IVVD Butterfly Strategy
IVVD (Invivyd, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Adagio Therapeutics, Inc., a biopharmaceutical firm in its clinical development phase, operates within the United States, specializing in the discovery, progression, and marketing of antibody-derived solutions for infectious diseases. The company's leading drug candidate, ADG20 (adintrevimab), is a neutralizing antibody currently undergoing Phase 3 clinical investigation for both the management and prevention of coronavirus disease. Adagio Therapeutics maintains collaborative agreements with Adimab, LLC to facilitate the identification and enhancement of its exclusive antibodies. Furthermore, it partners with the Scripps Research Institute to conduct studies aimed at uncovering potential vaccine solutions for the prophylaxis, detection, or therapy of influenza or beta coronaviruses. Incorporated in 2020, the company's base of operations is in Waltham, Massachusetts.
IVVD (Invivyd, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $212.4M, a beta of 0.71 versus the broader market, a 52-week range of 0.483-3.07, average daily share volume of 4.0M, a public-listing history dating back to 2021, approximately 122 full-time employees. These structural characteristics shape how IVVD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places IVVD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on IVVD?
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.
IVVD snapshot
As of August 14, 2026, spot at $0.72, ATM IV 27.40%, IV rank 1.21%, expected move 7.86%. The butterfly on IVVD 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 IVVD specifically: IVVD IV at 27.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a IVVD butterfly, with a market-implied 1-standard-deviation move of approximately 7.86% (roughly $0.06 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 IVVD expiries trade a higher absolute premium for lower per-day decay. Position sizing on IVVD should anchor to the underlying notional of $0.72 per share and to the trader's directional view on IVVD stock.
IVVD butterfly setup
The IVVD 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 IVVD at $0.72 on that close, the first option leg uses a $0.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IVVD 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 IVVD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.68 | N/A |
| Sell 2 | Call | $0.72 | N/A |
| Buy 1 | Call | $0.76 | N/A |
IVVD 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.
IVVD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IVVD. 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 IVVD
Butterflies on IVVD are pinning bets - traders use them when they expect IVVD 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.
IVVD thesis for this butterfly
The market-implied 1-standard-deviation range for IVVD extends from approximately $0.66 on the downside to $0.78 on the upside. A IVVD long call butterfly is a pinning play: it pays maximum at the middle strike if IVVD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IVVD IV rank near 1.21% 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 IVVD at 27.40%. As a Healthcare name, IVVD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IVVD-specific events.
IVVD 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. IVVD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IVVD alongside the broader basket even when IVVD-specific fundamentals are unchanged. Always rebuild the position from current IVVD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IVVD?
- A butterfly on IVVD is the butterfly strategy applied to IVVD (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 IVVD stock at $0.72 on the most recent close, the strikes shown on this page are snapped to the nearest listed IVVD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IVVD 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 IVVD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.40%), 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 IVVD butterfly?
- The breakeven for the IVVD 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 IVVD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IVVD?
- Butterflies on IVVD are pinning bets - traders use them when they expect IVVD 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 IVVD implied volatility affect this butterfly?
- IVVD ATM IV is at 27.40% with IV rank near 1.21%, 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.