MYGN Butterfly Strategy
MYGN (Myriad Genetics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Myriad Genetics, Inc., a molecular diagnostics and precision medicine company, develops molecular tests. The company offers molecular diagnostic tests for oncology, women’s health, and pharmacogenomics. It also provides MyRisk Hereditary Cancer test, a DNA sequencing test for hereditary cancers; BRACAnalysis CDx Germline Companion Diagnostic test, a DNA sequencing test for metastatic breast, ovarian, metastatic pancreatic, and metastatic prostate cancer with deleterious or suspected deleterious germline BRCA variants; and MyChoice CDx Companion Diagnostic test, a tumor test that determines homologous recombination deficiency status in patients with ovarian cancer. In addition, the company offers Prolaris Prostate Cancer Prognostic test, an RNA expression tumor analysis for assessing the aggressiveness of prostate cancer; EndoPredict Breast Cancer Prognostic test, an RNA expression test for assessing the aggressiveness of breast cancer; Precise Tumor Molecular Profile test, a genomic profiling test; Prequel Prenatal Screen, a non-invasive prenatal screening test conducted using maternal blood to screen for severe chromosomal disorders in a fetus; Foresight Carrier Screen, a prenatal test for future parents to assess their risk of passing on a recessive genetic condition to their offspring; SneakPeek Early Gender DNA test, a non-invasive blood test that predicts the gender of a fetus; FirstGene; and GeneSight Psychotropic Mental Health Medication test, a DNA genotyping test to aid psychotropic drug selection for depression, anxiety, attention-deficit/hyperactivity disorder, and other mental health conditions. It has a license collaboration with Illumina, Inc.; University of Texas M.D. Anderson Cancer Center; Mayo Foundation for Medical Education and Research; Children’s Medical Center in Boston; Institut Curie and INSERM; and Eurobio Scientific SA.
MYGN (Myriad Genetics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $305.1M, a beta of 1.67 versus the broader market, a 52-week range of 2.74-8.59, average daily share volume of 1.8M, a public-listing history dating back to 1995, approximately 3K full-time employees. These structural characteristics shape how MYGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.67 indicates MYGN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MYGN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MYGN?
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.
MYGN snapshot
As of August 14, 2026, spot at $3.05, ATM IV 480.60%, IV rank 100.00%, expected move 137.78%. The butterfly on MYGN 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 MYGN specifically: MYGN IV at 480.60% is rich versus its 1-year range, which makes a premium-buying MYGN butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 137.78% (roughly $4.20 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 MYGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on MYGN should anchor to the underlying notional of $3.05 per share and to the trader's directional view on MYGN stock.
MYGN butterfly setup
The MYGN 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 MYGN at $3.05 on that close, the first option leg uses a $2.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MYGN 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 MYGN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.90 | N/A |
| Sell 2 | Call | $3.05 | N/A |
| Buy 1 | Call | $3.20 | N/A |
MYGN 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.
MYGN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MYGN. 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 MYGN
Butterflies on MYGN are pinning bets - traders use them when they expect MYGN 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.
MYGN thesis for this butterfly
The market-implied 1-standard-deviation range for MYGN extends from approximately $-1.15 on the downside to $7.25 on the upside. A MYGN long call butterfly is a pinning play: it pays maximum at the middle strike if MYGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MYGN IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MYGN at 480.60%. As a Healthcare name, MYGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MYGN-specific events.
MYGN 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. MYGN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MYGN alongside the broader basket even when MYGN-specific fundamentals are unchanged. Always rebuild the position from current MYGN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MYGN?
- A butterfly on MYGN is the butterfly strategy applied to MYGN (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 MYGN stock at $3.05 on the most recent close, the strikes shown on this page are snapped to the nearest listed MYGN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MYGN 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 MYGN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 480.60%), 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 MYGN butterfly?
- The breakeven for the MYGN 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 MYGN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 137.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MYGN?
- Butterflies on MYGN are pinning bets - traders use them when they expect MYGN 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 MYGN implied volatility affect this butterfly?
- MYGN ATM IV is at 480.60% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.