GYRE Butterfly Strategy
GYRE (Gyre Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Gyre Therapeutics, Inc. is a pharmaceutical company dedicated to discovering, advancing, and bringing to market small-molecule drugs that target inflammation and fibrosis in various organs. The company's key anti-fibrotic medication, ETUARY (Pirfenidone), has received approval for treating idiopathic pulmonary fibrosis. Beyond this, ETUARY is also undergoing late-stage (Phase 3) clinical trials for several other conditions, including dermatomyositis and interstitial lung disease linked to systemic sclerosis, pneumoconiosis, and diabetic kidney disease. The company's pipeline further includes F351 (Hydronidone), a compound structurally related to ETUARY. F351 is currently in Phase 3 studies for chronic hepatitis B-induced liver fibrosis and is in Phase 1 trials for liver fibrosis associated with nonalcoholic associated steatohepatitis (NASH). Other programs in development feature F573, which is progressing through Phase 2 studies for acute and acute-on-chronic liver failure.
GYRE (Gyre Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $574.8M, a beta of 4.92 versus the broader market, a 52-week range of 5.44-9.42, average daily share volume of 81K, a public-listing history dating back to 2006, approximately 579 full-time employees. These structural characteristics shape how GYRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.92 indicates GYRE 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 GYRE?
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 GYRE snapshot
As of June 29, 2026, spot at $6.44, ATM IV 254.30%, IV rank 49.62%, expected move 72.91%. The butterfly on GYRE 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 18-day expiry.
Why this butterfly structure on GYRE specifically: GYRE IV at 254.30% 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 72.91% (roughly $4.70 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GYRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GYRE should anchor to the underlying notional of $6.44 per share and to the trader's directional view on GYRE stock.
GYRE butterfly setup
The GYRE 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 GYRE near $6.44, the first option leg uses a $6.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GYRE chain at a 18-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 GYRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.12 | N/A |
| Sell 2 | Call | $6.44 | N/A |
| Buy 1 | Call | $6.76 | N/A |
GYRE 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.
GYRE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GYRE. 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 GYRE
Butterflies on GYRE are pinning bets - traders use them when they expect GYRE 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.
GYRE thesis for this butterfly
The market-implied 1-standard-deviation range for GYRE extends from approximately $1.74 on the downside to $11.14 on the upside. A GYRE long call butterfly is a pinning play: it pays maximum at the middle strike if GYRE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GYRE IV rank near 49.62% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on GYRE should anchor more to the directional view and the expected-move geometry. As a Healthcare name, GYRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GYRE-specific events.
GYRE 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. GYRE positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GYRE alongside the broader basket even when GYRE-specific fundamentals are unchanged. Always rebuild the position from current GYRE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GYRE?
- A butterfly on GYRE is the butterfly strategy applied to GYRE (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 GYRE stock trading near $6.44, the strikes shown on this page are snapped to the nearest listed GYRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GYRE 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 GYRE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 254.30%), 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 GYRE butterfly?
- The breakeven for the GYRE 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 GYRE market-implied 1-standard-deviation expected move is approximately 72.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GYRE?
- Butterflies on GYRE are pinning bets - traders use them when they expect GYRE 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 GYRE implied volatility affect this butterfly?
- GYRE ATM IV is at 254.30% with IV rank near 49.62%, 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.