DNTH Butterfly Strategy
DNTH (Dianthus Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Dianthus Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development of therapies for patients with severe autoimmune diseases. Its lead clinical-stage candidate, claseprubart, a monoclonal antibody engineered with extended half-life, improved potency, and high selectivity for only the active C1s complement protein; and DNTH212, a bifunctional fusion protein that targets plasmacytoid dendritic cell (pDC) BDCA2 to reduce Type 1 interferon production, while simultaneously inhibiting BAFF/APRIL to suppress B cell function. Dianthus Therapeutics, Inc. was founded in 2019 and is headquartered in New York, New York.
DNTH (Dianthus Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.29B, a beta of 0.08 versus the broader market, a 52-week range of 19.84-114.55, average daily share volume of 917K, a public-listing history dating back to 2018, approximately 92 full-time employees. These structural characteristics shape how DNTH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.08 indicates DNTH 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 DNTH?
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.
DNTH snapshot
As of August 14, 2026, spot at $115.72, ATM IV 56.10%, IV rank 1.68%, expected move 16.08%. The butterfly on DNTH below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on DNTH specifically: DNTH IV at 56.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a DNTH butterfly, with a market-implied 1-standard-deviation move of approximately 16.08% (roughly $18.61 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DNTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on DNTH should anchor to the underlying notional of $115.72 per share and to the trader's directional view on DNTH stock.
DNTH butterfly setup
The DNTH butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DNTH at $115.72 on that close, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DNTH chain at a 35-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 DNTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $110.00 | $10.85 |
| Sell 2 | Call | $115.00 | $7.95 |
| Buy 1 | Call | $120.00 | $6.05 |
DNTH butterfly risk and reward
- Net Premium / Debit
- -$100.00
- Max Profit (per contract)
- $385.65
- Max Loss (per contract)
- -$100.00
- Breakeven(s)
- $111.00, $119.00
- Risk / Reward Ratio
- 3.856
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.
DNTH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DNTH. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$100.00 |
| $25.60 | -77.9% | -$100.00 |
| $51.18 | -55.8% | -$100.00 |
| $76.77 | -33.7% | -$100.00 |
| $102.35 | -11.6% | -$100.00 |
| $127.94 | +10.6% | -$100.00 |
| $153.52 | +32.7% | -$100.00 |
| $179.11 | +54.8% | -$100.00 |
| $204.69 | +76.9% | -$100.00 |
| $230.28 | +99.0% | -$100.00 |
When traders use butterfly on DNTH
Butterflies on DNTH are pinning bets - traders use them when they expect DNTH 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.
DNTH thesis for this butterfly
The market-implied 1-standard-deviation range for DNTH extends from approximately $97.11 on the downside to $134.33 on the upside. A DNTH long call butterfly is a pinning play: it pays maximum at the middle strike if DNTH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DNTH IV rank near 1.68% 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 DNTH at 56.10%. As a Healthcare name, DNTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DNTH-specific events.
DNTH 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. DNTH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DNTH alongside the broader basket even when DNTH-specific fundamentals are unchanged. Always rebuild the position from current DNTH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DNTH?
- A butterfly on DNTH is the butterfly strategy applied to DNTH (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 DNTH stock at $115.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DNTH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DNTH 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 DNTH butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 56.10%), the computed maximum profit is $385.65 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DNTH butterfly?
- The breakeven for the DNTH butterfly priced on this page is roughly $111.00 and $119.00 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DNTH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DNTH?
- Butterflies on DNTH are pinning bets - traders use them when they expect DNTH 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 DNTH implied volatility affect this butterfly?
- DNTH ATM IV is at 56.10% with IV rank near 1.68%, 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.