NTRA Butterfly Strategy
NTRA (Natera, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. It offers Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus with a blood draw from the mother, as well as twin pregnancies for zygosity; Vistara, a single-gene mutations screening test to identify single-gene disorder; Horizon carrier screening to determine carrier status for various genetic diseases; and Spectrum to identify chromosomal anomalies or inherited genetic conditions during an in vitro fertilization cycle. The company also provides Anora miscarriage test products to analyze fetal chromosomes to understand the cause of miscarriage; and non-invasive paternity testing products to determine paternity by gestation using a blood draw from the pregnant mother and alleged father. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics in order to validate and launch tests; Signatera, a circulating tumor DNA technology that screen for a generic set of mutations independent of an individual's tumor; and Prospera used to assess organ transplant rejection. The company offers products through its direct sales force, as well as through a network of approximately 100 laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays.
NTRA (Natera, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $27.97B, a beta of 1.57 versus the broader market, a 52-week range of 131.811-256.36, average daily share volume of 1.3M, a public-listing history dating back to 2015, approximately 4K full-time employees. These structural characteristics shape how NTRA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates NTRA 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 NTRA?
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 NTRA snapshot
As of May 15, 2026, spot at $189.07, ATM IV 50.00%, IV rank 21.83%, expected move 14.33%. The butterfly on NTRA 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 NTRA specifically: NTRA IV at 50.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a NTRA butterfly, with a market-implied 1-standard-deviation move of approximately 14.33% (roughly $27.10 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 NTRA expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTRA should anchor to the underlying notional of $189.07 per share and to the trader's directional view on NTRA stock.
NTRA butterfly setup
The NTRA 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 NTRA near $189.07, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTRA 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 NTRA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $180.00 | $16.75 |
| Sell 2 | Call | $190.00 | $11.05 |
| Buy 1 | Call | $200.00 | $6.95 |
NTRA butterfly risk and reward
- Net Premium / Debit
- -$160.00
- Max Profit (per contract)
- $837.49
- Max Loss (per contract)
- -$160.00
- Breakeven(s)
- $181.60, $198.40
- Risk / Reward Ratio
- 5.234
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.
NTRA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NTRA. 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 | -100.0% | -$160.00 |
| $41.81 | -77.9% | -$160.00 |
| $83.62 | -55.8% | -$160.00 |
| $125.42 | -33.7% | -$160.00 |
| $167.22 | -11.6% | -$160.00 |
| $209.03 | +10.6% | -$160.00 |
| $250.83 | +32.7% | -$160.00 |
| $292.63 | +54.8% | -$160.00 |
| $334.44 | +76.9% | -$160.00 |
| $376.24 | +99.0% | -$160.00 |
When traders use butterfly on NTRA
Butterflies on NTRA are pinning bets - traders use them when they expect NTRA 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.
NTRA thesis for this butterfly
The market-implied 1-standard-deviation range for NTRA extends from approximately $161.97 on the downside to $216.17 on the upside. A NTRA long call butterfly is a pinning play: it pays maximum at the middle strike if NTRA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NTRA IV rank near 21.83% 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 NTRA at 50.00%. As a Healthcare name, NTRA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTRA-specific events.
NTRA 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. NTRA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NTRA alongside the broader basket even when NTRA-specific fundamentals are unchanged. Always rebuild the position from current NTRA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NTRA?
- A butterfly on NTRA is the butterfly strategy applied to NTRA (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 NTRA stock trading near $189.07, the strikes shown on this page are snapped to the nearest listed NTRA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NTRA 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 NTRA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 50.00%), the computed maximum profit is $837.49 per contract and the computed maximum loss is -$160.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NTRA butterfly?
- The breakeven for the NTRA butterfly priced on this page is roughly $181.60 and $198.40 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 NTRA market-implied 1-standard-deviation expected move is approximately 14.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NTRA?
- Butterflies on NTRA are pinning bets - traders use them when they expect NTRA 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 NTRA implied volatility affect this butterfly?
- NTRA ATM IV is at 50.00% with IV rank near 21.83%, 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.