care ultrasound device engineered to connect effortlessly with smartphones, tablets, and existing hospital computer networks. Additionally, Butterfly Blueprint is offered as a comprehensive, system-wide ultrasound platform that seamlessly integrates its proprietary Compass software into a healthcare provider's clinical and administrative infrastructure. These ultrasound systems, encompassing probes, related accessories, and software subscriptions, are supplied to healthcare systems, individual physicians, and other medical professionals through a multi-channel distribution strategy that includes a direct sales force, a network of distributors, and an e-commerce platform. Beyond its hardware, Butterfly Network provides a suite of cloud-based software solutions for healthcare organizations. These offerings feature teleguidance services, interactive in-app educational modules, and structured training programs delivered via its Butterfly Academy software, all complemented by dedicated clinical support and services.
BFLY (Butterfly Network, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $2.33B, a beta of 2.20 versus the broader market, a 52-week range of 1.32-8.94, average daily share volume of 6.7M, a public-listing history dating back to 2020, approximately 190 full-time employees. These structural characteristics shape how BFLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.20 indicates BFLY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on BFLY?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current BFLY snapshot
As of June 30, 2026, spot at $8.48, ATM IV 122.60%, IV rank 53.09%, expected move 35.15%. The bear put spread on BFLY 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 17-day expiry.
Why this bear put spread structure on BFLY specifically: BFLY IV at 122.60% 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 35.15% (roughly $2.98 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BFLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on BFLY should anchor to the underlying notional of $8.48 per share and to the trader's directional view on BFLY stock.
BFLY bear put spread setup
The BFLY bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BFLY near $8.48, the first option leg uses a $8.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BFLY chain at a 17-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 BFLY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $8.48 | N/A |
| Sell 1 | Put | $8.06 | N/A |
BFLY bear put spread 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 strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
BFLY bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on BFLY. 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 bear put spread on BFLY
Bear put spreads on BFLY reduce the cost of a bearish BFLY stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
BFLY thesis for this bear put spread
The market-implied 1-standard-deviation range for BFLY extends from approximately $5.50 on the downside to $11.46 on the upside. A BFLY bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on BFLY, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current BFLY IV rank near 53.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on BFLY should anchor more to the directional view and the expected-move geometry. As a Healthcare name, BFLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BFLY-specific events.
BFLY bear put spread positions are structurally moderately bearish; 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. BFLY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BFLY alongside the broader basket even when BFLY-specific fundamentals are unchanged. Long-premium structures like a bear put spread on BFLY are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current BFLY chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on BFLY?
- A bear put spread on BFLY is the bear put spread strategy applied to BFLY (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With BFLY stock trading near $8.48, the strikes shown on this page are snapped to the nearest listed BFLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BFLY bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the BFLY bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 122.60%), 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 BFLY bear put spread?
- The breakeven for the BFLY bear put spread 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 BFLY market-implied 1-standard-deviation expected move is approximately 35.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on BFLY?
- Bear put spreads on BFLY reduce the cost of a bearish BFLY stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current BFLY implied volatility affect this bear put spread?
- BFLY ATM IV is at 122.60% with IV rank near 53.09%, 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.