How are FDMT 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 FDMT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 473.60%), the computed maximum profit is $43.50 per contract and the computed maximum loss is -$56.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDMT butterfly?

The breakeven for the FDMT butterfly priced on this page is roughly $13.44 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 FDMT market-implied 1-standard-deviation expected move is approximately 135.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FDMT implied volatility affect this butterfly?

FDMT ATM IV is at 473.60% with IV rank near 97.40%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

FDMT Butterfly Strategy

FDMT (4D Molecular Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

4D Molecular Therapeutics, Inc. is a clinical-stage gene therapy company that engineers therapeutic agents by leveraging its proprietary adeno-associated virus (AAV) vector technology. The company's developmental efforts are concentrated across a trio of therapeutic fields: ophthalmology (eye conditions), cardiology (heart ailments), and pulmonology (respiratory disorders). Within its active pipeline, three specific product candidates have advanced into clinical trial phases, all currently undergoing Phase 1/2 clinical assessment: 4D-125 is being evaluated for the treatment of X-linked retinitis pigmentosa. 4D-110 targets choroideremia. 4D-310 is focused on addressing Fabry disease. Beyond these, two Investigational New Drug (IND) candidates are in development: 4D-150, aimed at combating wet age-related macular degeneration, and 4D-710, designed to tackle cystic fibrosis lung disease. To advance its mission, 4D Molecular Therapeutics, Inc. actively engages in research and development partnerships with entities such as uniQure, CRF, Roche, and CFF. The firm commenced operations in 2013 and maintains its headquarters in Emeryville, California.

FDMT (4D Molecular Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $606.4M, a beta of 2.76 versus the broader market, a 52-week range of 3.68-12.34, average daily share volume of 818K, a public-listing history dating back to 2020, approximately 227 full-time employees. These structural characteristics shape how FDMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.76 indicates FDMT 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 FDMT?

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 FDMT snapshot

As of June 30, 2026, spot at $13.30, ATM IV 473.60%, IV rank 97.40%, expected move 135.78%. The butterfly on FDMT 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 17-day expiry.

Why this butterfly structure on FDMT specifically: FDMT IV at 473.60% is rich versus its 1-year range, which makes a premium-buying FDMT butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 135.78% (roughly $18.06 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDMT should anchor to the underlying notional of $13.30 per share and to the trader's directional view on FDMT stock.

FDMT butterfly setup

The FDMT 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 FDMT near $13.30, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDMT chain at a 17-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 FDMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$13.00	$1.38
Sell 2	Call	$13.00	$1.38
Buy 1	Call	$14.00	$0.94

FDMT butterfly risk and reward

Net Premium / Debit: +$43.50
Max Profit (per contract): $43.50
Max Loss (per contract): -$56.50
Breakeven(s): $13.44
Risk / Reward Ratio: 0.770

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.

FDMT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FDMT. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$43.50
$2.95	-77.8%	+$43.50
$5.89	-55.7%	+$43.50
$8.83	-33.6%	+$43.50
$11.77	-11.5%	+$43.50
$14.71	+10.6%	-$56.50
$17.65	+32.7%	-$56.50
$20.59	+54.8%	-$56.50
$23.53	+76.9%	-$56.50
$26.47	+99.0%	-$56.50

When traders use butterfly on FDMT

Butterflies on FDMT are pinning bets - traders use them when they expect FDMT 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.

FDMT thesis for this butterfly

The market-implied 1-standard-deviation range for FDMT extends from approximately $-4.76 on the downside to $31.36 on the upside. A FDMT long call butterfly is a pinning play: it pays maximum at the middle strike if FDMT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FDMT IV rank near 97.40% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on FDMT at 473.60%. As a Healthcare name, FDMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDMT-specific events.

FDMT 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. FDMT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDMT alongside the broader basket even when FDMT-specific fundamentals are unchanged. Always rebuild the position from current FDMT chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on FDMT?: A butterfly on FDMT is the butterfly strategy applied to FDMT (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 FDMT stock trading near $13.30, the strikes shown on this page are snapped to the nearest listed FDMT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FDMT 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 FDMT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 473.60%), the computed maximum profit is $43.50 per contract and the computed maximum loss is -$56.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDMT butterfly?: The breakeven for the FDMT butterfly priced on this page is roughly $13.44 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 FDMT market-implied 1-standard-deviation expected move is approximately 135.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FDMT?: Butterflies on FDMT are pinning bets - traders use them when they expect FDMT 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 FDMT implied volatility affect this butterfly?: FDMT ATM IV is at 473.60% with IV rank near 97.40%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.