NUVB Butterfly Strategy
NUVB (Nuvation Bio Inc.), in the Healthcare sector, (Biotechnology industry), listed on NYSE.
Nuvation Bio Inc. functions as a clinical-stage biopharmaceutical enterprise committed to discovering and advancing therapeutic solutions for oncological conditions. Its foremost experimental compound, NUV-422, is a small molecule designed to inhibit cyclin-dependent kinases (CDK)2, CDK4, and CDK6. The company's development pipeline further encompasses NUV-868, an orally administered, selective small molecule BET inhibitor that epigenetically influences proteins critical for tumor proliferation and cellular differentiation; NUV-569, a unique oral small molecule targeting the Wee1 kinase to facilitate DNA damage repair; and NUV-1182, an antagonist of adenosine receptors. Additionally, Nuvation Bio is progressing a sophisticated drug-drug conjugate (DDC) platform, engineered to deliver a poly ADP ribose polymerase (PARP) inhibitor in conjunction with existing anti-cancer warheads, particularly for the treatment of ER-positive breast and ovarian cancers. Established in 2018, the firm was initially named RePharmation Inc. before rebranding as Nuvation Bio Inc. in April 2019, and its central operations are based in New York, New York.
NUVB (Nuvation Bio Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.23B, a beta of 1.53 versus the broader market, a 52-week range of 2.57-9.75, average daily share volume of 5.7M, a public-listing history dating back to 2020, approximately 305 full-time employees. These structural characteristics shape how NUVB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.53 indicates NUVB 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 NUVB?
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.
NUVB snapshot
As of August 14, 2026, spot at $6.24, ATM IV 85.20%, IV rank 38.88%, expected move 24.43%. The butterfly on NUVB 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 NUVB specifically: NUVB IV at 85.20% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 24.43% (roughly $1.52 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 NUVB expiries trade a higher absolute premium for lower per-day decay. Position sizing on NUVB should anchor to the underlying notional of $6.24 per share and to the trader's directional view on NUVB stock.
NUVB butterfly setup
The NUVB 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 NUVB at $6.24 on that close, the first option leg uses a $5.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NUVB 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 NUVB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.93 | N/A |
| Sell 2 | Call | $6.24 | N/A |
| Buy 1 | Call | $6.55 | N/A |
NUVB 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.
NUVB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NUVB. 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 NUVB
Butterflies on NUVB are pinning bets - traders use them when they expect NUVB 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.
NUVB thesis for this butterfly
The market-implied 1-standard-deviation range for NUVB extends from approximately $4.72 on the downside to $7.76 on the upside. A NUVB long call butterfly is a pinning play: it pays maximum at the middle strike if NUVB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NUVB IV rank near 38.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NUVB should anchor more to the directional view and the expected-move geometry. As a Healthcare name, NUVB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NUVB-specific events.
NUVB 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. NUVB positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NUVB alongside the broader basket even when NUVB-specific fundamentals are unchanged. Always rebuild the position from current NUVB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NUVB?
- A butterfly on NUVB is the butterfly strategy applied to NUVB (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 NUVB stock at $6.24 on the most recent close, the strikes shown on this page are snapped to the nearest listed NUVB chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NUVB 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 NUVB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 85.20%), 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 NUVB butterfly?
- The breakeven for the NUVB 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 NUVB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NUVB?
- Butterflies on NUVB are pinning bets - traders use them when they expect NUVB 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 NUVB implied volatility affect this butterfly?
- NUVB ATM IV is at 85.20% with IV rank near 38.88%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.