IFRX Butterfly Strategy
IFRX (InflaRx N.V.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
InflaRx N.V., a clinical-stage biopharmaceutical company, discovers and develops inhibitors using C5a technology primarily in Germany and the United States. The company's C5a is an inflammatory mediator that is involved in the progression of a variety of autoimmune and other inflammatory diseases. Its lead product candidate is vilobelimab, a novel intravenously delivered first-in-class anti-C5a monoclonal antibody, which completed the Phase III clinical trial for the treatment of hidradenitis suppurativa, a rare and chronic debilitating systemic inflammatory skin disease; for the treatment of anti-neutrophil cytoplasm antibody associated vasculitis, a rare and life-threatening autoimmune disease that is in Phase II trial; to treat pyoderma gangraenosum, a chronic inflammatory skin disorder that is in Phase IIa exploratory study; and for the treatment of PD-1/PD-L1 inhibitor resistant/refractory locally advanced or metastatic cutaneous squamous cell carcinoma that is in Phase II clinical development stage. The company also develops INF904, an oral, small molecule drug candidate for the undisclosed chronic inflammatory and autoimmune diseases; and IFX002 that is in pre-clinical development stage for the treatment of chronic inflammation and autoimmune diseases. It has co-development agreement with Beijing Defengrei Biotechnology Co. Ltd.; and clinical trial collaboration and supply agreement with Merck & Co.
IFRX (InflaRx N.V.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $182.2M, a beta of 2.44 versus the broader market, a 52-week range of 0.711-2.949, average daily share volume of 1.4M, a public-listing history dating back to 2017, approximately 74 full-time employees. These structural characteristics shape how IFRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.44 indicates IFRX 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 IFRX?
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 IFRX snapshot
As of May 15, 2026, spot at $2.29, ATM IV 206.40%, IV rank 39.45%, expected move 59.17%. The butterfly on IFRX 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 IFRX specifically: IFRX IV at 206.40% 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 59.17% (roughly $1.36 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 IFRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IFRX should anchor to the underlying notional of $2.29 per share and to the trader's directional view on IFRX stock.
IFRX butterfly setup
The IFRX 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 IFRX near $2.29, the first option leg uses a $2.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IFRX 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 IFRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.18 | N/A |
| Sell 2 | Call | $2.29 | N/A |
| Buy 1 | Call | $2.40 | N/A |
IFRX 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.
IFRX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IFRX. 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 IFRX
Butterflies on IFRX are pinning bets - traders use them when they expect IFRX 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.
IFRX thesis for this butterfly
The market-implied 1-standard-deviation range for IFRX extends from approximately $0.93 on the downside to $3.65 on the upside. A IFRX long call butterfly is a pinning play: it pays maximum at the middle strike if IFRX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IFRX IV rank near 39.45% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on IFRX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IFRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IFRX-specific events.
IFRX 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. IFRX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IFRX alongside the broader basket even when IFRX-specific fundamentals are unchanged. Always rebuild the position from current IFRX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IFRX?
- A butterfly on IFRX is the butterfly strategy applied to IFRX (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 IFRX stock trading near $2.29, the strikes shown on this page are snapped to the nearest listed IFRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IFRX 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 IFRX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 206.40%), 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 IFRX butterfly?
- The breakeven for the IFRX 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 IFRX market-implied 1-standard-deviation expected move is approximately 59.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IFRX?
- Butterflies on IFRX are pinning bets - traders use them when they expect IFRX 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 IFRX implied volatility affect this butterfly?
- IFRX ATM IV is at 206.40% with IV rank near 39.45%, 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.