EHAB Butterfly Strategy
EHAB (Enhabit, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
Enhabit, Inc. provides home health and hospice services in the United States. Its home health services include patient education, pain management, wound care and dressing changes, cardiac rehabilitation, infusion therapy, pharmaceutical administration, and skilled observation and assessment services; practices to treat chronic diseases and conditions, including diabetes, hypertension, arthritis, Alzheimer's disease, low vision, spinal stenosis, Parkinson's disease, osteoporosis, complex wound care and chronic pain, along with disease-specific plans for patients with diabetes, congestive heart failure, post-orthopedic surgery, or injury and respiratory diseases; and physical, occupational and speech therapists provide therapy services. The company also offers hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and bereavement counseling services to meet the individual physical, emotional, spiritual, and psychosocial needs of terminally ill patients and their families. As of March 31, 2022, it operated in 252 home health agencies and 99 hospice agencies across 34 states. The company was formerly known as Encompass Health Home Health Holdings, Inc. and changed its name to Enhabit, Inc. in March 2022. Enhabit, Inc. was incorporated in 2014 and is headquartered in Dallas, Texas.
EHAB (Enhabit, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $706.4M, a beta of 0.96 versus the broader market, a 52-week range of 6.47-14.22, average daily share volume of 1.6M, a public-listing history dating back to 2022, approximately 11K full-time employees. These structural characteristics shape how EHAB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places EHAB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on EHAB?
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 EHAB snapshot
As of May 15, 2026, spot at $13.79, ATM IV 205.60%, IV rank 58.88%, expected move 58.94%. The butterfly on EHAB 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 EHAB specifically: EHAB IV at 205.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 58.94% (roughly $8.13 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 EHAB expiries trade a higher absolute premium for lower per-day decay. Position sizing on EHAB should anchor to the underlying notional of $13.79 per share and to the trader's directional view on EHAB stock.
EHAB butterfly setup
The EHAB 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 EHAB near $13.79, the first option leg uses a $13.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EHAB 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 EHAB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.10 | N/A |
| Sell 2 | Call | $13.79 | N/A |
| Buy 1 | Call | $14.48 | N/A |
EHAB 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.
EHAB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EHAB. 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 EHAB
Butterflies on EHAB are pinning bets - traders use them when they expect EHAB 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.
EHAB thesis for this butterfly
The market-implied 1-standard-deviation range for EHAB extends from approximately $5.66 on the downside to $21.92 on the upside. A EHAB long call butterfly is a pinning play: it pays maximum at the middle strike if EHAB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EHAB IV rank near 58.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on EHAB should anchor more to the directional view and the expected-move geometry. As a Healthcare name, EHAB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EHAB-specific events.
EHAB 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. EHAB positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EHAB alongside the broader basket even when EHAB-specific fundamentals are unchanged. Always rebuild the position from current EHAB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EHAB?
- A butterfly on EHAB is the butterfly strategy applied to EHAB (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 EHAB stock trading near $13.79, the strikes shown on this page are snapped to the nearest listed EHAB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EHAB 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 EHAB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 205.60%), 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 EHAB butterfly?
- The breakeven for the EHAB 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 EHAB market-implied 1-standard-deviation expected move is approximately 58.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EHAB?
- Butterflies on EHAB are pinning bets - traders use them when they expect EHAB 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 EHAB implied volatility affect this butterfly?
- EHAB ATM IV is at 205.60% with IV rank near 58.88%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.