CTEV Butterfly Strategy
CTEV (Claritev Corporation), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Claritev Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. The company was formerly known as MultiPlan Corporation and changed its name to Claritev Corporation in February 2025.
CTEV (Claritev Corporation) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $470.2M, a beta of 0.77 versus the broader market, a 52-week range of 12.04-74.07, average daily share volume of 178K, a public-listing history dating back to 2020, approximately 3K full-time employees. These structural characteristics shape how CTEV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places CTEV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CTEV?
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 CTEV snapshot
As of May 15, 2026, spot at $14.34, ATM IV 125.50%, IV rank 19.18%, expected move 35.98%. The butterfly on CTEV 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 217-day expiry.
Why this butterfly structure on CTEV specifically: CTEV IV at 125.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTEV butterfly, with a market-implied 1-standard-deviation move of approximately 35.98% (roughly $5.16 on the underlying). The 217-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CTEV expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTEV should anchor to the underlying notional of $14.34 per share and to the trader's directional view on CTEV stock.
CTEV butterfly setup
The CTEV 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 CTEV near $14.34, the first option leg uses a $13.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTEV chain at a 217-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 CTEV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.62 | N/A |
| Sell 2 | Call | $14.34 | N/A |
| Buy 1 | Call | $15.06 | N/A |
CTEV 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.
CTEV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CTEV. 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 CTEV
Butterflies on CTEV are pinning bets - traders use them when they expect CTEV 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.
CTEV thesis for this butterfly
The market-implied 1-standard-deviation range for CTEV extends from approximately $9.18 on the downside to $19.50 on the upside. A CTEV long call butterfly is a pinning play: it pays maximum at the middle strike if CTEV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CTEV IV rank near 19.18% 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 CTEV at 125.50%. As a Healthcare name, CTEV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTEV-specific events.
CTEV 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. CTEV positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTEV alongside the broader basket even when CTEV-specific fundamentals are unchanged. Always rebuild the position from current CTEV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CTEV?
- A butterfly on CTEV is the butterfly strategy applied to CTEV (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 CTEV stock trading near $14.34, the strikes shown on this page are snapped to the nearest listed CTEV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTEV 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 CTEV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 125.50%), 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 CTEV butterfly?
- The breakeven for the CTEV 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 CTEV market-implied 1-standard-deviation expected move is approximately 35.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CTEV?
- Butterflies on CTEV are pinning bets - traders use them when they expect CTEV 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 CTEV implied volatility affect this butterfly?
- CTEV ATM IV is at 125.50% with IV rank near 19.18%, 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.