MRAM Butterfly Strategy
MRAM (Everspin Technologies, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Everspin Technologies, Inc. is a global provider specializing in the development and distribution of advanced magnetoresistive random access memory (MRAM) products. The company's market reach extends across various international regions, including key territories like the United States, Hong Kong, Japan, China, and Canada. Its comprehensive product line encompasses Toggle MRAM, spin-transfer torque MRAM (STT-MRAM), and tunnel magneto resistance (TMR) sensor components, alongside offering foundry services for embedded MRAM solutions. These high-performance memory devices are deployed in a wide array of demanding applications, serving sectors such as data centers, industrial automation, medical technology, automotive and transportation systems, and the aerospace industry. Everspin supplies its offerings to both original equipment manufacturers (OEMs) and original design manufacturers (ODMs) through a combination of direct sales efforts and a robust network of representatives and distributors. The company, which was founded in 2008, is headquartered in Chandler, Arizona.
MRAM (Everspin Technologies, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $400.0M, a beta of 1.92 versus the broader market, a 52-week range of 5.86-51.5, average daily share volume of 2.8M, a public-listing history dating back to 2016, approximately 85 full-time employees. These structural characteristics shape how MRAM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.92 indicates MRAM 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 MRAM?
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.
MRAM snapshot
As of August 14, 2026, spot at $18.73, ATM IV 92.20%, IV rank 26.85%, expected move 26.43%. The butterfly on MRAM 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 MRAM specifically: MRAM IV at 92.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a MRAM butterfly, with a market-implied 1-standard-deviation move of approximately 26.43% (roughly $4.95 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 MRAM expiries trade a higher absolute premium for lower per-day decay. Position sizing on MRAM should anchor to the underlying notional of $18.73 per share and to the trader's directional view on MRAM stock.
MRAM butterfly setup
The MRAM 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 MRAM at $18.73 on that close, the first option leg uses a $17.79 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MRAM 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 MRAM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.79 | N/A |
| Sell 2 | Call | $18.73 | N/A |
| Buy 1 | Call | $19.67 | N/A |
MRAM 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.
MRAM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MRAM. 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 MRAM
Butterflies on MRAM are pinning bets - traders use them when they expect MRAM 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.
MRAM thesis for this butterfly
The market-implied 1-standard-deviation range for MRAM extends from approximately $13.78 on the downside to $23.68 on the upside. A MRAM long call butterfly is a pinning play: it pays maximum at the middle strike if MRAM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MRAM IV rank near 26.85% 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 MRAM at 92.20%. As a Technology name, MRAM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MRAM-specific events.
MRAM 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. MRAM positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MRAM alongside the broader basket even when MRAM-specific fundamentals are unchanged. Always rebuild the position from current MRAM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MRAM?
- A butterfly on MRAM is the butterfly strategy applied to MRAM (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 MRAM stock at $18.73 on the most recent close, the strikes shown on this page are snapped to the nearest listed MRAM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MRAM 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 MRAM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 92.20%), 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 MRAM butterfly?
- The breakeven for the MRAM 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 MRAM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MRAM?
- Butterflies on MRAM are pinning bets - traders use them when they expect MRAM 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 MRAM implied volatility affect this butterfly?
- MRAM ATM IV is at 92.20% with IV rank near 26.85%, 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.