DOCS Butterfly Strategy
DOCS (Doximity, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Doximity, Inc. provides a digital platform, hosted in the cloud, specifically designed for healthcare practitioners throughout the United States. This platform delivers a suite of specialized tools, empowering its members to connect with peers, streamline patient treatment, conduct remote consultations, access current medical information and research, and advance their professional careers. Its primary clientele consists of pharmaceutical companies and healthcare organizations. Established in 2010, the entity initially operated as 3MD Communications, Inc. before rebranding to Doximity, Inc. in June of that year. The company's corporate headquarters are situated in San Francisco, California.
DOCS (Doximity, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $4.67B, a trailing P/E of 27.31, a beta of 1.29 versus the broader market, a 52-week range of 17.15-76.51, average daily share volume of 4.7M, a public-listing history dating back to 2021, approximately 880 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 1.29 places DOCS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
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.
DOCS snapshot
As of August 14, 2026, spot at $25.00, ATM IV 47.50%, IV rank 7.46%, expected move 13.62%. The butterfly on DOCS 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 7-day expiry.
Why this butterfly structure on DOCS specifically: DOCS IV at 47.50% 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 13.62% (roughly $3.40 on the underlying). The 7-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 $25.00 per share and to the trader's directional view on DOCS stock.
DOCS butterfly setup
The DOCS 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 DOCS at $25.00 on that close, the first option leg uses a $23.75 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 7-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 | $23.75 | N/A |
| Sell 2 | Call | $25.00 | N/A |
| Buy 1 | Call | $26.25 | 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 $21.60 on the downside to $28.40 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 7.46% 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 47.50%. 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 at $25.00 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DOCS chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.50%), 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 DOCS butterfly?
- The breakeven for the DOCS butterfly priced on this page is no defined breakeven on the modeled curve 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 DOCS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.62%; 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 47.50% with IV rank near 7.46%, 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.