CNMD Butterfly Strategy
CNMD (CONMED Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
CONMED Corporation functions as a medical technology enterprise, specializing in the global development, production, and distribution of surgical instruments and related apparatus for a variety of surgical procedures. Its comprehensive product portfolio includes specialized orthopedic surgical items, such as the TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-Knot All-Suture Anchors, and PopLok Knotless Suture Anchors. These innovative offerings provide unique clinical advantages to orthopedic surgeons for repairing soft tissue injuries and are complemented by supportive tools that facilitate minimally invasive sports medicine operations. These orthopedic solutions are marketed under prominent brand names, including Hall, CONMED Linvatec, Concept, and Shutt. Furthermore, CONMED supplies general surgical equipment, encompassing items for clinical insufflation, smoke evacuation, electrosurgical interventions, and endomechanical applications. Its endoscopic technology segment provides both diagnostic and therapeutic instruments utilized in gastroenterological procedures, alongside products specifically designed for addressing conditions of the biliary system.
CNMD (CONMED Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.08B, a trailing P/E of 20.05, a beta of 0.92 versus the broader market, a 52-week range of 31.44-56.64, average daily share volume of 485K, a public-listing history dating back to 1987, approximately 4K full-time employees. These structural characteristics shape how CNMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places CNMD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNMD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CNMD?
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 CNMD snapshot
As of June 30, 2026, spot at $32.65, ATM IV 69.30%, IV rank 19.47%, expected move 19.87%. The butterfly on CNMD 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 17-day expiry.
Why this butterfly structure on CNMD specifically: CNMD IV at 69.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a CNMD butterfly, with a market-implied 1-standard-deviation move of approximately 19.87% (roughly $6.49 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CNMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNMD should anchor to the underlying notional of $32.65 per share and to the trader's directional view on CNMD stock.
CNMD butterfly setup
The CNMD 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 CNMD near $32.65, the first option leg uses a $31.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNMD chain at a 17-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 CNMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.02 | N/A |
| Sell 2 | Call | $32.65 | N/A |
| Buy 1 | Call | $34.28 | N/A |
CNMD 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.
CNMD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CNMD. 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 CNMD
Butterflies on CNMD are pinning bets - traders use them when they expect CNMD 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.
CNMD thesis for this butterfly
The market-implied 1-standard-deviation range for CNMD extends from approximately $26.16 on the downside to $39.14 on the upside. A CNMD long call butterfly is a pinning play: it pays maximum at the middle strike if CNMD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CNMD IV rank near 19.47% 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 CNMD at 69.30%. As a Healthcare name, CNMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNMD-specific events.
CNMD 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. CNMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNMD alongside the broader basket even when CNMD-specific fundamentals are unchanged. Always rebuild the position from current CNMD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CNMD?
- A butterfly on CNMD is the butterfly strategy applied to CNMD (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 CNMD stock trading near $32.65, the strikes shown on this page are snapped to the nearest listed CNMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNMD 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 CNMD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 69.30%), 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 CNMD butterfly?
- The breakeven for the CNMD 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 CNMD market-implied 1-standard-deviation expected move is approximately 19.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CNMD?
- Butterflies on CNMD are pinning bets - traders use them when they expect CNMD 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 CNMD implied volatility affect this butterfly?
- CNMD ATM IV is at 69.30% with IV rank near 19.47%, 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.