DOCS Butterfly Strategy
DOCS (Doximity, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company's platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical manufacturers and healthcare systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.
DOCS (Doximity, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $4.39B, a trailing P/E of 22.05, a beta of 1.35 versus the broader market, a 52-week range of 20.55-76.51, average daily share volume of 3.1M, a public-listing history dating back to 2021, approximately 827 full-time employees. These structural characteristics shape how DOCS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates DOCS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on DOCS?
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 DOCS snapshot
As of May 15, 2026, spot at $18.68, ATM IV 56.70%, IV rank 12.07%, expected move 16.26%. The butterfly on DOCS 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 98-day expiry.
Why this butterfly structure on DOCS specifically: DOCS IV at 56.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a DOCS butterfly, with a market-implied 1-standard-deviation move of approximately 16.26% (roughly $3.04 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DOCS expiries trade a higher absolute premium for lower per-day decay. Position sizing on DOCS should anchor to the underlying notional of $18.68 per share and to the trader's directional view on DOCS stock.
DOCS butterfly setup
The DOCS 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 DOCS near $18.68, the first option leg uses a $17.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DOCS chain at a 98-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 DOCS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.75 | N/A |
| Sell 2 | Call | $18.68 | N/A |
| Buy 1 | Call | $19.61 | N/A |
DOCS 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.
DOCS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DOCS. 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 DOCS
Butterflies on DOCS are pinning bets - traders use them when they expect DOCS 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.
DOCS thesis for this butterfly
The market-implied 1-standard-deviation range for DOCS extends from approximately $15.64 on the downside to $21.72 on the upside. A DOCS long call butterfly is a pinning play: it pays maximum at the middle strike if DOCS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DOCS IV rank near 12.07% 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 DOCS at 56.70%. As a Healthcare name, DOCS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DOCS-specific events.
DOCS 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. DOCS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DOCS alongside the broader basket even when DOCS-specific fundamentals are unchanged. Always rebuild the position from current DOCS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DOCS?
- A butterfly on DOCS is the butterfly strategy applied to DOCS (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 DOCS stock trading near $18.68, the strikes shown on this page are snapped to the nearest listed DOCS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DOCS 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 DOCS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.70%), 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 DOCS butterfly?
- The breakeven for the DOCS 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 DOCS market-implied 1-standard-deviation expected move is approximately 16.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DOCS?
- Butterflies on DOCS are pinning bets - traders use them when they expect DOCS 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 DOCS implied volatility affect this butterfly?
- DOCS ATM IV is at 56.70% with IV rank near 12.07%, 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.