BFLY Collar 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 collar on BFLY?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current BFLY snapshot
As of June 29, 2026, spot at $9.07, ATM IV 117.80%, IV rank 49.52%, expected move 33.77%. The collar 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 18-day expiry.
Why this collar structure on BFLY specifically: IV regime affects collar pricing on both sides; mid-range BFLY IV at 117.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 33.77% (roughly $3.06 on the underlying). The 18-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 $9.07 per share and to the trader's directional view on BFLY stock.
BFLY collar setup
The BFLY collar 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 $9.07, the first option leg uses a $9.52 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 18-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 100 shares | Stock | $9.07 | long |
| Sell 1 | Call | $9.52 | N/A |
| Buy 1 | Put | $8.62 | N/A |
BFLY collar 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 roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
BFLY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar 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 collar on BFLY
Collars on BFLY hedge an existing long BFLY stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
BFLY thesis for this collar
The market-implied 1-standard-deviation range for BFLY extends from approximately $6.01 on the downside to $12.13 on the upside. A BFLY collar hedges an existing long BFLY position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current BFLY IV rank near 49.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar 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 collar positions are structurally neutral (protective); 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. Always rebuild the position from current BFLY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BFLY?
- A collar on BFLY is the collar strategy applied to BFLY (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With BFLY stock trading near $9.07, 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 collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the BFLY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 117.80%), 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 collar?
- The breakeven for the BFLY collar 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 33.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BFLY?
- Collars on BFLY hedge an existing long BFLY stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current BFLY implied volatility affect this collar?
- BFLY ATM IV is at 117.80% with IV rank near 49.52%, 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.