INVA Butterfly Strategy
INVA (Innoviva, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Innoviva, Inc. functions as a pharmaceutical company, concentrating on the worldwide creation and marketing of medical treatments. Its current product lineup prominently includes several once-daily combination therapies: RELVAR/BREO ELLIPTA, which integrates vilanterol (a long-acting beta2 agonist, or LABA) with fluticasone furoate (an inhaled corticosteroid, or ICS); ANORO ELLIPTA, a medication that pairs umeclidinium bromide (a long-acting muscarinic antagonist, or LAMA) with vilanterol (LABA); and TRELEGY ELLIPTA, a comprehensive treatment combining an ICS, LAMA, and LABA. The company has forged a key strategic alliance with Sarissa Capital Management LP. Moreover, Innoviva collaborates with Glaxo Group Limited under an agreement focused on the development and commercialization of daily LABA-based products designed to treat chronic obstructive pulmonary disease and asthma. Founded in 1996, the corporation was initially known as Theravance, Inc., before officially changing its name to Innoviva, Inc. in January 2016. Its primary operational base is situated in Burlingame, California.
INVA (Innoviva, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.54B, a trailing P/E of 4.28, a beta of 0.34 versus the broader market, a 52-week range of 16.52-25.15, average daily share volume of 776K, a public-listing history dating back to 2004, approximately 159 full-time employees. These structural characteristics shape how INVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.34 indicates INVA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 4.28 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. INVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on INVA?
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.
INVA snapshot
As of August 14, 2026, spot at $21.14, ATM IV 31.00%, IV rank 2.83%, expected move 8.89%. The butterfly on INVA below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on INVA specifically: INVA IV at 31.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a INVA butterfly, with a market-implied 1-standard-deviation move of approximately 8.89% (roughly $1.88 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated INVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on INVA should anchor to the underlying notional of $21.14 per share and to the trader's directional view on INVA stock.
INVA butterfly setup
The INVA 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 INVA at $21.14 on that close, the first option leg uses a $20.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INVA chain at a 35-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 INVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.08 | N/A |
| Sell 2 | Call | $21.14 | N/A |
| Buy 1 | Call | $22.20 | N/A |
INVA 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.
INVA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INVA. 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 INVA
Butterflies on INVA are pinning bets - traders use them when they expect INVA 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.
INVA thesis for this butterfly
The market-implied 1-standard-deviation range for INVA extends from approximately $19.26 on the downside to $23.02 on the upside. A INVA long call butterfly is a pinning play: it pays maximum at the middle strike if INVA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INVA IV rank near 2.83% 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 INVA at 31.00%. As a Healthcare name, INVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INVA-specific events.
INVA 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. INVA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INVA alongside the broader basket even when INVA-specific fundamentals are unchanged. Always rebuild the position from current INVA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INVA?
- A butterfly on INVA is the butterfly strategy applied to INVA (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 INVA stock at $21.14 on the most recent close, the strikes shown on this page are snapped to the nearest listed INVA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are INVA 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 INVA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.00%), 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 INVA butterfly?
- The breakeven for the INVA butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The INVA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INVA?
- Butterflies on INVA are pinning bets - traders use them when they expect INVA 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 INVA implied volatility affect this butterfly?
- INVA ATM IV is at 31.00% with IV rank near 2.83%, 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.