How are GH 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 GH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.60%), the computed maximum profit is $429.60 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GH butterfly?

The breakeven for the GH butterfly priced on this page is roughly $90.55 and $99.45 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 GH market-implied 1-standard-deviation expected move is approximately 17.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GH implied volatility affect this butterfly?

GH ATM IV is at 59.60% with IV rank near 14.84%, 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.

GH Butterfly Strategy

GH (Guardant Health, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

Guardant Health, Inc., a precision oncology company, provides blood tests, data sets, and analytics in the United States and internationally. The company offers Guardant360, Guardant360 LDT, Guardant360 CDx, and GuardantOMNI liquid biopsy-based tests for advanced stage cancer; and GuardantINFORM, an in-silico research platform that comprise a clinical-genomic liquid biopsy dataset of advanced cancer patients. It is also developing LUNAR-2 test for the early detection of colorectal cancer in asymptomatic individuals eligible; and GuardantConnect, an integrated software-based solution for clinical and biopharmaceutical customers seeking to connect patients tested with the Guardant360 assay with actionable alterations with potentially relevant clinical trials. In addition, the company offers Guardant Reveal Test for neoadjuvant and adjuvant treatment selection in early-stage cancer patients; Guardant360 tissue genotyping product; and Guardant-19 for use in the detection of the novel coronavirus. Further, it offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, and kits fulfillment related services to biopharmaceutical companies and medical institutions. The company was incorporated in 2011 and is headquartered in Redwood City, California.

GH (Guardant Health, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $13.06B, a beta of 1.49 versus the broader market, a 52-week range of 36.36-120.74, average daily share volume of 2.1M, a public-listing history dating back to 2018, approximately 2K full-time employees. These structural characteristics shape how GH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.49 indicates GH 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 GH?

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 GH snapshot

As of May 15, 2026, spot at $95.32, ATM IV 59.60%, IV rank 14.84%, expected move 17.09%. The butterfly on GH 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 63-day expiry.

Why this butterfly structure on GH specifically: GH IV at 59.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a GH butterfly, with a market-implied 1-standard-deviation move of approximately 17.09% (roughly $16.29 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GH expiries trade a higher absolute premium for lower per-day decay. Position sizing on GH should anchor to the underlying notional of $95.32 per share and to the trader's directional view on GH stock.

GH butterfly setup

The GH 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 GH near $95.32, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GH chain at a 63-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 GH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$90.00	$11.75
Sell 2	Call	$95.00	$9.20
Buy 1	Call	$100.00	$7.20

GH butterfly risk and reward

Net Premium / Debit: -$55.00
Max Profit (per contract): $429.60
Max Loss (per contract): -$55.00
Breakeven(s): $90.55, $99.45
Risk / Reward Ratio: 7.811

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.

GH butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on GH. 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%	-$55.00
$21.08	-77.9%	-$55.00
$42.16	-55.8%	-$55.00
$63.23	-33.7%	-$55.00
$84.31	-11.6%	-$55.00
$105.38	+10.6%	-$55.00
$126.46	+32.7%	-$55.00
$147.53	+54.8%	-$55.00
$168.61	+76.9%	-$55.00
$189.68	+99.0%	-$55.00

When traders use butterfly on GH

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

GH thesis for this butterfly

The market-implied 1-standard-deviation range for GH extends from approximately $79.03 on the downside to $111.61 on the upside. A GH long call butterfly is a pinning play: it pays maximum at the middle strike if GH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GH IV rank near 14.84% 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 GH at 59.60%. As a Healthcare name, GH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GH-specific events.

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

Frequently asked questions

What is a butterfly on GH?: A butterfly on GH is the butterfly strategy applied to GH (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 GH stock trading near $95.32, the strikes shown on this page are snapped to the nearest listed GH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GH 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 GH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.60%), the computed maximum profit is $429.60 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GH butterfly?: The breakeven for the GH butterfly priced on this page is roughly $90.55 and $99.45 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 GH market-implied 1-standard-deviation expected move is approximately 17.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GH?: Butterflies on GH are pinning bets - traders use them when they expect GH 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 GH implied volatility affect this butterfly?: GH ATM IV is at 59.60% with IV rank near 14.84%, 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.