GDRX Butterfly Strategy
GDRX (GoodRx Holdings, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
GoodRx Holdings, Inc., through its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices through GoodRx codes that are used to save money on prescriptions across the United States. It also offers other healthcare products and services, including subscriptions, pharma manufacturer solutions, and telehealth services. It serves pharmacy benefit managers that manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was incorporated in 2015 and is headquartered in Santa Monica, California.
GDRX (GoodRx Holdings, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $904.7M, a trailing P/E of 30.13, a beta of 1.55 versus the broader market, a 52-week range of 1.77-5.81, average daily share volume of 2.4M, a public-listing history dating back to 2020, approximately 738 full-time employees. These structural characteristics shape how GDRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.55 indicates GDRX 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 GDRX?
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 GDRX snapshot
As of May 15, 2026, spot at $2.46, ATM IV 263.90%, IV rank 52.46%, expected move 75.66%. The butterfly on GDRX 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 GDRX specifically: GDRX IV at 263.90% 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 75.66% (roughly $1.86 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 GDRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on GDRX should anchor to the underlying notional of $2.46 per share and to the trader's directional view on GDRX stock.
GDRX butterfly setup
The GDRX 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 GDRX near $2.46, the first option leg uses a $2.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GDRX 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 GDRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.34 | N/A |
| Sell 2 | Call | $2.46 | N/A |
| Buy 1 | Call | $2.58 | N/A |
GDRX 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.
GDRX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GDRX. 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 GDRX
Butterflies on GDRX are pinning bets - traders use them when they expect GDRX 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.
GDRX thesis for this butterfly
The market-implied 1-standard-deviation range for GDRX extends from approximately $0.60 on the downside to $4.32 on the upside. A GDRX long call butterfly is a pinning play: it pays maximum at the middle strike if GDRX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GDRX IV rank near 52.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GDRX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, GDRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GDRX-specific events.
GDRX 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. GDRX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GDRX alongside the broader basket even when GDRX-specific fundamentals are unchanged. Always rebuild the position from current GDRX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GDRX?
- A butterfly on GDRX is the butterfly strategy applied to GDRX (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 GDRX stock trading near $2.46, the strikes shown on this page are snapped to the nearest listed GDRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GDRX 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 GDRX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 263.90%), 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 GDRX butterfly?
- The breakeven for the GDRX 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 GDRX market-implied 1-standard-deviation expected move is approximately 75.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GDRX?
- Butterflies on GDRX are pinning bets - traders use them when they expect GDRX 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 GDRX implied volatility affect this butterfly?
- GDRX ATM IV is at 263.90% with IV rank near 52.46%, 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.