COO Butterfly Strategy
COO (The Cooper Companies, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
The Cooper Companies, Inc., together with its subsidiaries, develops, manufactures, and markets contact lens wearers. The company operates in two segments, CooperVision and CooperSurgical. The CooperVision segment offers spherical lense, including lenses that correct near and farsightedness; and toric and multifocal lenses comprising lenses correcting vision challenges, such as astigmatism, presbyopia, myopia, ocular dryness and eye fatigues in the Americas, Europe, Middle East, Africa, and Asia Pacific. The CooperSurgical segment focuses on family and women's health care, which provides medical devices, fertility, genomics, diagnostics, and contraception to health care professionals and patients worldwide. It offers surgical and office products, including PARAGARD, uterine manipulators, retractors, closure products, point of care products, LEEP products, endosee, and illuminate and fetal pillows; fertility products and services, such as fertility consumables and equipment, and embryo options and preimplantation genetic testing. The Cooper Companies, Inc. was founded in 1958 and is headquartered in San Ramon, California.
COO (The Cooper Companies, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $11.60B, a trailing P/E of 29.14, a beta of 0.89 versus the broader market, a 52-week range of 58.89-89.83, average daily share volume of 2.1M, a public-listing history dating back to 1983, approximately 16K full-time employees. These structural characteristics shape how COO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.89 places COO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on COO?
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 COO snapshot
As of May 15, 2026, spot at $59.66, ATM IV 44.90%, IV rank 16.95%, expected move 12.87%. The butterfly on COO 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 COO specifically: COO IV at 44.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a COO butterfly, with a market-implied 1-standard-deviation move of approximately 12.87% (roughly $7.68 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 COO expiries trade a higher absolute premium for lower per-day decay. Position sizing on COO should anchor to the underlying notional of $59.66 per share and to the trader's directional view on COO stock.
COO butterfly setup
The COO 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 COO near $59.66, the first option leg uses a $56.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COO 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 COO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $56.68 | N/A |
| Sell 2 | Call | $59.66 | N/A |
| Buy 1 | Call | $62.64 | N/A |
COO 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.
COO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on COO. 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 COO
Butterflies on COO are pinning bets - traders use them when they expect COO 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.
COO thesis for this butterfly
The market-implied 1-standard-deviation range for COO extends from approximately $51.98 on the downside to $67.34 on the upside. A COO long call butterfly is a pinning play: it pays maximum at the middle strike if COO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current COO IV rank near 16.95% 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 COO at 44.90%. As a Healthcare name, COO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COO-specific events.
COO 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. COO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COO alongside the broader basket even when COO-specific fundamentals are unchanged. Always rebuild the position from current COO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on COO?
- A butterfly on COO is the butterfly strategy applied to COO (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 COO stock trading near $59.66, the strikes shown on this page are snapped to the nearest listed COO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are COO 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 COO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.90%), 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 COO butterfly?
- The breakeven for the COO 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 COO market-implied 1-standard-deviation expected move is approximately 12.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on COO?
- Butterflies on COO are pinning bets - traders use them when they expect COO 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 COO implied volatility affect this butterfly?
- COO ATM IV is at 44.90% with IV rank near 16.95%, 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.