PRGO Butterfly Strategy
PRGO (Perrigo Company plc), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NYSE.
Perrigo Company plc provides over-the-counter health and wellness solutions in the United States, Europe, and internationally. The company operates through Consumer Self-Care Americas and Consumer Self-Care International segments. It offers upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and oral electrolyte beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. The company also offers healthy lifestyle products, such as smoking cessation and well-being products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women’s health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; and other miscellaneous self-care products. It sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, and Compeed brands.
PRGO (Perrigo Company plc) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $1.76B, a beta of 0.54 versus the broader market, a 52-week range of 9.23-24.61, average daily share volume of 3.2M, a public-listing history dating back to 1991, approximately 8K full-time employees. These structural characteristics shape how PRGO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates PRGO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PRGO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PRGO?
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.
PRGO snapshot
As of August 14, 2026, spot at $12.93, ATM IV 47.70%, IV rank 13.13%, expected move 13.68%. The butterfly on PRGO 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 PRGO specifically: PRGO IV at 47.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a PRGO butterfly, with a market-implied 1-standard-deviation move of approximately 13.68% (roughly $1.77 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 PRGO expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRGO should anchor to the underlying notional of $12.93 per share and to the trader's directional view on PRGO stock.
PRGO butterfly setup
The PRGO 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 PRGO at $12.93 on that close, the first option leg uses a $12.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRGO 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 PRGO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.28 | N/A |
| Sell 2 | Call | $12.93 | N/A |
| Buy 1 | Call | $13.58 | N/A |
PRGO 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.
PRGO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PRGO. 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 PRGO
Butterflies on PRGO are pinning bets - traders use them when they expect PRGO 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.
PRGO thesis for this butterfly
The market-implied 1-standard-deviation range for PRGO extends from approximately $11.16 on the downside to $14.70 on the upside. A PRGO long call butterfly is a pinning play: it pays maximum at the middle strike if PRGO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PRGO IV rank near 13.13% 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 PRGO at 47.70%. As a Healthcare name, PRGO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRGO-specific events.
PRGO 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. PRGO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRGO alongside the broader basket even when PRGO-specific fundamentals are unchanged. Always rebuild the position from current PRGO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PRGO?
- A butterfly on PRGO is the butterfly strategy applied to PRGO (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 PRGO stock at $12.93 on the most recent close, the strikes shown on this page are snapped to the nearest listed PRGO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PRGO 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 PRGO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.70%), 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 PRGO butterfly?
- The breakeven for the PRGO 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 PRGO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PRGO?
- Butterflies on PRGO are pinning bets - traders use them when they expect PRGO 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 PRGO implied volatility affect this butterfly?
- PRGO ATM IV is at 47.70% with IV rank near 13.13%, 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.