CBLL Butterfly Strategy
CBLL (CeriBell, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
CeriBell, Inc. develops AI based point-of-care electroencephalography (EEG) technology for the detection and treatment of neurological conditions. The company develops Ceribell System, a novel, point-of-care EEG platform to address the unmet needs of patients in the acute care setting. It also offers EEG disposable headbands; and pocket-sized battery-operated recorders. The company was formerly known as Brain Stethoscope, Inc. and changed its name to CeriBell, Inc. in August 2015. The company was incorporated in 2014 and is based in Sunnyvale, California.
CBLL (CeriBell, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $678.3M, a beta of 0.99 versus the broader market, a 52-week range of 10.85-24.33, average daily share volume of 298K, a public-listing history dating back to 2024, approximately 281 full-time employees. These structural characteristics shape how CBLL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places CBLL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CBLL?
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 CBLL snapshot
As of May 15, 2026, spot at $16.42, ATM IV 93.90%, IV rank 21.31%, expected move 26.92%. The butterfly on CBLL 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 CBLL specifically: CBLL IV at 93.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CBLL butterfly, with a market-implied 1-standard-deviation move of approximately 26.92% (roughly $4.42 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 CBLL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBLL should anchor to the underlying notional of $16.42 per share and to the trader's directional view on CBLL stock.
CBLL butterfly setup
The CBLL 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 CBLL near $16.42, the first option leg uses a $15.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBLL 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 CBLL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.60 | N/A |
| Sell 2 | Call | $16.42 | N/A |
| Buy 1 | Call | $17.24 | N/A |
CBLL 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.
CBLL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CBLL. 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 CBLL
Butterflies on CBLL are pinning bets - traders use them when they expect CBLL 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.
CBLL thesis for this butterfly
The market-implied 1-standard-deviation range for CBLL extends from approximately $12.00 on the downside to $20.84 on the upside. A CBLL long call butterfly is a pinning play: it pays maximum at the middle strike if CBLL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CBLL IV rank near 21.31% 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 CBLL at 93.90%. As a Healthcare name, CBLL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBLL-specific events.
CBLL 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. CBLL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBLL alongside the broader basket even when CBLL-specific fundamentals are unchanged. Always rebuild the position from current CBLL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CBLL?
- A butterfly on CBLL is the butterfly strategy applied to CBLL (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 CBLL stock trading near $16.42, the strikes shown on this page are snapped to the nearest listed CBLL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CBLL 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 CBLL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 93.90%), 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 CBLL butterfly?
- The breakeven for the CBLL 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 CBLL market-implied 1-standard-deviation expected move is approximately 26.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CBLL?
- Butterflies on CBLL are pinning bets - traders use them when they expect CBLL 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 CBLL implied volatility affect this butterfly?
- CBLL ATM IV is at 93.90% with IV rank near 21.31%, 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.