CRVL Butterfly Strategy
CRVL (CorVel Corporation), in the Financial Services sector, (Insurance - Brokers industry), listed on NASDAQ.
CorVel Corporation delivers comprehensive solutions designed to assist employers, third-party administrators, insurance providers, and government entities in effectively managing healthcare claims. The company focuses on controlling medical expenditures and ensuring high-quality care across various sectors, including workers' compensation, auto liability, and general health. Leveraging advanced technologies such as artificial intelligence, machine learning, and natural language processing, CorVel enhances the oversight of entire healthcare episodes and their associated costs. Their service portfolio includes a wide array of network solutions, featuring automated medical fee auditing, management and reimbursement for preferred providers, retrospective utilization reviews, and detailed scrutiny of both facility and professional claims. Additionally, they offer pharmacy services, directed care programs, Medicare solutions, clearinghouse functionalities, independent medical examinations, and inpatient medical bill reviews. Beyond network services, CorVel provides a suite of patient management offerings, encompassing claims and case management, round-the-clock nurse triage, utilization management, vocational rehabilitation, and life care planning.
CRVL (CorVel Corporation) trades in the Financial Services sector, specifically Insurance - Brokers, with a market capitalization of approximately $3.19B, a trailing P/E of 29.20, a beta of 0.98 versus the broader market, a 52-week range of 44.83-105.51, average daily share volume of 223K, a public-listing history dating back to 1991, approximately 5K full-time employees. These structural characteristics shape how CRVL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places CRVL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CRVL?
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 CRVL snapshot
As of June 30, 2026, spot at $62.46, ATM IV 301.60%, IV rank 60.34%, expected move 86.47%. The butterfly on CRVL 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 CRVL specifically: CRVL IV at 301.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 86.47% (roughly $54.01 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 CRVL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRVL should anchor to the underlying notional of $62.46 per share and to the trader's directional view on CRVL stock.
CRVL butterfly setup
The CRVL 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 CRVL near $62.46, the first option leg uses a $59.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRVL 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 CRVL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $59.34 | N/A |
| Sell 2 | Call | $62.46 | N/A |
| Buy 1 | Call | $65.58 | N/A |
CRVL 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.
CRVL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CRVL. 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 CRVL
Butterflies on CRVL are pinning bets - traders use them when they expect CRVL 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.
CRVL thesis for this butterfly
The market-implied 1-standard-deviation range for CRVL extends from approximately $8.45 on the downside to $116.47 on the upside. A CRVL long call butterfly is a pinning play: it pays maximum at the middle strike if CRVL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRVL IV rank near 60.34% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CRVL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CRVL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRVL-specific events.
CRVL 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. CRVL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRVL alongside the broader basket even when CRVL-specific fundamentals are unchanged. Always rebuild the position from current CRVL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CRVL?
- A butterfly on CRVL is the butterfly strategy applied to CRVL (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 CRVL stock trading near $62.46, the strikes shown on this page are snapped to the nearest listed CRVL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRVL 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 CRVL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 301.60%), 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 CRVL butterfly?
- The breakeven for the CRVL 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 CRVL market-implied 1-standard-deviation expected move is approximately 86.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CRVL?
- Butterflies on CRVL are pinning bets - traders use them when they expect CRVL 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 CRVL implied volatility affect this butterfly?
- CRVL ATM IV is at 301.60% with IV rank near 60.34%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.