IDYA Butterfly Strategy
IDYA (IDEAYA Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
IDEAYA Biosciences, Inc. is a precision oncology company primarily dedicated to identifying and advancing targeted therapies, particularly leveraging the concept of synthetic lethality. The firm aims to develop specific treatments for patient groups selected through molecular diagnostic methods. At the forefront of its clinical efforts are two investigational drugs. IDE397, a methionine adenosyltransferase 2a (MAT2A) blocking agent, is currently in early-stage (Phase I) trials for solid tumors exhibiting methylthioadenosine phosphorylase (MTAP) deletions. Its second primary candidate, IDE196, a protein kinase C (PKC) inhibitor, is progressing through Phase I/II studies, targeting genetically defined cancers characterized by GNAQ or GNA11 gene mutations. Beyond its clinical pipeline, IDEAYA's earlier-stage portfolio includes several synthetic lethality programs.
IDYA (IDEAYA Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.49B, a beta of -0.05 versus the broader market, a 52-week range of 20.5-39.28, average daily share volume of 1.4M, a public-listing history dating back to 2019, approximately 131 full-time employees. These structural characteristics shape how IDYA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.05 indicates IDYA 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 IDYA?
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 IDYA snapshot
As of June 29, 2026, spot at $36.55, ATM IV 62.10%, IV rank 9.72%, expected move 17.80%. The butterfly on IDYA 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 IDYA specifically: IDYA IV at 62.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a IDYA butterfly, with a market-implied 1-standard-deviation move of approximately 17.80% (roughly $6.51 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 IDYA expiries trade a higher absolute premium for lower per-day decay. Position sizing on IDYA should anchor to the underlying notional of $36.55 per share and to the trader's directional view on IDYA stock.
IDYA butterfly setup
The IDYA 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 IDYA near $36.55, the first option leg uses a $34.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IDYA 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 IDYA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $34.72 | N/A |
| Sell 2 | Call | $36.55 | N/A |
| Buy 1 | Call | $38.38 | N/A |
IDYA 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.
IDYA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IDYA. 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 IDYA
Butterflies on IDYA are pinning bets - traders use them when they expect IDYA 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.
IDYA thesis for this butterfly
The market-implied 1-standard-deviation range for IDYA extends from approximately $30.04 on the downside to $43.06 on the upside. A IDYA long call butterfly is a pinning play: it pays maximum at the middle strike if IDYA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IDYA IV rank near 9.72% 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 IDYA at 62.10%. As a Healthcare name, IDYA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IDYA-specific events.
IDYA 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. IDYA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IDYA alongside the broader basket even when IDYA-specific fundamentals are unchanged. Always rebuild the position from current IDYA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IDYA?
- A butterfly on IDYA is the butterfly strategy applied to IDYA (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 IDYA stock trading near $36.55, the strikes shown on this page are snapped to the nearest listed IDYA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IDYA 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 IDYA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.10%), 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 IDYA butterfly?
- The breakeven for the IDYA 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 IDYA market-implied 1-standard-deviation expected move is approximately 17.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IDYA?
- Butterflies on IDYA are pinning bets - traders use them when they expect IDYA 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 IDYA implied volatility affect this butterfly?
- IDYA ATM IV is at 62.10% with IV rank near 9.72%, 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.