MGTX Butterfly Strategy
MGTX (MeiraGTx Holdings plc), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
MeiraGTx Holdings plc operates as a clinical-stage gene therapy company, dedicated to pioneering therapeutic solutions for individuals afflicted by serious illnesses. Its development efforts span a broad spectrum of conditions, encompassing ocular diseases like inherited forms of blindness, as well as xerostomia (dry mouth) that often follows radiation treatment for head and neck cancers. The company also targets various degenerative and neurodegenerative disorders, notably amyotrophic lateral sclerosis (ALS) and Parkinson's disease. Currently, several of its programs are in active clinical development, including Phase 1/2 trials for Achromatopsia, X-Linked Retinitis Pigmentosa, RPE65-deficiency, radiation-induced Xerostomia, and Parkinson's. MeiraGTx is also preparing to commence a clinical program for xerostomia linked to Sjogren's syndrome and maintains preclinical initiatives for other neurodegenerative conditions. A key collaboration exists with Janssen Pharmaceuticals, Inc. to advance regulatable gene therapy treatments, leveraging MeiraGTx's proprietary riboswitch technology.
MGTX (MeiraGTx Holdings plc) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.20B, a beta of 1.21 versus the broader market, a 52-week range of 6.62-15.35, average daily share volume of 912K, a public-listing history dating back to 2018, approximately 409 full-time employees. These structural characteristics shape how MGTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places MGTX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on MGTX?
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.
MGTX snapshot
As of August 14, 2026, spot at $13.75, ATM IV 169.00%, IV rank 32.00%, expected move 48.45%. The butterfly on MGTX 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 MGTX specifically: MGTX IV at 169.00% 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 48.45% (roughly $6.66 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 MGTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MGTX should anchor to the underlying notional of $13.75 per share and to the trader's directional view on MGTX stock.
MGTX butterfly setup
The MGTX 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 MGTX at $13.75 on that close, the first option leg uses a $13.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MGTX 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 MGTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.06 | N/A |
| Sell 2 | Call | $13.75 | N/A |
| Buy 1 | Call | $14.44 | N/A |
MGTX 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.
MGTX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MGTX. 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 MGTX
Butterflies on MGTX are pinning bets - traders use them when they expect MGTX 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.
MGTX thesis for this butterfly
The market-implied 1-standard-deviation range for MGTX extends from approximately $7.09 on the downside to $20.41 on the upside. A MGTX long call butterfly is a pinning play: it pays maximum at the middle strike if MGTX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MGTX IV rank near 32.00% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MGTX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, MGTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MGTX-specific events.
MGTX 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. MGTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MGTX alongside the broader basket even when MGTX-specific fundamentals are unchanged. Always rebuild the position from current MGTX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MGTX?
- A butterfly on MGTX is the butterfly strategy applied to MGTX (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 MGTX stock at $13.75 on the most recent close, the strikes shown on this page are snapped to the nearest listed MGTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MGTX 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 MGTX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 169.00%), 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 MGTX butterfly?
- The breakeven for the MGTX 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 MGTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 48.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MGTX?
- Butterflies on MGTX are pinning bets - traders use them when they expect MGTX 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 MGTX implied volatility affect this butterfly?
- MGTX ATM IV is at 169.00% with IV rank near 32.00%, 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.