FBIO Butterfly Strategy
FBIO (Fortress Biotech, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Fortress Biotech, Inc., a biopharmaceutical company, develops and commercializes pharmaceutical and biotechnology products. The company markets dermatology products, such as Ximino capsules to treat only inflammatory lesions of non-nodular moderate to severe acne vulgaris; Targadox for severe acne; Exelderm cream for ringworm and jock itch symptoms; Ceracade for dry skin conditions; Luxamend for dressing and managing wounds; and Accutane capsules for severe recalcitrant nodular acne. It also develops late stage product candidates, such as intravenous Tramadol for the treatment of post-operative acute pain; CUTX-101, an injection for the treatment of Menkes disease; MB-107 and MB-207 for the treatment of X-linked severe combined immunodeficiency; Cosibelimab for metastatic cancers; CK-101 for the treatment of patients with EGFR mutation-positive NSCLC; CAEL-101 for the treatment of amyloid light chain amyloidosis; Triplex vaccine for cytomegalovirus; and CEVA101 for the treatment of severe traumatic brain injury in adults and children. The company's early stage product candidates include MB-102 for blastic plasmacytoid dendritic cell neoplasm; MB-101 for glioblastoma; MB-104 for multiple myeloma and light chain amyloidosis; MB-106 for B-cell non-hodgkin lymphoma; MB-103 for GBM & metastatic breast cancer to brain; MB-108; MB-105 for prostate and pancreatic cancers; and BAER-101. Its preclinical product candidates comprise AAV-ATP7A gene therapy; AVTS-001 gene therapy; CK-103 BET inhibitor; CEVA-D and CEVA-102; CK-302, an anti-GITR; CK-303, an anti-CAIX; ConVax; and ONCOlogues, and oligonucleotide platform. It has collaboration arrangements with universities, research institutes, and pharmaceutical companies.
FBIO (Fortress Biotech, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $71.8M, a trailing P/E of 9.13, a beta of 1.16 versus the broader market, a 52-week range of 1.66-4.53, average daily share volume of 683K, a public-listing history dating back to 2011, approximately 101 full-time employees. These structural characteristics shape how FBIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places FBIO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 9.13 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on FBIO?
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 FBIO snapshot
As of May 15, 2026, spot at $2.40, ATM IV 251.60%, IV rank 47.70%, expected move 72.13%. The butterfly on FBIO 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 FBIO specifically: FBIO IV at 251.60% 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 72.13% (roughly $1.73 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 FBIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on FBIO should anchor to the underlying notional of $2.40 per share and to the trader's directional view on FBIO stock.
FBIO butterfly setup
The FBIO 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 FBIO near $2.40, the first option leg uses a $2.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FBIO 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 FBIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.28 | N/A |
| Sell 2 | Call | $2.40 | N/A |
| Buy 1 | Call | $2.52 | N/A |
FBIO 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.
FBIO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FBIO. 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 FBIO
Butterflies on FBIO are pinning bets - traders use them when they expect FBIO 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.
FBIO thesis for this butterfly
The market-implied 1-standard-deviation range for FBIO extends from approximately $0.67 on the downside to $4.13 on the upside. A FBIO long call butterfly is a pinning play: it pays maximum at the middle strike if FBIO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FBIO IV rank near 47.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FBIO should anchor more to the directional view and the expected-move geometry. As a Healthcare name, FBIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FBIO-specific events.
FBIO 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. FBIO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FBIO alongside the broader basket even when FBIO-specific fundamentals are unchanged. Always rebuild the position from current FBIO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FBIO?
- A butterfly on FBIO is the butterfly strategy applied to FBIO (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 FBIO stock trading near $2.40, the strikes shown on this page are snapped to the nearest listed FBIO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FBIO 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 FBIO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 251.60%), 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 FBIO butterfly?
- The breakeven for the FBIO 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 FBIO market-implied 1-standard-deviation expected move is approximately 72.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FBIO?
- Butterflies on FBIO are pinning bets - traders use them when they expect FBIO 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 FBIO implied volatility affect this butterfly?
- FBIO ATM IV is at 251.60% with IV rank near 47.70%, 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.