How are COGT 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 COGT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), the computed maximum profit is $259.97 per contract and the computed maximum loss is $65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COGT butterfly?

The breakeven for the COGT 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 COGT market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current COGT implied volatility affect this butterfly?

COGT ATM IV is at 46.30% with IV rank near 0.39%, 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.

COGT Butterfly Strategy

COGT (Cogent Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Cogent Biosciences, Inc. is a biotechnology firm dedicated to creating targeted treatments for illnesses rooted in specific genetic anomalies. The company's primary therapeutic candidate is CGT9486, a selective tyrosine kinase inhibitor engineered to block the KIT D816V mutation, a key driver of systemic mastocytosis, along with other KIT exon 17 mutations observed in individuals suffering from advanced gastrointestinal stromal tumors (GIST). Furthermore, Cogent holds a licensing pact with Plexxikon Inc., granting it rights for the investigation, advancement, and marketing of bezuclastinib. Previously known as Unum Therapeutics Inc., the company adopted its current name, Cogent Biosciences, Inc., in October 2020. Established in 2014, Cogent Biosciences is headquartered in Cambridge, Massachusetts.

COGT (Cogent Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.51B, a beta of 0.35 versus the broader market, a 52-week range of 7.07-43.73, average daily share volume of 2.4M, a public-listing history dating back to 2018, approximately 205 full-time employees. These structural characteristics shape how COGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.35 indicates COGT 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 COGT?

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 COGT snapshot

As of June 30, 2026, spot at $38.75, ATM IV 46.30%, IV rank 0.39%, expected move 13.27%. The butterfly on COGT 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 COGT specifically: COGT IV at 46.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a COGT butterfly, with a market-implied 1-standard-deviation move of approximately 13.27% (roughly $5.14 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 COGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on COGT should anchor to the underlying notional of $38.75 per share and to the trader's directional view on COGT stock.

COGT butterfly setup

The COGT 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 COGT near $38.75, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COGT 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 COGT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$37.00	$3.38
Sell 2	Call	$39.00	$2.55
Buy 1	Call	$41.00	$1.08

COGT butterfly risk and reward

Net Premium / Debit: +$65.00
Max Profit (per contract): $259.97
Max Loss (per contract): $65.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 4.000

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.

COGT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on COGT. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$65.00
$8.58	-77.9%	+$65.00
$17.14	-55.8%	+$65.00
$25.71	-33.7%	+$65.00
$34.28	-11.5%	+$65.00
$42.84	+10.6%	+$65.00
$51.41	+32.7%	+$65.00
$59.98	+54.8%	+$65.00
$68.54	+76.9%	+$65.00
$77.11	+99.0%	+$65.00

When traders use butterfly on COGT

Butterflies on COGT are pinning bets - traders use them when they expect COGT 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.

COGT thesis for this butterfly

The market-implied 1-standard-deviation range for COGT extends from approximately $33.61 on the downside to $43.89 on the upside. A COGT long call butterfly is a pinning play: it pays maximum at the middle strike if COGT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current COGT IV rank near 0.39% 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 COGT at 46.30%. As a Healthcare name, COGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COGT-specific events.

COGT 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. COGT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COGT alongside the broader basket even when COGT-specific fundamentals are unchanged. Always rebuild the position from current COGT chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on COGT?: A butterfly on COGT is the butterfly strategy applied to COGT (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 COGT stock trading near $38.75, the strikes shown on this page are snapped to the nearest listed COGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are COGT 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 COGT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), the computed maximum profit is $259.97 per contract and the computed maximum loss is $65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COGT butterfly?: The breakeven for the COGT 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 COGT market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on COGT?: Butterflies on COGT are pinning bets - traders use them when they expect COGT 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 COGT implied volatility affect this butterfly?: COGT ATM IV is at 46.30% with IV rank near 0.39%, 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.