How are NTLA 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 NTLA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 82.70%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NTLA butterfly?

The breakeven for the NTLA butterfly priced on this page is roughly $13.43 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 NTLA market-implied 1-standard-deviation expected move is approximately 23.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NTLA implied volatility affect this butterfly?

NTLA ATM IV is at 82.70% with IV rank near 28.90%, 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.

NTLA Butterfly Strategy

NTLA (Intellia Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Intellia Therapeutics, Inc., a genome editing company, focuses on the development of therapeutics. The company's in vivo programs include NTLA-2001, which is in Phase 1 clinical trial for the treatment of transthyretin amyloidosis; and NTLA-2002 for the treatment of hereditary angioedema, as well as other liver-focused programs comprising hemophilia A and hemophilia B, hyperoxaluria Type 1, and alpha-1 antitrypsin deficiency. Its ex vivo pipeline includes NTLA-5001 for the treatment of acute myeloid leukemia; and proprietary programs focused on developing engineered cell therapies to treat various oncological and autoimmune disorders. In addition, it offers tools comprising of Clustered, Regularly Interspaced Short Palindromic Repeats/CRISPR associated 9 (CRISPR/Cas9) system. Intellia Therapeutics, Inc. has license and collaboration agreements with Novartis Institutes for BioMedical Research, Inc. to engineer hematopoietic stem cells for the treatment of sickle cell disease; Regeneron Pharmaceuticals, Inc. to co-develop potential products for the treatment of hemophilia A and hemophilia B; Ospedale San Raffaele; and a strategic collaboration with SparingVision SAS to develop novel genomic medicines utilizing CRISPR/Cas9 technology for the treatment of ocular diseases. The company was formerly known as AZRN, Inc.

NTLA (Intellia Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.60B, a beta of 1.93 versus the broader market, a 52-week range of 6.83-28.25, average daily share volume of 5.8M, a public-listing history dating back to 2016, approximately 403 full-time employees. These structural characteristics shape how NTLA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.93 indicates NTLA 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 NTLA?

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 NTLA snapshot

As of May 15, 2026, spot at $13.39, ATM IV 82.70%, IV rank 28.90%, expected move 23.71%. The butterfly on NTLA 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 NTLA specifically: NTLA IV at 82.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a NTLA butterfly, with a market-implied 1-standard-deviation move of approximately 23.71% (roughly $3.17 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 NTLA expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTLA should anchor to the underlying notional of $13.39 per share and to the trader's directional view on NTLA stock.

NTLA butterfly setup

The NTLA 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 NTLA near $13.39, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTLA 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 NTLA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$13.00	$1.58
Sell 2	Call	$13.00	$1.58
Buy 1	Call	$14.00	$1.15

NTLA butterfly risk and reward

Net Premium / Debit: +$42.50
Max Profit (per contract): $42.50
Max Loss (per contract): -$57.50
Breakeven(s): $13.43
Risk / Reward Ratio: 0.739

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.

NTLA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NTLA. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$42.50
$2.97	-77.8%	+$42.50
$5.93	-55.7%	+$42.50
$8.89	-33.6%	+$42.50
$11.85	-11.5%	+$42.50
$14.81	+10.6%	-$57.50
$17.77	+32.7%	-$57.50
$20.73	+54.8%	-$57.50
$23.69	+76.9%	-$57.50
$26.65	+99.0%	-$57.50

When traders use butterfly on NTLA

Butterflies on NTLA are pinning bets - traders use them when they expect NTLA 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.

NTLA thesis for this butterfly

The market-implied 1-standard-deviation range for NTLA extends from approximately $10.22 on the downside to $16.56 on the upside. A NTLA long call butterfly is a pinning play: it pays maximum at the middle strike if NTLA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NTLA IV rank near 28.90% 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 NTLA at 82.70%. As a Healthcare name, NTLA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTLA-specific events.

NTLA 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. NTLA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NTLA alongside the broader basket even when NTLA-specific fundamentals are unchanged. Always rebuild the position from current NTLA chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on NTLA?: A butterfly on NTLA is the butterfly strategy applied to NTLA (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 NTLA stock trading near $13.39, the strikes shown on this page are snapped to the nearest listed NTLA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NTLA 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 NTLA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 82.70%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NTLA butterfly?: The breakeven for the NTLA butterfly priced on this page is roughly $13.43 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 NTLA market-implied 1-standard-deviation expected move is approximately 23.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NTLA?: Butterflies on NTLA are pinning bets - traders use them when they expect NTLA 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 NTLA implied volatility affect this butterfly?: NTLA ATM IV is at 82.70% with IV rank near 28.90%, 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.