OMER Butterfly Strategy
OMER (Omeros Corporation), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Omeros Corporation, a commercial-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting inflammation, complement-mediated diseases, cancers related to dysfunction of the immune system, and addictive and compulsive disorders. The company's clinical programs include Narsoplimab (OMS721/MASP-2) that has completed pivotal studies for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (HSCT-TMA); that is in Phase III clinical trial for immunoglobulin A nephropathy (IgAN) and atypical hemolytic uremic syndrome (aHUS); and Phase II clinical trial to treat COVID-19. Its clinical programs also consist of PPAR? (OMS405) that is in Phase II to treat opioid and nicotine addiction; PDE7 (OMS527), which is in Phase I trial for treating addiction and compulsive disorders, and movement disorders; and MASP-3 (OMS906) that is in Phase I trial for paroxysmal nocturnal hemoglobinuria (PNH) and other alternative pathway disorders. The company's preclinical programs comprise MASP-2-small-molecule inhibitors used for the treatment of aHUS, IgAN, HSCT-TMA, and age-related macular degeneration; longer-acting second generation antibody targeting MASP-2; and MASP-3-small-molecule inhibitors to treat PNH and other alternative pathway disorders. Its preclinical programs also include GPR174 Inhibitors and Chimeric Antigen Receptor (CAR) T-Cell and Adoptive T-Cell Therapies for various cancers; and G protein-coupled receptor targets for treating immunologic, immuno-oncologic, metabolic, CNS, cardiovascular, musculoskeletal, and other disorders. The company was incorporated in 1994 and is headquartered in Seattle, Washington.
OMER (Omeros Corporation) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.04B, a trailing P/E of 12.00, a beta of 2.66 versus the broader market, a 52-week range of 2.95-17.65, average daily share volume of 1.0M, a public-listing history dating back to 2009, approximately 202 full-time employees. These structural characteristics shape how OMER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.66 indicates OMER 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 OMER?
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 OMER snapshot
As of May 15, 2026, spot at $12.27, ATM IV 89.50%, IV rank 20.78%, expected move 25.66%. The butterfly on OMER 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 OMER specifically: OMER IV at 89.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a OMER butterfly, with a market-implied 1-standard-deviation move of approximately 25.66% (roughly $3.15 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 OMER expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMER should anchor to the underlying notional of $12.27 per share and to the trader's directional view on OMER stock.
OMER butterfly setup
The OMER 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 OMER near $12.27, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMER 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 OMER shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.00 | $1.30 |
| Sell 2 | Call | $12.00 | $1.30 |
| Buy 1 | Call | $13.00 | $1.00 |
OMER butterfly risk and reward
- Net Premium / Debit
- +$30.00
- Max Profit (per contract)
- $30.00
- Max Loss (per contract)
- -$70.00
- Breakeven(s)
- $12.30
- Risk / Reward Ratio
- 0.429
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.
OMER butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OMER. 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% | +$30.00 |
| $2.72 | -77.8% | +$30.00 |
| $5.43 | -55.7% | +$30.00 |
| $8.15 | -33.6% | +$30.00 |
| $10.86 | -11.5% | +$30.00 |
| $13.57 | +10.6% | -$70.00 |
| $16.28 | +32.7% | -$70.00 |
| $18.99 | +54.8% | -$70.00 |
| $21.70 | +76.9% | -$70.00 |
| $24.42 | +99.0% | -$70.00 |
When traders use butterfly on OMER
Butterflies on OMER are pinning bets - traders use them when they expect OMER 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.
OMER thesis for this butterfly
The market-implied 1-standard-deviation range for OMER extends from approximately $9.12 on the downside to $15.42 on the upside. A OMER long call butterfly is a pinning play: it pays maximum at the middle strike if OMER settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OMER IV rank near 20.78% 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 OMER at 89.50%. As a Healthcare name, OMER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMER-specific events.
OMER 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. OMER positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OMER alongside the broader basket even when OMER-specific fundamentals are unchanged. Always rebuild the position from current OMER chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OMER?
- A butterfly on OMER is the butterfly strategy applied to OMER (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 OMER stock trading near $12.27, the strikes shown on this page are snapped to the nearest listed OMER chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OMER 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 OMER butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 89.50%), the computed maximum profit is $30.00 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OMER butterfly?
- The breakeven for the OMER butterfly priced on this page is roughly $12.30 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 OMER market-implied 1-standard-deviation expected move is approximately 25.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OMER?
- Butterflies on OMER are pinning bets - traders use them when they expect OMER 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 OMER implied volatility affect this butterfly?
- OMER ATM IV is at 89.50% with IV rank near 20.78%, 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.