BFLY Bull Call Spread Strategy
BFLY (Butterfly Network, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
Butterfly Network, Inc., a digital health company, develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+, a point-of-care ultrasound imaging device that connects with a smartphone, tablet, and hospital computer system; and Butterfly Blueprint, a system-wide ultrasound platform with Compass software that integrates into a healthcare system's clinical and administrative infrastructure. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions, to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as clinical support and services. Butterfly Network, Inc. was incorporated in 2011 and is headquartered in Guilford, Connecticut.
BFLY (Butterfly Network, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.03B, a beta of 2.28 versus the broader market, a 52-week range of 1.32-5.72, average daily share volume of 6.0M, 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 2.28 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 bull call spread on BFLY?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
Current BFLY snapshot
As of May 15, 2026, spot at $3.83, ATM IV 87.00%, IV rank 26.58%, expected move 24.94%. The bull call 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 34-day expiry.
Why this bull call spread structure on BFLY specifically: BFLY IV at 87.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a BFLY bull call spread, with a market-implied 1-standard-deviation move of approximately 24.94% (roughly $0.96 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 BFLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on BFLY should anchor to the underlying notional of $3.83 per share and to the trader's directional view on BFLY stock.
BFLY bull call spread setup
The BFLY bull call 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 $3.83, the first option leg uses a $3.83 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 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 BFLY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.83 | N/A |
| Sell 1 | Call | $4.02 | N/A |
BFLY bull call 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-call strike plus net debit.
BFLY bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call 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 bull call spread on BFLY
Bull call spreads on BFLY reduce the cost of a bullish BFLY stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
BFLY thesis for this bull call spread
The market-implied 1-standard-deviation range for BFLY extends from approximately $2.87 on the downside to $4.79 on the upside. A BFLY bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call 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 26.58% 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 BFLY at 87.00%. 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 bull call spread positions are structurally moderately bullish; 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 bull call 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 bull call spread on BFLY?
- A bull call spread on BFLY is the bull call spread strategy applied to BFLY (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With BFLY stock trading near $3.83, 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 bull call 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-call strike plus net debit. For the BFLY bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 87.00%), 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 BFLY bull call spread?
- The breakeven for the BFLY bull call 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 24.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on BFLY?
- Bull call spreads on BFLY reduce the cost of a bullish BFLY stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current BFLY implied volatility affect this bull call spread?
- BFLY ATM IV is at 87.00% with IV rank near 26.58%, 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.