INV Butterfly Strategy
INV (Innventure, Inc.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Innventure, Inc. identifies, funds, and operates companies with a focus on sustainable technology solutions acquired or licensed from multinational corporations. Innventure, Inc. was founded in 2015 and is headquartered in Orlando, Florida.
INV (Innventure, Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $301.5M, a beta of 0.37 versus the broader market, a 52-week range of 2.36-7.86, average daily share volume of 2.3M, a public-listing history dating back to 2021, approximately 169 full-time employees. These structural characteristics shape how INV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.37 indicates INV 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 INV?
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 INV snapshot
As of June 30, 2026, spot at $5.13, ATM IV 123.50%, IV rank 29.88%, expected move 35.41%. The butterfly on INV 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 17-day expiry.
Why this butterfly structure on INV specifically: INV IV at 123.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a INV butterfly, with a market-implied 1-standard-deviation move of approximately 35.41% (roughly $1.82 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated INV expiries trade a higher absolute premium for lower per-day decay. Position sizing on INV should anchor to the underlying notional of $5.13 per share and to the trader's directional view on INV stock.
INV butterfly setup
The INV 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 INV near $5.13, the first option leg uses a $4.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INV chain at a 17-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 INV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.87 | N/A |
| Sell 2 | Call | $5.13 | N/A |
| Buy 1 | Call | $5.39 | N/A |
INV 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.
INV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INV. 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 INV
Butterflies on INV are pinning bets - traders use them when they expect INV 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.
INV thesis for this butterfly
The market-implied 1-standard-deviation range for INV extends from approximately $3.31 on the downside to $6.95 on the upside. A INV long call butterfly is a pinning play: it pays maximum at the middle strike if INV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INV IV rank near 29.88% 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 INV at 123.50%. As a Financial Services name, INV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INV-specific events.
INV 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. INV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INV alongside the broader basket even when INV-specific fundamentals are unchanged. Always rebuild the position from current INV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INV?
- A butterfly on INV is the butterfly strategy applied to INV (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 INV stock trading near $5.13, the strikes shown on this page are snapped to the nearest listed INV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INV 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 INV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 123.50%), 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 INV butterfly?
- The breakeven for the INV 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 INV market-implied 1-standard-deviation expected move is approximately 35.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INV?
- Butterflies on INV are pinning bets - traders use them when they expect INV 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 INV implied volatility affect this butterfly?
- INV ATM IV is at 123.50% with IV rank near 29.88%, 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.