IMDX Butterfly Strategy
IMDX (Insight Molecular Diagnostics Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
OncoCyte Corporation functions as a molecular diagnostics firm specializing in the research, development, and market introduction of distinctive, laboratory-developed tests aimed at cancer identification. Its operations span both the United States and international territories. The company's key offerings include DetermaRx, a molecular diagnostic tool tailored for detecting early-stage adenocarcinoma of the lung, and DetermaIO, a proprietary gene expression analysis. Additionally, OncoCyte provides a range of expert services, such as biomarker discovery, assay design and refinement, and clinical trial assistance, which encompass offering various biomarker tests to pharmaceutical partners. A strategic partnership with Life Technologies Corporation focuses on the collaborative development and commercialization of the Oncomine Comprehensive Assay Plus and Determa IO assay, intended for integration with the Ion Torrent Genexus integrated sequencer and purification system. OncoCyte Corporation was founded in 2009 and maintains its principal office in Irvine, California.
IMDX (Insight Molecular Diagnostics Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $145.3M, a beta of 1.82 versus the broader market, a 52-week range of 2.33-8.51, average daily share volume of 318K, a public-listing history dating back to 2015, approximately 57 full-time employees. These structural characteristics shape how IMDX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.82 indicates IMDX 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 IMDX?
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.
IMDX snapshot
As of August 14, 2026, spot at $4.27, ATM IV 114.80%, IV rank 23.51%, expected move 32.91%. The butterfly on IMDX 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 IMDX specifically: IMDX IV at 114.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a IMDX butterfly, with a market-implied 1-standard-deviation move of approximately 32.91% (roughly $1.41 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 IMDX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IMDX should anchor to the underlying notional of $4.27 per share and to the trader's directional view on IMDX stock.
IMDX butterfly setup
The IMDX 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 IMDX at $4.27 on that close, the first option leg uses a $4.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IMDX 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 IMDX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.06 | N/A |
| Sell 2 | Call | $4.27 | N/A |
| Buy 1 | Call | $4.48 | N/A |
IMDX 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.
IMDX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IMDX. 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 IMDX
Butterflies on IMDX are pinning bets - traders use them when they expect IMDX 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.
IMDX thesis for this butterfly
The market-implied 1-standard-deviation range for IMDX extends from approximately $2.86 on the downside to $5.68 on the upside. A IMDX long call butterfly is a pinning play: it pays maximum at the middle strike if IMDX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IMDX IV rank near 23.51% 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 IMDX at 114.80%. As a Healthcare name, IMDX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IMDX-specific events.
IMDX 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. IMDX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IMDX alongside the broader basket even when IMDX-specific fundamentals are unchanged. Always rebuild the position from current IMDX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IMDX?
- A butterfly on IMDX is the butterfly strategy applied to IMDX (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 IMDX stock at $4.27 on the most recent close, the strikes shown on this page are snapped to the nearest listed IMDX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IMDX 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 IMDX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 114.80%), 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 IMDX butterfly?
- The breakeven for the IMDX 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 IMDX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IMDX?
- Butterflies on IMDX are pinning bets - traders use them when they expect IMDX 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 IMDX implied volatility affect this butterfly?
- IMDX ATM IV is at 114.80% with IV rank near 23.51%, 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.