GALT Butterfly Strategy
GALT (Galectin Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Galectin Therapeutics Inc. is a biopharmaceutical company in the clinical development phase, dedicated to discovering and advancing new therapies for a spectrum of illnesses, including fibrotic disorders and various cancers. The company's flagship therapeutic agent is belapectin (GR-MD-02), an inhibitor of galectin-3, which is a complex polysaccharide polymer. This compound is currently undergoing Phase III clinical trials, assessing its effectiveness in treating liver scarring linked to fatty liver disease and non-alcoholic steatohepatitis (NASH) cirrhosis, alongside its potential for cancer treatment. Beyond belapectin, Galectin Therapeutics is progressing GM-CT-01 through preclinical stages for the management of cardiac and vascular fibrosis. The company is also actively exploring additional uses for belapectin in conditions like psoriasis, lung fibrosis, and kidney fibrosis. Furthermore, through Galectin Sciences, LLC – a joint venture established with SBH Sciences, Inc. – the firm is involved in researching and developing small organic molecules designed to block galectin-3, intended for oral administration.
GALT (Galectin Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $206.8M, a beta of 0.35 versus the broader market, a 52-week range of 2.03-7.13, average daily share volume of 562K, a public-listing history dating back to 2002, approximately 9 full-time employees. These structural characteristics shape how GALT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.35 indicates GALT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on GALT?
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.
GALT snapshot
As of August 14, 2026, spot at $3.46, ATM IV 110.10%, IV rank 24.17%, expected move 31.56%. The butterfly on GALT below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on GALT specifically: GALT IV at 110.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a GALT butterfly, with a market-implied 1-standard-deviation move of approximately 31.56% (roughly $1.09 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GALT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GALT should anchor to the underlying notional of $3.46 per share and to the trader's directional view on GALT stock.
GALT butterfly setup
The GALT 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 GALT at $3.46 on that close, the first option leg uses a $3.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GALT chain at a 35-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 GALT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.29 | N/A |
| Sell 2 | Call | $3.46 | N/A |
| Buy 1 | Call | $3.63 | N/A |
GALT 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.
GALT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GALT. 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 GALT
Butterflies on GALT are pinning bets - traders use them when they expect GALT 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.
GALT thesis for this butterfly
The market-implied 1-standard-deviation range for GALT extends from approximately $2.37 on the downside to $4.55 on the upside. A GALT long call butterfly is a pinning play: it pays maximum at the middle strike if GALT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GALT IV rank near 24.17% 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 GALT at 110.10%. As a Healthcare name, GALT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GALT-specific events.
GALT 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. GALT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GALT alongside the broader basket even when GALT-specific fundamentals are unchanged. Always rebuild the position from current GALT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GALT?
- A butterfly on GALT is the butterfly strategy applied to GALT (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 GALT stock at $3.46 on the most recent close, the strikes shown on this page are snapped to the nearest listed GALT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GALT 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 GALT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 110.10%), 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 GALT butterfly?
- The breakeven for the GALT butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 GALT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 31.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GALT?
- Butterflies on GALT are pinning bets - traders use them when they expect GALT 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 GALT implied volatility affect this butterfly?
- GALT ATM IV is at 110.10% with IV rank near 24.17%, 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.