HUMA Butterfly Strategy
HUMA (Humacyte, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Humacyte, Inc. engages in the development and manufacture of off-the-shelf, implantable, and bioengineered human tissues for the treatment of diseases and conditions across a range of anatomic locations in multiple therapeutic areas. The company using its proprietary and scientific technology platform to engineer and manufacture human acellular vessels (HAVs). Its investigational HAVs are designed to be easily implanted into any patient without inducing a foreign body response or leading to immune rejection. The company is developing a portfolio of HAVs, which would target the vascular repair, reconstruction, and replacement market, including vascular trauma; arteriovenous access for hemodialysis; peripheral arterial disease; and coronary artery bypass grafting, as well as developing its HAVs for pediatric heart surgery and cellular therapy delivery, including pancreatic islet cell transplantation to treat Type 1 diabetes. The company was founded in 2004 and is headquartered in Durham, North Carolina.
HUMA (Humacyte, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $177.1M, a beta of 2.31 versus the broader market, a 52-week range of 0.547-2.93, average daily share volume of 6.5M, a public-listing history dating back to 2020, approximately 218 full-time employees. These structural characteristics shape how HUMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.31 indicates HUMA 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 HUMA?
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 HUMA snapshot
As of May 15, 2026, spot at $0.94, ATM IV 139.00%, IV rank 27.07%, expected move 39.85%. The butterfly on HUMA 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 HUMA specifically: HUMA IV at 139.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a HUMA butterfly, with a market-implied 1-standard-deviation move of approximately 39.85% (roughly $0.37 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 HUMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUMA should anchor to the underlying notional of $0.94 per share and to the trader's directional view on HUMA stock.
HUMA butterfly setup
The HUMA 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 HUMA near $0.94, the first option leg uses a $0.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUMA 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 HUMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.89 | N/A |
| Sell 2 | Call | $0.94 | N/A |
| Buy 1 | Call | $0.99 | N/A |
HUMA 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.
HUMA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HUMA. 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 HUMA
Butterflies on HUMA are pinning bets - traders use them when they expect HUMA 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.
HUMA thesis for this butterfly
The market-implied 1-standard-deviation range for HUMA extends from approximately $0.57 on the downside to $1.31 on the upside. A HUMA long call butterfly is a pinning play: it pays maximum at the middle strike if HUMA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HUMA IV rank near 27.07% 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 HUMA at 139.00%. As a Healthcare name, HUMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUMA-specific events.
HUMA 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. HUMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUMA alongside the broader basket even when HUMA-specific fundamentals are unchanged. Always rebuild the position from current HUMA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HUMA?
- A butterfly on HUMA is the butterfly strategy applied to HUMA (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 HUMA stock trading near $0.94, the strikes shown on this page are snapped to the nearest listed HUMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HUMA 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 HUMA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 139.00%), 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 HUMA butterfly?
- The breakeven for the HUMA 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 HUMA market-implied 1-standard-deviation expected move is approximately 39.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HUMA?
- Butterflies on HUMA are pinning bets - traders use them when they expect HUMA 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 HUMA implied volatility affect this butterfly?
- HUMA ATM IV is at 139.00% with IV rank near 27.07%, 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.