INDV Butterfly Strategy
INDV (Indivior Pharmaceuticals Inc), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Indivior Pharmaceuticals Inc is a holding company, which engages in the development, manufacture and sale of buprenorphine-based prescription drugs for treatment of opioid dependence. Its products include Suboxone Film, Suboxone Tablet, and Subutex Tablet. It operates through the following geographical segments: United States, Rest of World, and United Kingdom. The company was founded on September 26, 2014 and is headquartered in North Chesterfield, VA.
INDV (Indivior Pharmaceuticals Inc) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $4.78B, a trailing P/E of 19.15, a beta of 1.20 versus the broader market, a 52-week range of 10.63-41, average daily share volume of 2.7M, a public-listing history dating back to 2014, approximately 1K full-time employees. These structural characteristics shape how INDV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places INDV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on INDV?
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 INDV snapshot
As of May 15, 2026, spot at $36.67, ATM IV 49.90%, IV rank 4.55%, expected move 14.31%. The butterfly on INDV 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 INDV specifically: INDV IV at 49.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a INDV butterfly, with a market-implied 1-standard-deviation move of approximately 14.31% (roughly $5.25 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 INDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on INDV should anchor to the underlying notional of $36.67 per share and to the trader's directional view on INDV stock.
INDV butterfly setup
The INDV 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 INDV near $36.67, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INDV 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 INDV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $3.68 |
| Sell 2 | Call | $37.00 | $2.35 |
| Buy 1 | Call | $39.00 | $1.55 |
INDV butterfly risk and reward
- Net Premium / Debit
- -$52.50
- Max Profit (per contract)
- $133.42
- Max Loss (per contract)
- -$52.50
- Breakeven(s)
- $35.53, $38.48
- Risk / Reward Ratio
- 2.541
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.
INDV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INDV. 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% | -$52.50 |
| $8.12 | -77.9% | -$52.50 |
| $16.22 | -55.8% | -$52.50 |
| $24.33 | -33.7% | -$52.50 |
| $32.44 | -11.5% | -$52.50 |
| $40.54 | +10.6% | -$52.50 |
| $48.65 | +32.7% | -$52.50 |
| $56.76 | +54.8% | -$52.50 |
| $64.86 | +76.9% | -$52.50 |
| $72.97 | +99.0% | -$52.50 |
When traders use butterfly on INDV
Butterflies on INDV are pinning bets - traders use them when they expect INDV 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.
INDV thesis for this butterfly
The market-implied 1-standard-deviation range for INDV extends from approximately $31.42 on the downside to $41.92 on the upside. A INDV long call butterfly is a pinning play: it pays maximum at the middle strike if INDV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INDV IV rank near 4.55% 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 INDV at 49.90%. As a Healthcare name, INDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INDV-specific events.
INDV 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. INDV positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INDV alongside the broader basket even when INDV-specific fundamentals are unchanged. Always rebuild the position from current INDV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INDV?
- A butterfly on INDV is the butterfly strategy applied to INDV (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 INDV stock trading near $36.67, the strikes shown on this page are snapped to the nearest listed INDV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INDV 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 INDV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 49.90%), the computed maximum profit is $133.42 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a INDV butterfly?
- The breakeven for the INDV butterfly priced on this page is roughly $35.53 and $38.48 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 INDV market-implied 1-standard-deviation expected move is approximately 14.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INDV?
- Butterflies on INDV are pinning bets - traders use them when they expect INDV 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 INDV implied volatility affect this butterfly?
- INDV ATM IV is at 49.90% with IV rank near 4.55%, 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.