CSBR Butterfly Strategy
CSBR (Champions Oncology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Champions Oncology, Inc. is dedicated to developing and commercializing cutting-edge technological products and services designed to personalize cancer treatment and streamline the development of oncology drugs across the United States. At the heart of its offerings is the Tumorgraft Technology Platform, an innovative approach that facilitates individualized cancer care by implanting human tumors into immune-deficient mice. Utilizing this proprietary platform, the company not only delivers personalized cancer solutions directly but also provides Translational Oncology Solutions, supporting pharmaceutical and biotechnology companies through their drug development lifecycle. Additionally, Champions Oncology offers Lumin Bioinformatics, a comprehensive software platform and data tool filled with insights from research services and clinical studies, accessible through annual subscriptions. The company distributes its offerings through various channels, including online platforms, word-of-mouth referrals, and a dedicated sales team, reaching both patients and healthcare professionals. Established in 1985, Champions Oncology, Inc. is based in Hackensack, New Jersey, and was formerly known as Champions Biotechnology, Inc. until its name change in April 2011.
CSBR (Champions Oncology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $92.1M, a beta of 0.40 versus the broader market, a 52-week range of 5.5-9.63, average daily share volume of 8K, a public-listing history dating back to 2007, approximately 210 full-time employees. These structural characteristics shape how CSBR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates CSBR 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 CSBR?
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 CSBR snapshot
As of June 29, 2026, spot at $6.20, ATM IV 23.80%, IV rank 4.38%, expected move 6.82%. The butterfly on CSBR 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 18-day expiry.
Why this butterfly structure on CSBR specifically: CSBR IV at 23.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CSBR butterfly, with a market-implied 1-standard-deviation move of approximately 6.82% (roughly $0.42 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CSBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSBR should anchor to the underlying notional of $6.20 per share and to the trader's directional view on CSBR stock.
CSBR butterfly setup
The CSBR 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 CSBR near $6.20, the first option leg uses a $5.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSBR chain at a 18-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 CSBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.89 | N/A |
| Sell 2 | Call | $6.20 | N/A |
| Buy 1 | Call | $6.51 | N/A |
CSBR 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.
CSBR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CSBR. 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 CSBR
Butterflies on CSBR are pinning bets - traders use them when they expect CSBR 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.
CSBR thesis for this butterfly
The market-implied 1-standard-deviation range for CSBR extends from approximately $5.78 on the downside to $6.62 on the upside. A CSBR long call butterfly is a pinning play: it pays maximum at the middle strike if CSBR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CSBR IV rank near 4.38% 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 CSBR at 23.80%. As a Healthcare name, CSBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSBR-specific events.
CSBR 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. CSBR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSBR alongside the broader basket even when CSBR-specific fundamentals are unchanged. Always rebuild the position from current CSBR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CSBR?
- A butterfly on CSBR is the butterfly strategy applied to CSBR (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 CSBR stock trading near $6.20, the strikes shown on this page are snapped to the nearest listed CSBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CSBR 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 CSBR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.80%), 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 CSBR butterfly?
- The breakeven for the CSBR 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 CSBR market-implied 1-standard-deviation expected move is approximately 6.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CSBR?
- Butterflies on CSBR are pinning bets - traders use them when they expect CSBR 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 CSBR implied volatility affect this butterfly?
- CSBR ATM IV is at 23.80% with IV rank near 4.38%, 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.