How are HROW 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 HROW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 64.90%), the computed maximum profit is $170.99 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HROW butterfly?

The breakeven for the HROW butterfly priced on this page is roughly $40.26 and $43.74 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 HROW market-implied 1-standard-deviation expected move is approximately 18.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HROW implied volatility affect this butterfly?

HROW ATM IV is at 64.90% with IV rank near 17.89%, 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.

HROW Butterfly Strategy

HROW (Harrow Health, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Harrow Health, Inc. operates as a healthcare enterprise with a specialized focus on ophthalmic solutions. The company's portfolio includes ImprimisRx, a business dedicated to ophthalmology outsourcing and pharmaceutical compounding, as well as DEXYCU, a product utilized for managing post-operative inflammation. Beyond its direct offerings, Harrow Health maintains equity investments in several pharmaceutical ventures. These encompass Surface Ophthalmics, Inc., a clinical-stage firm actively developing and commercializing therapeutic agents for ocular surface diseases; Melt Pharmaceuticals, Inc., another clinical-stage entity concentrating on proprietary non-intravenous sedation and anesthesia treatments for various medical procedures conducted in hospital, outpatient, and office environments; and Eton Pharmaceuticals, Inc., a commercial-stage company involved in the creation and market launch of drug products. Moreover, Harrow Health holds royalty interests in four investigational drug candidates currently being advanced by Surface Ophthalmics, Inc. and Melt Pharmaceuticals, Inc. The company, initially incorporated in 2006 and based in San Diego, California, underwent a name change from Imprimis Pharmaceuticals, Inc. to Harrow Health, Inc. in December 2018.

HROW (Harrow Health, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $1.57B, a beta of 0.28 versus the broader market, a 52-week range of 28.54-54.85, average daily share volume of 774K, a public-listing history dating back to 2007, approximately 382 full-time employees. These structural characteristics shape how HROW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.28 indicates HROW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on HROW?

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 HROW snapshot

As of June 29, 2026, spot at $41.77, ATM IV 64.90%, IV rank 17.89%, expected move 18.61%. The butterfly on HROW 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 HROW specifically: HROW IV at 64.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a HROW butterfly, with a market-implied 1-standard-deviation move of approximately 18.61% (roughly $7.77 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 HROW expiries trade a higher absolute premium for lower per-day decay. Position sizing on HROW should anchor to the underlying notional of $41.77 per share and to the trader's directional view on HROW stock.

HROW butterfly setup

The HROW 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 HROW near $41.77, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HROW 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 HROW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$40.00	$3.03
Sell 2	Call	$42.00	$2.28
Buy 1	Call	$44.00	$1.80

HROW butterfly risk and reward

Net Premium / Debit: -$27.50
Max Profit (per contract): $170.99
Max Loss (per contract): -$27.50
Breakeven(s): $40.26, $43.74
Risk / Reward Ratio: 6.218

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.

HROW butterfly payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$27.50
$9.24	-77.9%	-$27.50
$18.48	-55.8%	-$27.50
$27.71	-33.7%	-$27.50
$36.95	-11.5%	-$27.50
$46.18	+10.6%	-$27.50
$55.42	+32.7%	-$27.50
$64.65	+54.8%	-$27.50
$73.89	+76.9%	-$27.50
$83.12	+99.0%	-$27.50

When traders use butterfly on HROW

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

HROW thesis for this butterfly

The market-implied 1-standard-deviation range for HROW extends from approximately $34.00 on the downside to $49.54 on the upside. A HROW long call butterfly is a pinning play: it pays maximum at the middle strike if HROW settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HROW IV rank near 17.89% 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 HROW at 64.90%. As a Healthcare name, HROW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HROW-specific events.

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

Frequently asked questions

What is a butterfly on HROW?: A butterfly on HROW is the butterfly strategy applied to HROW (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 HROW stock trading near $41.77, the strikes shown on this page are snapped to the nearest listed HROW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HROW 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 HROW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 64.90%), the computed maximum profit is $170.99 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HROW butterfly?: The breakeven for the HROW butterfly priced on this page is roughly $40.26 and $43.74 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 HROW market-implied 1-standard-deviation expected move is approximately 18.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HROW?: Butterflies on HROW are pinning bets - traders use them when they expect HROW 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 HROW implied volatility affect this butterfly?: HROW ATM IV is at 64.90% with IV rank near 17.89%, 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.