CVRX Butterfly Strategy
CVRX (CVRx, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
CVRx, Inc. is a commercial-stage medical technology company focused on innovating, producing, and bringing to market neuromodulation solutions designed for individuals battling cardiovascular diseases. Its principal offering, Barostim, is an advanced neuromodulation device specifically indicated to ameliorate symptoms for patients diagnosed with heart failure characterized by reduced ejection fraction, often referred to as systolic heart failure. The company employs a diverse distribution strategy, leveraging its internal sales force, alongside sales agents and independent distributors, to reach markets across the United States, Germany, the wider European continent, and other global territories. Incorporated in 2000, CVRx, Inc. is headquartered in Minneapolis, Minnesota.
CVRX (CVRx, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $155.5M, a beta of 0.77 versus the broader market, a 52-week range of 4.37-11.3, average daily share volume of 310K, a public-listing history dating back to 2021, approximately 206 full-time employees. These structural characteristics shape how CVRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places CVRX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on CVRX?
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 CVRX snapshot
As of June 30, 2026, spot at $5.09, ATM IV 490.60%, IV rank 95.36%, expected move 140.65%. The butterfly on CVRX 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 CVRX specifically: CVRX IV at 490.60% is rich versus its 1-year range, which makes a premium-buying CVRX butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 140.65% (roughly $7.16 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 CVRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVRX should anchor to the underlying notional of $5.09 per share and to the trader's directional view on CVRX stock.
CVRX butterfly setup
The CVRX 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 CVRX near $5.09, the first option leg uses a $4.84 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVRX 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 CVRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.84 | N/A |
| Sell 2 | Call | $5.09 | N/A |
| Buy 1 | Call | $5.34 | N/A |
CVRX 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.
CVRX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CVRX. 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 CVRX
Butterflies on CVRX are pinning bets - traders use them when they expect CVRX 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.
CVRX thesis for this butterfly
The market-implied 1-standard-deviation range for CVRX extends from approximately $-2.07 on the downside to $12.25 on the upside. A CVRX long call butterfly is a pinning play: it pays maximum at the middle strike if CVRX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CVRX IV rank near 95.36% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CVRX at 490.60%. As a Healthcare name, CVRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVRX-specific events.
CVRX 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. CVRX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVRX alongside the broader basket even when CVRX-specific fundamentals are unchanged. Always rebuild the position from current CVRX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CVRX?
- A butterfly on CVRX is the butterfly strategy applied to CVRX (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 CVRX stock trading near $5.09, the strikes shown on this page are snapped to the nearest listed CVRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVRX 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 CVRX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 490.60%), 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 CVRX butterfly?
- The breakeven for the CVRX 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 CVRX market-implied 1-standard-deviation expected move is approximately 140.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CVRX?
- Butterflies on CVRX are pinning bets - traders use them when they expect CVRX 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 CVRX implied volatility affect this butterfly?
- CVRX ATM IV is at 490.60% with IV rank near 95.36%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.