CODX Butterfly Strategy
CODX (Co-Diagnostics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Co-Diagnostics, Inc. operates as a molecular diagnostics company that develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is based in Salt Lake City, Utah.
CODX (Co-Diagnostics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.7M, a beta of 2.88 versus the broader market, a 52-week range of 1.26-46.5, average daily share volume of 5.8M, a public-listing history dating back to 2017, approximately 115 full-time employees. These structural characteristics shape how CODX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.88 indicates CODX 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 CODX?
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.
CODX snapshot
As of August 14, 2026, spot at $1.42, ATM IV 35.20%, IV rank 4.05%, expected move 10.09%. The butterfly on CODX 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 7-day expiry.
Why this butterfly structure on CODX specifically: CODX IV at 35.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a CODX butterfly, with a market-implied 1-standard-deviation move of approximately 10.09% (roughly $0.14 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CODX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CODX should anchor to the underlying notional of $1.42 per share and to the trader's directional view on CODX stock.
CODX butterfly setup
The CODX 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 CODX at $1.42 on that close, the first option leg uses a $1.35 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CODX chain at a 7-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 CODX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.35 | N/A |
| Sell 2 | Call | $1.42 | N/A |
| Buy 1 | Call | $1.49 | N/A |
CODX 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.
CODX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CODX. 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 CODX
Butterflies on CODX are pinning bets - traders use them when they expect CODX 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.
CODX thesis for this butterfly
The market-implied 1-standard-deviation range for CODX extends from approximately $1.28 on the downside to $1.56 on the upside. A CODX long call butterfly is a pinning play: it pays maximum at the middle strike if CODX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CODX IV rank near 4.05% 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 CODX at 35.20%. As a Healthcare name, CODX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CODX-specific events.
CODX 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. CODX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CODX alongside the broader basket even when CODX-specific fundamentals are unchanged. Always rebuild the position from current CODX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CODX?
- A butterfly on CODX is the butterfly strategy applied to CODX (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 CODX stock at $1.42 on the most recent close, the strikes shown on this page are snapped to the nearest listed CODX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CODX 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 CODX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), 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 CODX butterfly?
- The breakeven for the CODX 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 CODX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CODX?
- Butterflies on CODX are pinning bets - traders use them when they expect CODX 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 CODX implied volatility affect this butterfly?
- CODX ATM IV is at 35.20% with IV rank near 4.05%, 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.