CGON Butterfly Strategy
CGON (CG Oncology, Inc. Common stock), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
CG Oncology Inc is a clinical biopharmaceutical company focused on developing and commercializing a potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer. Their product candidate cretostimogene, is initially in clinical development for the treatment of patients with high-risk Non-Muscle Invasive Bladder Cancer who are unresponsive to Bacillus Calmette Guerin (BCG) therapy, the current standard-of-care for high-risk NMIBC.
CGON (CG Oncology, Inc. Common stock) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.53B, a beta of 0.42 versus the broader market, a 52-week range of 23.376-74.35, average daily share volume of 1.2M, a public-listing history dating back to 2024, approximately 113 full-time employees. These structural characteristics shape how CGON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates CGON has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on CGON?
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 CGON snapshot
As of May 15, 2026, spot at $67.35, ATM IV 113.90%, IV rank 73.40%, expected move 32.65%. The butterfly on CGON 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 CGON specifically: CGON IV at 113.90% is rich versus its 1-year range, which makes a premium-buying CGON butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 32.65% (roughly $21.99 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 CGON expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGON should anchor to the underlying notional of $67.35 per share and to the trader's directional view on CGON stock.
CGON butterfly setup
The CGON 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 CGON near $67.35, the first option leg uses a $63.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGON 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 CGON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $63.98 | N/A |
| Sell 2 | Call | $67.35 | N/A |
| Buy 1 | Call | $70.72 | N/A |
CGON 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.
CGON butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CGON. 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 CGON
Butterflies on CGON are pinning bets - traders use them when they expect CGON 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.
CGON thesis for this butterfly
The market-implied 1-standard-deviation range for CGON extends from approximately $45.36 on the downside to $89.34 on the upside. A CGON long call butterfly is a pinning play: it pays maximum at the middle strike if CGON settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CGON IV rank near 73.40% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CGON at 113.90%. As a Healthcare name, CGON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGON-specific events.
CGON 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. CGON positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGON alongside the broader basket even when CGON-specific fundamentals are unchanged. Always rebuild the position from current CGON chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CGON?
- A butterfly on CGON is the butterfly strategy applied to CGON (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 CGON stock trading near $67.35, the strikes shown on this page are snapped to the nearest listed CGON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGON 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 CGON butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 113.90%), 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 CGON butterfly?
- The breakeven for the CGON 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 CGON market-implied 1-standard-deviation expected move is approximately 32.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CGON?
- Butterflies on CGON are pinning bets - traders use them when they expect CGON 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 CGON implied volatility affect this butterfly?
- CGON ATM IV is at 113.90% with IV rank near 73.40%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.