GHRS Butterfly Strategy

GHRS (GH Research PLC), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

GH Research PLC, a clinical-stage biopharmaceutical company, engages in developing various therapies for the treatment of psychiatric and neurological disorders. The company focuses on developing 5-Methoxy-N,N-Dimethyltryptamine (5-MeO-DMT) therapies for the treatment of patients with treatment-resistant depression (TRD). Its lead program is GH001, an inhalable 5-MeO-DMT product candidate that has completed two Phase 1 clinical trials and Phase 1/2 clinical trial in patients with TRD. The company also develops GH002, an injectable 5-MeO-DMT product candidate; and GH003, an intranasal 5-MeO-DMT product candidate, which are in preclinical development trials with a focus on psychiatric and neurological disorders. GH Research PLC was incorporated in 2018 and is based in Dublin, Ireland.

GHRS (GH Research PLC) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.50B, a beta of 1.28 versus the broader market, a 52-week range of 9.52-24.66, average daily share volume of 218K, a public-listing history dating back to 2021, approximately 50 full-time employees. These structural characteristics shape how GHRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places GHRS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on GHRS?

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 GHRS snapshot

As of May 15, 2026, spot at $21.54, ATM IV 72.90%, IV rank 5.39%, expected move 20.90%. The butterfly on GHRS 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 GHRS specifically: GHRS IV at 72.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a GHRS butterfly, with a market-implied 1-standard-deviation move of approximately 20.90% (roughly $4.50 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 GHRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GHRS should anchor to the underlying notional of $21.54 per share and to the trader's directional view on GHRS stock.

GHRS butterfly setup

The GHRS 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 GHRS near $21.54, the first option leg uses a $20.46 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GHRS 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 GHRS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$20.46	N/A
Sell 2	Call	$21.54	N/A
Buy 1	Call	$22.62	N/A

GHRS 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.

GHRS butterfly payoff curve

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

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

GHRS thesis for this butterfly

The market-implied 1-standard-deviation range for GHRS extends from approximately $17.04 on the downside to $26.04 on the upside. A GHRS long call butterfly is a pinning play: it pays maximum at the middle strike if GHRS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GHRS IV rank near 5.39% 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 GHRS at 72.90%. As a Healthcare name, GHRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GHRS-specific events.

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

Frequently asked questions

What is a butterfly on GHRS?: A butterfly on GHRS is the butterfly strategy applied to GHRS (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 GHRS stock trading near $21.54, the strikes shown on this page are snapped to the nearest listed GHRS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GHRS 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 GHRS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 72.90%), 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 GHRS butterfly?: The breakeven for the GHRS 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 GHRS market-implied 1-standard-deviation expected move is approximately 20.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on GHRS?: Butterflies on GHRS are pinning bets - traders use them when they expect GHRS 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 GHRS implied volatility affect this butterfly?: GHRS ATM IV is at 72.90% with IV rank near 5.39%, 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.