PROF Butterfly Strategy
PROF (Profound Medical Corp.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Profound Medical Corp., through its subsidiaries, is a commercial-stage medical technology firm specializing in the development of magnetic resonance (MR)-guided ablation solutions. These innovative procedures are designed to treat conditions such as prostate disease and uterine fibroids, as well as providing palliative pain relief. The company markets its solutions across Canada, Germany, the United States, and Finland. Its flagship product, the TULSA-PRO system, is specifically designed for use with magnetic resonance imaging (MRI) scanners within hospital settings and other treatment centers. Additionally, Profound Medical offers Sonalleve, a therapeutic platform that addresses uterine fibroids – including through non-invasive methods – and provides palliative relief for pain linked to bone metastases. The company's primary operations are headquartered in Mississauga, Canada.
PROF (Profound Medical Corp.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $251.8M, a beta of 0.53 versus the broader market, a 52-week range of 3.76-8.95, average daily share volume of 88K, a public-listing history dating back to 2019, approximately 162 full-time employees. These structural characteristics shape how PROF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates PROF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on PROF?
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.
PROF snapshot
As of August 14, 2026, spot at $6.71, ATM IV 93.50%, IV rank 21.97%, expected move 26.81%. The butterfly on PROF 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 PROF specifically: PROF IV at 93.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a PROF butterfly, with a market-implied 1-standard-deviation move of approximately 26.81% (roughly $1.80 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 PROF expiries trade a higher absolute premium for lower per-day decay. Position sizing on PROF should anchor to the underlying notional of $6.71 per share and to the trader's directional view on PROF stock.
PROF butterfly setup
The PROF 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 PROF at $6.71 on that close, the first option leg uses a $6.37 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PROF 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 PROF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.37 | N/A |
| Sell 2 | Call | $6.71 | N/A |
| Buy 1 | Call | $7.05 | N/A |
PROF 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.
PROF butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PROF. 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 PROF
Butterflies on PROF are pinning bets - traders use them when they expect PROF 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.
PROF thesis for this butterfly
The market-implied 1-standard-deviation range for PROF extends from approximately $4.91 on the downside to $8.51 on the upside. A PROF long call butterfly is a pinning play: it pays maximum at the middle strike if PROF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PROF IV rank near 21.97% 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 PROF at 93.50%. As a Healthcare name, PROF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PROF-specific events.
PROF 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. PROF positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PROF alongside the broader basket even when PROF-specific fundamentals are unchanged. Always rebuild the position from current PROF chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PROF?
- A butterfly on PROF is the butterfly strategy applied to PROF (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 PROF stock at $6.71 on the most recent close, the strikes shown on this page are snapped to the nearest listed PROF chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PROF 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 PROF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 93.50%), 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 PROF butterfly?
- The breakeven for the PROF 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 PROF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PROF?
- Butterflies on PROF are pinning bets - traders use them when they expect PROF 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 PROF implied volatility affect this butterfly?
- PROF ATM IV is at 93.50% with IV rank near 21.97%, 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.