INVZ Butterfly Strategy
INVZ (Innoviz Technologies Ltd.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Innoviz Technologies Ltd. designs and manufactures solid-state LiDAR sensors and develops perception software that enables the mass production of autonomous vehicles. The company manufactures InnovizOne, a solid-state LiDAR sensor designed for automakers and robotaxi, shuttle, trucking, and delivery companies requiring an automotive-grade and mass-producible solution to achieve autonomy. Its automotive-grade sensor is integrable into Level 3 through 5 autonomous vehicles for the safety of passengers and pedestrians. The company also provides InnovizTwo, an automotive-grade LiDAR sensor that offers a solution for all levels of autonomous driving, as well as an option to integrate the perception application in the LiDAR sensor; Innoviz360, a 360-degree LiDAR for automotive and non-automotive applications; and perception application, a software application that turns the InnovizOne LiDAR's raw point cloud data into perception outputs to provide scene perception and deliver an automotive-grade ASIL B(D) solution. It operates in Europe, Asia Pacific, the Middle East, Africa, and North America. Innoviz Technologies Ltd. was incorporated in 2016 and is headquartered in Rosh HaAyin, Israel.
INVZ (Innoviz Technologies Ltd.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $196.6M, a beta of 1.43 versus the broader market, a 52-week range of 0.58-2.54, average daily share volume of 2.4M, a public-listing history dating back to 2020, approximately 415 full-time employees. These structural characteristics shape how INVZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates INVZ 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 INVZ?
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 INVZ snapshot
As of May 15, 2026, spot at $0.73, ATM IV 171.40%, IV rank 49.74%, expected move 49.14%. The butterfly on INVZ 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 INVZ specifically: INVZ IV at 171.40% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 49.14% (roughly $0.36 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 INVZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on INVZ should anchor to the underlying notional of $0.73 per share and to the trader's directional view on INVZ stock.
INVZ butterfly setup
The INVZ 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 INVZ near $0.73, the first option leg uses a $0.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INVZ 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 INVZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.69 | N/A |
| Sell 2 | Call | $0.73 | N/A |
| Buy 1 | Call | $0.77 | N/A |
INVZ 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.
INVZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INVZ. 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 INVZ
Butterflies on INVZ are pinning bets - traders use them when they expect INVZ 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.
INVZ thesis for this butterfly
The market-implied 1-standard-deviation range for INVZ extends from approximately $0.37 on the downside to $1.09 on the upside. A INVZ long call butterfly is a pinning play: it pays maximum at the middle strike if INVZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INVZ IV rank near 49.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on INVZ should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, INVZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INVZ-specific events.
INVZ 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. INVZ positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INVZ alongside the broader basket even when INVZ-specific fundamentals are unchanged. Always rebuild the position from current INVZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INVZ?
- A butterfly on INVZ is the butterfly strategy applied to INVZ (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 INVZ stock trading near $0.73, the strikes shown on this page are snapped to the nearest listed INVZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INVZ 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 INVZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 171.40%), 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 INVZ butterfly?
- The breakeven for the INVZ 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 INVZ market-implied 1-standard-deviation expected move is approximately 49.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INVZ?
- Butterflies on INVZ are pinning bets - traders use them when they expect INVZ 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 INVZ implied volatility affect this butterfly?
- INVZ ATM IV is at 171.40% with IV rank near 49.74%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.