INFU Butterfly Strategy
INFU (InfuSystem Holdings, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on AMEX.
InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Integrated Therapy Services (ITS) and Durable Medical Equipment Services (DME Services). It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other alternate site settings comprising home care and home infusion providers, skilled nursing facilities, pain centers, hospital market, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.
INFU (InfuSystem Holdings, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $165.7M, a trailing P/E of 20.97, a beta of 1.49 versus the broader market, a 52-week range of 5.08-11.04, average daily share volume of 127K, a public-listing history dating back to 2007, approximately 502 full-time employees. These structural characteristics shape how INFU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.49 indicates INFU 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 INFU?
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 INFU snapshot
As of May 15, 2026, spot at $8.63, ATM IV 37.50%, IV rank 3.69%, expected move 10.75%. The butterfly on INFU 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 INFU specifically: INFU IV at 37.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a INFU butterfly, with a market-implied 1-standard-deviation move of approximately 10.75% (roughly $0.93 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 INFU expiries trade a higher absolute premium for lower per-day decay. Position sizing on INFU should anchor to the underlying notional of $8.63 per share and to the trader's directional view on INFU stock.
INFU butterfly setup
The INFU 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 INFU near $8.63, the first option leg uses a $8.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INFU 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 INFU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.20 | N/A |
| Sell 2 | Call | $8.63 | N/A |
| Buy 1 | Call | $9.06 | N/A |
INFU 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.
INFU butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INFU. 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 INFU
Butterflies on INFU are pinning bets - traders use them when they expect INFU 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.
INFU thesis for this butterfly
The market-implied 1-standard-deviation range for INFU extends from approximately $7.70 on the downside to $9.56 on the upside. A INFU long call butterfly is a pinning play: it pays maximum at the middle strike if INFU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INFU IV rank near 3.69% 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 INFU at 37.50%. As a Healthcare name, INFU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INFU-specific events.
INFU 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. INFU positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INFU alongside the broader basket even when INFU-specific fundamentals are unchanged. Always rebuild the position from current INFU chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INFU?
- A butterfly on INFU is the butterfly strategy applied to INFU (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 INFU stock trading near $8.63, the strikes shown on this page are snapped to the nearest listed INFU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INFU 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 INFU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.50%), 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 INFU butterfly?
- The breakeven for the INFU 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 INFU market-implied 1-standard-deviation expected move is approximately 10.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INFU?
- Butterflies on INFU are pinning bets - traders use them when they expect INFU 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 INFU implied volatility affect this butterfly?
- INFU ATM IV is at 37.50% with IV rank near 3.69%, 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.