IMVT Butterfly Strategy
IMVT (Immunovant, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Immunovant, Inc., a clinical-stage biopharmaceutical company, develops monoclonal antibodies for the treatment of autoimmune diseases. It develops batoclimab, a novel fully human monoclonal antibody that selectively binds to and inhibits the neonatal fragment crystallizable receptor, which is in Phase IIa clinical trials for the treatment of myasthenia gravis and thyroid eye disease, as well as completed initiation of Phase II clinical trials for the treatment of warm autoimmune hemolytic anemia. The company was incorporated in 2018 is headquartered in New York, New York. Immunovant, Inc. is a subsidiary of Roivant Sciences Ltd.
IMVT (Immunovant, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.95B, a beta of 0.70 versus the broader market, a 52-week range of 13.63-30.16, average daily share volume of 1.4M, a public-listing history dating back to 2019, approximately 362 full-time employees. These structural characteristics shape how IMVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 places IMVT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on IMVT?
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 IMVT snapshot
As of May 15, 2026, spot at $27.51, ATM IV 74.90%, IV rank 40.07%, expected move 21.47%. The butterfly on IMVT 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 IMVT specifically: IMVT IV at 74.90% 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 21.47% (roughly $5.91 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 IMVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on IMVT should anchor to the underlying notional of $27.51 per share and to the trader's directional view on IMVT stock.
IMVT butterfly setup
The IMVT 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 IMVT near $27.51, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IMVT 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 IMVT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.00 | $3.78 |
| Sell 2 | Call | $28.00 | $2.43 |
| Buy 1 | Call | $29.00 | $2.05 |
IMVT butterfly risk and reward
- Net Premium / Debit
- -$97.50
- Max Profit (per contract)
- $95.46
- Max Loss (per contract)
- -$97.50
- Breakeven(s)
- $26.98
- Risk / Reward Ratio
- 0.979
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.
IMVT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IMVT. 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 | -100.0% | -$97.50 |
| $6.09 | -77.9% | -$97.50 |
| $12.17 | -55.8% | -$97.50 |
| $18.25 | -33.6% | -$97.50 |
| $24.34 | -11.5% | -$97.50 |
| $30.42 | +10.6% | +$2.50 |
| $36.50 | +32.7% | +$2.50 |
| $42.58 | +54.8% | +$2.50 |
| $48.66 | +76.9% | +$2.50 |
| $54.74 | +99.0% | +$2.50 |
When traders use butterfly on IMVT
Butterflies on IMVT are pinning bets - traders use them when they expect IMVT 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.
IMVT thesis for this butterfly
The market-implied 1-standard-deviation range for IMVT extends from approximately $21.60 on the downside to $33.42 on the upside. A IMVT long call butterfly is a pinning play: it pays maximum at the middle strike if IMVT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IMVT IV rank near 40.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on IMVT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IMVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IMVT-specific events.
IMVT 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. IMVT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IMVT alongside the broader basket even when IMVT-specific fundamentals are unchanged. Always rebuild the position from current IMVT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IMVT?
- A butterfly on IMVT is the butterfly strategy applied to IMVT (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 IMVT stock trading near $27.51, the strikes shown on this page are snapped to the nearest listed IMVT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IMVT 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 IMVT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 74.90%), the computed maximum profit is $95.46 per contract and the computed maximum loss is -$97.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IMVT butterfly?
- The breakeven for the IMVT butterfly priced on this page is roughly $26.98 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 IMVT market-implied 1-standard-deviation expected move is approximately 21.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IMVT?
- Butterflies on IMVT are pinning bets - traders use them when they expect IMVT 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 IMVT implied volatility affect this butterfly?
- IMVT ATM IV is at 74.90% with IV rank near 40.07%, 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.