How are IRTC 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 IRTC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.40%), the computed maximum profit is $636.02 per contract and the computed maximum loss is -$342.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IRTC butterfly?

The breakeven for the IRTC butterfly priced on this page is roughly $131.58 at expiration, derived from the August 14, 2026 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 IRTC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IRTC implied volatility affect this butterfly?

IRTC ATM IV is at 43.40% with IV rank near 20.23%, 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.

IRTC Butterfly Strategy

IRTC (iRhythm Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

iRhythm Technologies, Inc. is a digital healthcare enterprise dedicated to offering portable electrocardiogram (ECG) monitoring solutions to individuals in the United States who face the risk of cardiac arrhythmias. Its primary offering, the Zio service, provides a comprehensive ambulatory cardiac monitoring system. This system ingeniously combines a wireless, patch-based, and wearable biosensor—specifically embodied in products like the Zio XT and AT monitors—with a sophisticated cloud-based data analysis platform. These single-use biosensors precisely record a patient's heartbeats and ECG data, thereby enabling medical professionals to effectively oversee patient heart health and accurately diagnose arrhythmias. Furthermore, iRhythm maintains a strategic development partnership with Verily Life Sciences LLC, focused on pioneering future atrial fibrillation screening, detection, and monitoring innovations. Founded in 2006, the company maintains its corporate headquarters in San Francisco, California.

IRTC (iRhythm Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $4.16B, a beta of 1.32 versus the broader market, a 52-week range of 100.846-212, average daily share volume of 576K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how IRTC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates IRTC 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 IRTC?

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.

IRTC snapshot

As of August 14, 2026, spot at $126.69, ATM IV 43.40%, IV rank 20.23%, expected move 12.44%. The butterfly on IRTC below is built from the August 14, 2026 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 IRTC specifically: IRTC IV at 43.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a IRTC butterfly, with a market-implied 1-standard-deviation move of approximately 12.44% (roughly $15.76 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 IRTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRTC should anchor to the underlying notional of $126.69 per share and to the trader's directional view on IRTC stock.

IRTC butterfly setup

The IRTC butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With IRTC at $126.69 on that close, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRTC 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 IRTC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$120.00	$10.75
Sell 2	Call	$125.00	$7.65
Buy 1	Call	$135.00	$2.98

IRTC butterfly risk and reward

Net Premium / Debit: +$157.50
Max Profit (per contract): $636.02
Max Loss (per contract): -$342.50
Breakeven(s): $131.58
Risk / Reward Ratio: 1.857

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.

IRTC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on IRTC. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$157.50
$28.02	-77.9%	+$157.50
$56.03	-55.8%	+$157.50
$84.04	-33.7%	+$157.50
$112.05	-11.6%	+$157.50
$140.06	+10.6%	-$342.50
$168.07	+32.7%	-$342.50
$196.09	+54.8%	-$342.50
$224.10	+76.9%	-$342.50
$252.11	+99.0%	-$342.50

When traders use butterfly on IRTC

Butterflies on IRTC are pinning bets - traders use them when they expect IRTC 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.

IRTC thesis for this butterfly

The market-implied 1-standard-deviation range for IRTC extends from approximately $110.93 on the downside to $142.45 on the upside. A IRTC long call butterfly is a pinning play: it pays maximum at the middle strike if IRTC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IRTC IV rank near 20.23% 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 IRTC at 43.40%. As a Healthcare name, IRTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRTC-specific events.

IRTC 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. IRTC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRTC alongside the broader basket even when IRTC-specific fundamentals are unchanged. Always rebuild the position from current IRTC chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on IRTC?: A butterfly on IRTC is the butterfly strategy applied to IRTC (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 IRTC stock at $126.69 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IRTC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IRTC 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 IRTC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.40%), the computed maximum profit is $636.02 per contract and the computed maximum loss is -$342.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IRTC butterfly?: The breakeven for the IRTC butterfly priced on this page is roughly $131.58 at expiration, derived from the August 14, 2026 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 IRTC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on IRTC?: Butterflies on IRTC are pinning bets - traders use them when they expect IRTC 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 IRTC implied volatility affect this butterfly?: IRTC ATM IV is at 43.40% with IV rank near 20.23%, 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.