DYAI Butterfly Strategy
DYAI (Dyadic International, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Dyadic International, Inc., a biotechnology platform company, develops, produces, and sells enzymes and other proteins in the United States. The company utilizes its patented and proprietary C1 platform and other technologies to conduct research, development, and commercial activities for the development and manufacturing of human and animal vaccines and drugs, such as virus like particles and antigens, monoclonal antibodies, bi/tri-specific antibodies, fab antibody fragments, Fc-fusion proteins, biosimilars and/or biobetters, and other therapeutic enzymes and proteins. It offers DYAI-100, SARS-CoV-2-RBD antigen vaccine candidate towards a first-in-human Phase 1 clinical trial, is to validate to serve as proof of concept for the development of next generation multivariant COVID-19 vaccine candidates. The company has a research and development agreement with VTT Technical Research Centre of Finland, Ltd.; strategic research services agreement with Biotechnology Developments for Industry in Pharmaceuticals, S.L.U.; and collaboration with Syngene International Limited. Dyadic International, Inc. was founded in 1979 and is headquartered in Jupiter, Florida.
DYAI (Dyadic International, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $25.9M, a beta of 1.17 versus the broader market, a 52-week range of 0.65-1.35, average daily share volume of 79K, a public-listing history dating back to 2008, approximately 6 full-time employees. These structural characteristics shape how DYAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.17 places DYAI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on DYAI?
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 DYAI snapshot
As of May 15, 2026, spot at $0.73, ATM IV 24.60%, IV rank 1.90%, expected move 7.05%. The butterfly on DYAI 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 34-day expiry.
Why this butterfly structure on DYAI specifically: DYAI IV at 24.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a DYAI butterfly, with a market-implied 1-standard-deviation move of approximately 7.05% (roughly $0.05 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DYAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on DYAI should anchor to the underlying notional of $0.73 per share and to the trader's directional view on DYAI stock.
DYAI butterfly setup
The DYAI 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 DYAI near $0.73, the first option leg uses a $0.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DYAI chain at a 34-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 DYAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.69 | N/A |
| Sell 2 | Call | $0.73 | N/A |
| Buy 1 | Call | $0.77 | N/A |
DYAI 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.
DYAI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DYAI. 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 DYAI
Butterflies on DYAI are pinning bets - traders use them when they expect DYAI 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.
DYAI thesis for this butterfly
The market-implied 1-standard-deviation range for DYAI extends from approximately $0.68 on the downside to $0.78 on the upside. A DYAI long call butterfly is a pinning play: it pays maximum at the middle strike if DYAI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DYAI IV rank near 1.90% 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 DYAI at 24.60%. As a Healthcare name, DYAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DYAI-specific events.
DYAI 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. DYAI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DYAI alongside the broader basket even when DYAI-specific fundamentals are unchanged. Always rebuild the position from current DYAI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DYAI?
- A butterfly on DYAI is the butterfly strategy applied to DYAI (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 DYAI stock trading near $0.73, the strikes shown on this page are snapped to the nearest listed DYAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DYAI 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 DYAI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.60%), 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 DYAI butterfly?
- The breakeven for the DYAI 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 DYAI market-implied 1-standard-deviation expected move is approximately 7.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DYAI?
- Butterflies on DYAI are pinning bets - traders use them when they expect DYAI 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 DYAI implied volatility affect this butterfly?
- DYAI ATM IV is at 24.60% with IV rank near 1.90%, 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.