FBRX Butterfly Strategy
FBRX (Forte Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Forte Biosciences, Inc. is a U.S.-based biopharmaceutical company currently in its clinical development phase. The firm's key initiative involves advancing the FB-102 program, which is designed to tackle a variety of autoimmune conditions, notably vitiligo and alopecia areata. Their main offices are situated in Dallas, Texas.
FBRX (Forte Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.57B, a beta of 2.65 versus the broader market, a 52-week range of 9.91-77.2, average daily share volume of 836K, a public-listing history dating back to 2017, approximately 22 full-time employees. These structural characteristics shape how FBRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.65 indicates FBRX 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 FBRX?
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.
FBRX snapshot
As of August 14, 2026, spot at $76.85, ATM IV 15.70%, IV rank 1.39%, expected move 4.50%. The butterfly on FBRX 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 FBRX specifically: FBRX IV at 15.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a FBRX butterfly, with a market-implied 1-standard-deviation move of approximately 4.50% (roughly $3.46 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 FBRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FBRX should anchor to the underlying notional of $76.85 per share and to the trader's directional view on FBRX stock.
FBRX butterfly setup
The FBRX 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 FBRX at $76.85 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FBRX 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 FBRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $75.00 | $2.37 |
| Sell 2 | Call | $75.00 | $2.37 |
| Buy 1 | Call | $80.00 | $0.36 |
FBRX butterfly risk and reward
- Net Premium / Debit
- +$201.00
- Max Profit (per contract)
- $201.00
- Max Loss (per contract)
- -$299.00
- Breakeven(s)
- $77.01
- Risk / Reward Ratio
- 0.672
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.
FBRX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FBRX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$201.00 |
| $17.00 | -77.9% | +$201.00 |
| $33.99 | -55.8% | +$201.00 |
| $50.98 | -33.7% | +$201.00 |
| $67.97 | -11.6% | +$201.00 |
| $84.96 | +10.6% | -$299.00 |
| $101.96 | +32.7% | -$299.00 |
| $118.95 | +54.8% | -$299.00 |
| $135.94 | +76.9% | -$299.00 |
| $152.93 | +99.0% | -$299.00 |
When traders use butterfly on FBRX
Butterflies on FBRX are pinning bets - traders use them when they expect FBRX 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.
FBRX thesis for this butterfly
The market-implied 1-standard-deviation range for FBRX extends from approximately $73.39 on the downside to $80.31 on the upside. A FBRX long call butterfly is a pinning play: it pays maximum at the middle strike if FBRX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FBRX IV rank near 1.39% 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 FBRX at 15.70%. As a Healthcare name, FBRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FBRX-specific events.
FBRX 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. FBRX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FBRX alongside the broader basket even when FBRX-specific fundamentals are unchanged. Always rebuild the position from current FBRX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FBRX?
- A butterfly on FBRX is the butterfly strategy applied to FBRX (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 FBRX stock at $76.85 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FBRX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FBRX 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 FBRX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 15.70%), the computed maximum profit is $201.00 per contract and the computed maximum loss is -$299.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FBRX butterfly?
- The breakeven for the FBRX butterfly priced on this page is roughly $77.01 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 FBRX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FBRX?
- Butterflies on FBRX are pinning bets - traders use them when they expect FBRX 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 FBRX implied volatility affect this butterfly?
- FBRX ATM IV is at 15.70% with IV rank near 1.39%, 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.