IGC Butterfly Strategy
IGC (IGC Pharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on AMEX.
IGC Pharma, Inc. operates as a pharmaceutical firm, currently in the clinical development phase, dedicated to pioneering novel treatments for Alzheimer's, a debilitating condition. The company's pipeline includes two experimental drug candidates aimed at this disease: IGC-AD1, which is presently undergoing a Phase 2 clinical study for addressing agitation associated with Alzheimer's-related dementia, and TGR-63, which is still in its preclinical stage. Beyond its therapeutic development efforts, IGC Pharma also explores the application of artificial intelligence (AI) to advance Alzheimer's research. Established on April 29, 2005, by Ram Mukunda, the company maintains its principal office in Potomac, Maryland.
IGC (IGC Pharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $28.6M, a beta of 0.46 versus the broader market, a 52-week range of 0.24-0.5, average daily share volume of 540K, a public-listing history dating back to 2006, approximately 70 full-time employees. These structural characteristics shape how IGC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.46 indicates IGC 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 IGC?
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.
IGC snapshot
As of August 14, 2026, spot at $0.29, ATM IV 29.90%, IV rank 5.11%, expected move 8.57%. The butterfly on IGC below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on IGC specifically: IGC IV at 29.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a IGC butterfly, with a market-implied 1-standard-deviation move of approximately 8.57% (roughly $0.02 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on IGC should anchor to the underlying notional of $0.29 per share and to the trader's directional view on IGC stock.
IGC butterfly setup
The IGC 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 IGC at $0.29 on that close, the first option leg uses a $0.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IGC chain at a 35-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 IGC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.28 | N/A |
| Sell 2 | Call | $0.29 | N/A |
| Buy 1 | Call | $0.30 | N/A |
IGC 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.
IGC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IGC. 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 IGC
Butterflies on IGC are pinning bets - traders use them when they expect IGC 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.
IGC thesis for this butterfly
The market-implied 1-standard-deviation range for IGC extends from approximately $0.27 on the downside to $0.31 on the upside. A IGC long call butterfly is a pinning play: it pays maximum at the middle strike if IGC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IGC IV rank near 5.11% 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 IGC at 29.90%. As a Healthcare name, IGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IGC-specific events.
IGC 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. IGC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IGC alongside the broader basket even when IGC-specific fundamentals are unchanged. Always rebuild the position from current IGC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IGC?
- A butterfly on IGC is the butterfly strategy applied to IGC (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 IGC stock at $0.29 on the most recent close, the strikes shown on this page are snapped to the nearest listed IGC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IGC 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 IGC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.90%), 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 IGC butterfly?
- The breakeven for the IGC butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 IGC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IGC?
- Butterflies on IGC are pinning bets - traders use them when they expect IGC 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 IGC implied volatility affect this butterfly?
- IGC ATM IV is at 29.90% with IV rank near 5.11%, 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.