INNV Butterfly Strategy
INNV (InnovAge Holding Corp.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities. It manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. The company offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. It serves approximately 6,850 PACE participants in the United States; and operates 18 PACE centers in Colorado, California, New Mexico, Pennsylvania, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
INNV (InnovAge Holding Corp.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.00B, a beta of 0.49 versus the broader market, a 52-week range of 3.13-10.69, average daily share volume of 308K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how INNV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.49 indicates INNV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on INNV?
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 INNV snapshot
As of May 15, 2026, spot at $7.13, ATM IV 97.50%, IV rank 17.57%, expected move 27.95%. The butterfly on INNV 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 INNV specifically: INNV IV at 97.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a INNV butterfly, with a market-implied 1-standard-deviation move of approximately 27.95% (roughly $1.99 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 INNV expiries trade a higher absolute premium for lower per-day decay. Position sizing on INNV should anchor to the underlying notional of $7.13 per share and to the trader's directional view on INNV stock.
INNV butterfly setup
The INNV 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 INNV near $7.13, the first option leg uses a $6.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INNV 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 INNV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.77 | N/A |
| Sell 2 | Call | $7.13 | N/A |
| Buy 1 | Call | $7.49 | N/A |
INNV 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.
INNV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INNV. 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 INNV
Butterflies on INNV are pinning bets - traders use them when they expect INNV 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.
INNV thesis for this butterfly
The market-implied 1-standard-deviation range for INNV extends from approximately $5.14 on the downside to $9.12 on the upside. A INNV long call butterfly is a pinning play: it pays maximum at the middle strike if INNV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INNV IV rank near 17.57% 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 INNV at 97.50%. As a Healthcare name, INNV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INNV-specific events.
INNV 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. INNV positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INNV alongside the broader basket even when INNV-specific fundamentals are unchanged. Always rebuild the position from current INNV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INNV?
- A butterfly on INNV is the butterfly strategy applied to INNV (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 INNV stock trading near $7.13, the strikes shown on this page are snapped to the nearest listed INNV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INNV 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 INNV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 97.50%), 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 INNV butterfly?
- The breakeven for the INNV 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 INNV market-implied 1-standard-deviation expected move is approximately 27.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INNV?
- Butterflies on INNV are pinning bets - traders use them when they expect INNV 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 INNV implied volatility affect this butterfly?
- INNV ATM IV is at 97.50% with IV rank near 17.57%, 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.