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 end-of-day chain at a 30-day expiry (ATM IV 102.36%), the computed maximum profit is $30.99 per contract and the computed maximum loss is -$17.50 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 roughly $7.68 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 IBRX market-implied 1-standard-deviation expected move is approximately 29.35%; 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 102.36% with IV rank near 38.11%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

IBRX Butterfly Strategy

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

ImmunityBio, Inc., a clinical-stage biotechnology company, develops therapies and vaccines to treat cancers and infectious diseases. It offers immunotherapy and cell therapy platforms, including antibody cytokine fusion proteins, synthetic immunomodulators, vaccine technologies, natural killer cells, and adaptive (T cell) immune systems. The company also develops therapeutic agents, which are in Phase II or III clinical trial for the treatment of liquid and solid tumors, including bladder, pancreatic, and lung cancers, as well as pathogens as SARS-CoV-2 and HIV. It has collaboration agreements with National Cancer Institute, National Institute of Deafness and Communication Disorders, and Amyris, Inc.; and license agreements with CytRx Corporation, EnGeneIC Pty Limited, GlobeImmune, Inc., and Infectious Disease Research Institute, Sanford Health, Shenzhen Beike Biotechnology Co. Ltd., Sorrento Therapeutics, Inc., and Viracta Therapeutics, Inc. The company was founded in 2014 and is based in San Diego, California.

IBRX (ImmunityBio, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $8.54B, a beta of 0.07 versus the broader market, a 52-week range of 1.95-12.43, average daily share volume of 25.9M, a public-listing history dating back to 2015, approximately 671 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 0.07 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.

Current IBRX snapshot

As of May 15, 2026, spot at $7.94, ATM IV 102.36%, IV rank 38.11%, expected move 29.35%. The butterfly on IBRX 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 28-day expiry.

Why this butterfly structure on IBRX specifically: IBRX IV at 102.36% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 29.35% (roughly $2.33 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 $7.94 per share and to the trader's directional view on IBRX stock.

IBRX butterfly setup

The IBRX 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 IBRX near $7.94, the first option leg uses a $7.50 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	$7.50	$1.13
Sell 2	Call	$8.00	$0.85
Buy 1	Call	$8.50	$0.75

IBRX butterfly risk and reward

Net Premium / Debit: -$17.50
Max Profit (per contract): $30.99
Max Loss (per contract): -$17.50
Breakeven(s): $7.68
Risk / Reward Ratio: 1.771

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$17.50
$1.76	-77.8%	-$17.50
$3.52	-55.7%	-$17.50
$5.27	-33.6%	-$17.50
$7.03	-11.5%	-$17.50
$8.78	+10.6%	-$17.50
$10.54	+32.7%	-$17.50
$12.29	+54.8%	-$17.50
$14.05	+76.9%	-$17.50
$15.80	+99.0%	-$17.50

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 $5.61 on the downside to $10.27 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 38.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on IBRX should anchor more to the directional view and the expected-move geometry. 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 trading near $7.94, the strikes shown on this page are snapped to the nearest listed IBRX chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 102.36%), the computed maximum profit is $30.99 per contract and the computed maximum loss is -$17.50 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 roughly $7.68 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 IBRX market-implied 1-standard-deviation expected move is approximately 29.35%; 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 102.36% with IV rank near 38.11%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.