How are IBRX 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 IBRX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 71.40%), the computed maximum profit is $55.29 per contract and the computed maximum loss is $6.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IBRX butterfly?

The breakeven for the IBRX butterfly priced on this page is no defined breakeven on the modeled curve 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 IBRX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IBRX implied volatility affect this butterfly?

IBRX ATM IV is at 71.40% with IV rank near 27.86%, 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.

IBRX Butterfly Strategy

IBRX (ImmunityBio, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

ImmunityBio, Inc. is a clinical-stage biotechnology firm, founded in 2014 and based in San Diego, California. The company is focused on developing groundbreaking therapies and vaccines designed to treat a wide array of cancers and infectious diseases. Its innovative approach relies on a comprehensive suite of immunotherapy and cell therapy platforms. These advanced technologies include novel antibody-cytokine fusion proteins, synthetically engineered immunomodulators, cutting-edge vaccine technologies, natural killer (NK) cell therapies, and strategies that harness the adaptive (T-cell) immune system. ImmunityBio currently has several therapeutic candidates in advanced clinical development, with agents undergoing Phase II or III trials. These investigational treatments are aimed at various liquid and solid tumors, such as bladder, pancreatic, and lung cancers, as well as significant infectious pathogens including SARS-CoV-2 and HIV.

IBRX (ImmunityBio, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $8.11B, a beta of 0.13 versus the broader market, a 52-week range of 1.95-12.43, average daily share volume of 13.0M, a public-listing history dating back to 2015, approximately 688 full-time employees. These structural characteristics shape how IBRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.13 indicates IBRX 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 IBRX?

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.

IBRX snapshot

As of August 14, 2026, spot at $7.54, ATM IV 71.40%, IV rank 27.86%, expected move 20.47%. The butterfly on IBRX 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 28-day expiry.

Why this butterfly structure on IBRX specifically: IBRX IV at 71.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a IBRX butterfly, with a market-implied 1-standard-deviation move of approximately 20.47% (roughly $1.54 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IBRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IBRX should anchor to the underlying notional of $7.54 per share and to the trader's directional view on IBRX stock.

IBRX butterfly setup

The IBRX 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 IBRX at $7.54 on that close, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IBRX chain at a 28-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 IBRX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$7.00	$0.95
Sell 2	Call	$7.50	$0.75
Buy 1	Call	$8.00	$0.49

IBRX butterfly risk and reward

Net Premium / Debit: +$6.00
Max Profit (per contract): $55.29
Max Loss (per contract): $6.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 9.214

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.

IBRX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on IBRX. 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	-99.9%	+$6.00
$1.68	-77.8%	+$6.00
$3.34	-55.7%	+$6.00
$5.01	-33.6%	+$6.00
$6.67	-11.5%	+$6.00
$8.34	+10.6%	+$6.00
$10.01	+32.7%	+$6.00
$11.67	+54.8%	+$6.00
$13.34	+76.9%	+$6.00
$15.00	+99.0%	+$6.00

When traders use butterfly on IBRX

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

IBRX thesis for this butterfly

The market-implied 1-standard-deviation range for IBRX extends from approximately $6.00 on the downside to $9.08 on the upside. A IBRX long call butterfly is a pinning play: it pays maximum at the middle strike if IBRX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IBRX IV rank near 27.86% 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 IBRX at 71.40%. As a Healthcare name, IBRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IBRX-specific events.

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

Frequently asked questions

What is a butterfly on IBRX?: A butterfly on IBRX is the butterfly strategy applied to IBRX (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 IBRX stock at $7.54 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IBRX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IBRX 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 IBRX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 71.40%), the computed maximum profit is $55.29 per contract and the computed maximum loss is $6.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IBRX butterfly?: The breakeven for the IBRX butterfly priced on this page is no defined breakeven on the modeled curve 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 IBRX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on IBRX?: Butterflies on IBRX are pinning bets - traders use them when they expect IBRX 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 IBRX implied volatility affect this butterfly?: IBRX ATM IV is at 71.40% with IV rank near 27.86%, 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.