CBUS Butterfly Strategy
CBUS (Cibus, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Cibus, Inc. is an agricultural biotechnology company that develops and licenses gene-edited plant traits. The company's products enable farmers to achieve higher yields and reduce the use of chemicals, such as fungicides, insecticides and fertilizers, and offer sustainable ingredients. it has patented core technology platform, RTDS, a scalable, standardized, end-to-end, semi-automated and high-throughput gene-editing system marketed under the Trait Machine brand name. The company was formerly known as Calyxt, Inc. and changed its name to Cibus, Inc. in June 2023. Cibus, Inc. was incorporated in 2010 and is headquartered in San Diego, California.
CBUS (Cibus, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $135.1M, a beta of 1.62 versus the broader market, a 52-week range of 1.09-4.191, average daily share volume of 380K, a public-listing history dating back to 2017, approximately 118 full-time employees. These structural characteristics shape how CBUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.62 indicates CBUS 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 butterfly on CBUS?
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.
CBUS snapshot
As of August 14, 2026, spot at $1.78, ATM IV 26.50%, IV rank 2.94%, expected move 7.60%. The butterfly on CBUS below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on CBUS specifically: CBUS IV at 26.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a CBUS butterfly, with a market-implied 1-standard-deviation move of approximately 7.60% (roughly $0.14 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CBUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBUS should anchor to the underlying notional of $1.78 per share and to the trader's directional view on CBUS stock.
CBUS butterfly setup
The CBUS 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 CBUS at $1.78 on that close, the first option leg uses a $1.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBUS chain at a 35-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 CBUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.69 | N/A |
| Sell 2 | Call | $1.78 | N/A |
| Buy 1 | Call | $1.87 | N/A |
CBUS 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.
CBUS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CBUS. 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 CBUS
Butterflies on CBUS are pinning bets - traders use them when they expect CBUS 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.
CBUS thesis for this butterfly
The market-implied 1-standard-deviation range for CBUS extends from approximately $1.64 on the downside to $1.92 on the upside. A CBUS long call butterfly is a pinning play: it pays maximum at the middle strike if CBUS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CBUS IV rank near 2.94% 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 CBUS at 26.50%. As a Healthcare name, CBUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBUS-specific events.
CBUS 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. CBUS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBUS alongside the broader basket even when CBUS-specific fundamentals are unchanged. Always rebuild the position from current CBUS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CBUS?
- A butterfly on CBUS is the butterfly strategy applied to CBUS (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 CBUS stock at $1.78 on the most recent close, the strikes shown on this page are snapped to the nearest listed CBUS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CBUS 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 CBUS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.50%), 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 CBUS butterfly?
- The breakeven for the CBUS butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CBUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CBUS?
- Butterflies on CBUS are pinning bets - traders use them when they expect CBUS 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 CBUS implied volatility affect this butterfly?
- CBUS ATM IV is at 26.50% with IV rank near 2.94%, 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.