HNGE Butterfly Strategy
HNGE (Hinge Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Hinge Health, Inc. develops health care software for joint and muscle health. The company designs its platform to address a musculoskeletal care, acute injury, chronic pain, and post-surgical rehabilitation. It also provides various administrative and operations support services. The company was founded in 2012 and is headquartered in San Francisco, California.
HNGE (Hinge Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $4.18B, a beta of 1.65 versus the broader market, a 52-week range of 30.08-62.18, average daily share volume of 1.2M, a public-listing history dating back to 2025, approximately 2K 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 1.65 indicates HNGE 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 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.
Current HNGE snapshot
As of May 15, 2026, spot at $54.45, ATM IV 53.30%, IV rank 13.04%, expected move 15.28%. The butterfly on HNGE 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 HNGE specifically: HNGE IV at 53.30% 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 15.28% (roughly $8.32 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 HNGE expiries trade a higher absolute premium for lower per-day decay. Position sizing on HNGE should anchor to the underlying notional of $54.45 per share and to the trader's directional view on HNGE stock.
HNGE butterfly setup
The HNGE 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 HNGE near $54.45, the first option leg uses a $51.73 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 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 HNGE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $51.73 | N/A |
| Sell 2 | Call | $54.45 | N/A |
| Buy 1 | Call | $57.17 | N/A |
HNGE 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.
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.
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 $46.13 on the downside to $62.77 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 13.04% 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 53.30%. 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 trading near $54.45, the strikes shown on this page are snapped to the nearest listed HNGE chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 53.30%), 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 HNGE butterfly?
- The breakeven for the HNGE 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 HNGE market-implied 1-standard-deviation expected move is approximately 15.28%; 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 53.30% with IV rank near 13.04%, 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.