How are NVCR 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 NVCR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.00%), the computed maximum profit is $39.46 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NVCR butterfly?

The breakeven for the NVCR butterfly priced on this page is roughly $16.53 at expiration, derived from the August 14, 2026 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 NVCR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NVCR implied volatility affect this butterfly?

NVCR ATM IV is at 63.00% with IV rank near 32.06%, 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.

NVCR Butterfly Strategy

NVCR (Novocure Ltd), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, France, Japan, Greater China, and internationally. Its TTFields devices include Optune Gio, Optune Lua, and Optune Pax. The company also has ongoing clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Baar, Switzerland.

NVCR (Novocure Ltd) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $2.05B, a beta of 0.98 versus the broader market, a 52-week range of 9.82-21.451, average daily share volume of 1.7M, a public-listing history dating back to 2015, approximately 2K full-time employees. These structural characteristics shape how NVCR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.98 places NVCR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on NVCR?

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.

NVCR snapshot

As of August 14, 2026, spot at $16.99, ATM IV 63.00%, IV rank 32.06%, expected move 18.06%. The butterfly on NVCR below is built from the August 14, 2026 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 NVCR specifically: NVCR IV at 63.00% 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 18.06% (roughly $3.07 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 NVCR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVCR should anchor to the underlying notional of $16.99 per share and to the trader's directional view on NVCR stock.

NVCR butterfly setup

The NVCR butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NVCR at $16.99 on that close, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVCR 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 NVCR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$16.00	$2.10
Sell 2	Call	$17.00	$1.33
Buy 1	Call	$18.00	$1.08

NVCR butterfly risk and reward

Net Premium / Debit: -$52.50
Max Profit (per contract): $39.46
Max Loss (per contract): -$52.50
Breakeven(s): $16.53
Risk / Reward Ratio: 0.752

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.

NVCR butterfly payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$52.50
$3.77	-77.8%	-$52.50
$7.52	-55.7%	-$52.50
$11.28	-33.6%	-$52.50
$15.03	-11.5%	-$52.50
$18.79	+10.6%	-$52.50
$22.54	+32.7%	-$52.50
$26.30	+54.8%	-$52.50
$30.05	+76.9%	-$52.50
$33.81	+99.0%	-$52.50

When traders use butterfly on NVCR

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

NVCR thesis for this butterfly

The market-implied 1-standard-deviation range for NVCR extends from approximately $13.92 on the downside to $20.06 on the upside. A NVCR long call butterfly is a pinning play: it pays maximum at the middle strike if NVCR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NVCR IV rank near 32.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NVCR should anchor more to the directional view and the expected-move geometry. As a Healthcare name, NVCR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVCR-specific events.

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

Frequently asked questions

What is a butterfly on NVCR?: A butterfly on NVCR is the butterfly strategy applied to NVCR (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 NVCR stock at $16.99 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NVCR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NVCR 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 NVCR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.00%), the computed maximum profit is $39.46 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NVCR butterfly?: The breakeven for the NVCR butterfly priced on this page is roughly $16.53 at expiration, derived from the August 14, 2026 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 NVCR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NVCR?: Butterflies on NVCR are pinning bets - traders use them when they expect NVCR 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 NVCR implied volatility affect this butterfly?: NVCR ATM IV is at 63.00% with IV rank near 32.06%, 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.