MMED Butterfly Strategy
MMED (MiniMed Group, Inc. Common Stock), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
MiniMed Group, Inc. engages in the development, manufacturing, and marketing of a wide range of medical devices and solutions for diabetes management. Its offerings include insulin pumps, continuous glucose monitoring systems, infusion sets, software platforms, and related accessories that help patients and healthcare providers effectively monitor and control blood glucose levels. The company was founded by Alfred E. Mann in 1983 and is headquartered in Northridge, CA.
MMED (MiniMed Group, Inc. Common Stock) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $3.14B, a beta of 0.00 versus the broader market, a 52-week range of 11.02-20.48, average daily share volume of 1.1M, a public-listing history dating back to 2026. These structural characteristics shape how MMED stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates MMED 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 MMED?
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 MMED snapshot
As of May 15, 2026, spot at $10.94, ATM IV 74.20%, expected move 21.27%. The butterfly on MMED 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 MMED specifically: IV rank is unavailable in the current snapshot, so regime-based timing for MMED is inferred from ATM IV at 74.20% alone, with a market-implied 1-standard-deviation move of approximately 21.27% (roughly $2.33 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 MMED expiries trade a higher absolute premium for lower per-day decay. Position sizing on MMED should anchor to the underlying notional of $10.94 per share and to the trader's directional view on MMED stock.
MMED butterfly setup
The MMED 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 MMED near $10.94, the first option leg uses a $10.39 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MMED 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 MMED shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.39 | N/A |
| Sell 2 | Call | $10.94 | N/A |
| Buy 1 | Call | $11.49 | N/A |
MMED 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.
MMED butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MMED. 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 MMED
Butterflies on MMED are pinning bets - traders use them when they expect MMED 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.
MMED thesis for this butterfly
The market-implied 1-standard-deviation range for MMED extends from approximately $8.61 on the downside to $13.27 on the upside. A MMED long call butterfly is a pinning play: it pays maximum at the middle strike if MMED settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Healthcare name, MMED options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MMED-specific events.
MMED 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. MMED positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MMED alongside the broader basket even when MMED-specific fundamentals are unchanged. Always rebuild the position from current MMED chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MMED?
- A butterfly on MMED is the butterfly strategy applied to MMED (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 MMED stock trading near $10.94, the strikes shown on this page are snapped to the nearest listed MMED chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MMED 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 MMED butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 74.20%), 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 MMED butterfly?
- The breakeven for the MMED 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 MMED market-implied 1-standard-deviation expected move is approximately 21.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MMED?
- Butterflies on MMED are pinning bets - traders use them when they expect MMED 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 MMED implied volatility affect this butterfly?
- Current MMED ATM IV is 74.20%; IV rank context is unavailable in the current snapshot.