IRIX Butterfly Strategy
IRIX (IRIDEX Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser photocoagulation systems, which are used for the treatment of diabetic macular edema and other retinal diseases; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally.
IRIX (IRIDEX Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $17.9M, a beta of 0.65 versus the broader market, a 52-week range of 0.87-1.65, average daily share volume of 258K, a public-listing history dating back to 1996, approximately 93 full-time employees. These structural characteristics shape how IRIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates IRIX 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 IRIX?
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 IRIX snapshot
As of May 15, 2026, spot at $1.03, ATM IV 22.70%, IV rank 1.34%, expected move 6.51%. The butterfly on IRIX 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 IRIX specifically: IRIX IV at 22.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a IRIX butterfly, with a market-implied 1-standard-deviation move of approximately 6.51% (roughly $0.07 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 IRIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRIX should anchor to the underlying notional of $1.03 per share and to the trader's directional view on IRIX stock.
IRIX butterfly setup
The IRIX 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 IRIX near $1.03, the first option leg uses a $0.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRIX 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 IRIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.98 | N/A |
| Sell 2 | Call | $1.03 | N/A |
| Buy 1 | Call | $1.08 | N/A |
IRIX 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.
IRIX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IRIX. 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 IRIX
Butterflies on IRIX are pinning bets - traders use them when they expect IRIX 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.
IRIX thesis for this butterfly
The market-implied 1-standard-deviation range for IRIX extends from approximately $0.96 on the downside to $1.10 on the upside. A IRIX long call butterfly is a pinning play: it pays maximum at the middle strike if IRIX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IRIX IV rank near 1.34% 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 IRIX at 22.70%. As a Healthcare name, IRIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRIX-specific events.
IRIX 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. IRIX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRIX alongside the broader basket even when IRIX-specific fundamentals are unchanged. Always rebuild the position from current IRIX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IRIX?
- A butterfly on IRIX is the butterfly strategy applied to IRIX (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 IRIX stock trading near $1.03, the strikes shown on this page are snapped to the nearest listed IRIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRIX 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 IRIX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.70%), 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 IRIX butterfly?
- The breakeven for the IRIX 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 IRIX market-implied 1-standard-deviation expected move is approximately 6.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IRIX?
- Butterflies on IRIX are pinning bets - traders use them when they expect IRIX 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 IRIX implied volatility affect this butterfly?
- IRIX ATM IV is at 22.70% with IV rank near 1.34%, 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.