HNGE Butterfly Strategy
HNGE (Hinge Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Established in 2012 and headquartered in San Francisco, California, Hinge Health, Inc. creates specialized healthcare software solutions for musculoskeletal and joint health. Their advanced platform is designed to comprehensively manage a spectrum of needs, including general musculoskeletal care, acute injuries, persistent chronic pain, and post-operative rehabilitation. Furthermore, the company provides essential administrative and operational assistance.
HNGE (Hinge Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $6.68B, a trailing P/E of 62.36, a beta of 1.29 versus the broader market, a 52-week range of 30.08-93.13, average daily share volume of 1.7M, a public-listing history dating back to 2025, approximately 1K full-time employees. These structural characteristics shape how HNGE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places HNGE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 62.36 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on HNGE?
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.
HNGE snapshot
As of August 14, 2026, spot at $88.41, ATM IV 49.00%, IV rank 8.87%, expected move 14.05%. The butterfly on HNGE below is built from the August 14, 2026 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 HNGE specifically: HNGE IV at 49.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a HNGE butterfly, with a market-implied 1-standard-deviation move of approximately 14.05% (roughly $12.42 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 HNGE expiries trade a higher absolute premium for lower per-day decay. Position sizing on HNGE should anchor to the underlying notional of $88.41 per share and to the trader's directional view on HNGE stock.
HNGE butterfly setup
The HNGE butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HNGE at $88.41 on that close, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HNGE 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 HNGE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $85.00 | $6.90 |
| Sell 2 | Call | $90.00 | $4.95 |
| Buy 1 | Call | $95.00 | $3.03 |
HNGE butterfly risk and reward
- Net Premium / Debit
- -$2.50
- Max Profit (per contract)
- $472.27
- Max Loss (per contract)
- -$2.50
- Breakeven(s)
- $84.49, $95.05
- Risk / Reward Ratio
- 188.910
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.
HNGE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HNGE. 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% | -$2.50 |
| $19.56 | -77.9% | -$2.50 |
| $39.10 | -55.8% | -$2.50 |
| $58.65 | -33.7% | -$2.50 |
| $78.20 | -11.6% | -$2.50 |
| $97.74 | +10.6% | -$2.50 |
| $117.29 | +32.7% | -$2.50 |
| $136.84 | +54.8% | -$2.50 |
| $156.38 | +76.9% | -$2.50 |
| $175.93 | +99.0% | -$2.50 |
When traders use butterfly on HNGE
Butterflies on HNGE are pinning bets - traders use them when they expect HNGE 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.
HNGE thesis for this butterfly
The market-implied 1-standard-deviation range for HNGE extends from approximately $75.99 on the downside to $100.83 on the upside. A HNGE long call butterfly is a pinning play: it pays maximum at the middle strike if HNGE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HNGE IV rank near 8.87% 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 HNGE at 49.00%. As a Healthcare name, HNGE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HNGE-specific events.
HNGE 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. HNGE positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HNGE alongside the broader basket even when HNGE-specific fundamentals are unchanged. Always rebuild the position from current HNGE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HNGE?
- A butterfly on HNGE is the butterfly strategy applied to HNGE (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 HNGE stock at $88.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HNGE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HNGE 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 HNGE butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.00%), the computed maximum profit is $472.27 per contract and the computed maximum loss is -$2.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HNGE butterfly?
- The breakeven for the HNGE butterfly priced on this page is roughly $84.49 and $95.05 at expiration, derived from the August 14, 2026 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 HNGE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HNGE?
- Butterflies on HNGE are pinning bets - traders use them when they expect HNGE 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 HNGE implied volatility affect this butterfly?
- HNGE ATM IV is at 49.00% with IV rank near 8.87%, 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.