INGN Butterfly Strategy
INGN (Inogen, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a single source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Inogen Tidal Assist Ventilators, as well as related accessories. The company also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.
INGN (Inogen, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $184.4M, a beta of 1.65 versus the broader market, a 52-week range of 5.34-9.13, average daily share volume of 322K, a public-listing history dating back to 2014, approximately 766 full-time employees. These structural characteristics shape how INGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.65 indicates INGN 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 INGN?
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 INGN snapshot
As of May 15, 2026, spot at $6.39, ATM IV 60.70%, IV rank 21.73%, expected move 17.40%. The butterfly on INGN 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 INGN specifically: INGN IV at 60.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a INGN butterfly, with a market-implied 1-standard-deviation move of approximately 17.40% (roughly $1.11 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 INGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on INGN should anchor to the underlying notional of $6.39 per share and to the trader's directional view on INGN stock.
INGN butterfly setup
The INGN 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 INGN near $6.39, the first option leg uses a $6.07 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INGN 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 INGN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.07 | N/A |
| Sell 2 | Call | $6.39 | N/A |
| Buy 1 | Call | $6.71 | N/A |
INGN 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.
INGN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INGN. 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 INGN
Butterflies on INGN are pinning bets - traders use them when they expect INGN 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.
INGN thesis for this butterfly
The market-implied 1-standard-deviation range for INGN extends from approximately $5.28 on the downside to $7.50 on the upside. A INGN long call butterfly is a pinning play: it pays maximum at the middle strike if INGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INGN IV rank near 21.73% 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 INGN at 60.70%. As a Healthcare name, INGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INGN-specific events.
INGN 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. INGN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INGN alongside the broader basket even when INGN-specific fundamentals are unchanged. Always rebuild the position from current INGN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INGN?
- A butterfly on INGN is the butterfly strategy applied to INGN (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 INGN stock trading near $6.39, the strikes shown on this page are snapped to the nearest listed INGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INGN 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 INGN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.70%), 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 INGN butterfly?
- The breakeven for the INGN 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 INGN market-implied 1-standard-deviation expected move is approximately 17.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INGN?
- Butterflies on INGN are pinning bets - traders use them when they expect INGN 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 INGN implied volatility affect this butterfly?
- INGN ATM IV is at 60.70% with IV rank near 21.73%, 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.