REGN Butterfly Strategy
REGN (Regeneron Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Regeneron Pharmaceuticals, Inc. is a global biopharmaceutical enterprise focused on discovering, inventing, developing, manufacturing, and bringing to market medical treatments for a wide array of illnesses. Its therapeutic portfolio includes EYLEA, an injection used to treat various ophthalmic conditions such as wet age-related macular degeneration, diabetic macular edema, myopic choroidal neovascularization, diabetic retinopathy, and macular edema resulting from retinal vein occlusion (both central and branch). Other significant offerings are Dupixent, an injectable solution for atopic dermatitis and asthma in both adults and pediatric patients; Libtayo, indicated for metastatic or locally advanced cutaneous squamous cell carcinoma; Praluent, an injection prescribed for adults with heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease; REGEN-COV for COVID-19; and Kevzara, a solution targeting rheumatoid arthritis in adult patients. Furthermore, Regeneron provides Inmazeb for infections caused by Zaire ebolavirus; ARCALYST, an injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and Muckle-Wells syndrome; and ZALTRAP, an intravenous infusion used in the treatment of metastatic colorectal cancer. In addition to its existing product lineup, the company is actively engaged in developing novel product candidates aimed at addressing unmet medical needs in areas such as ocular diseases, allergic and inflammatory conditions, cardiovascular and metabolic disorders, infectious diseases, rare diseases, cancer, pain management, and hematologic conditions. Regeneron maintains extensive collaboration and licensing agreements with a diverse range of partners, including Sanofi, Bayer, Teva Pharmaceutical Industries Ltd., Mitsubishi Tanabe Pharma Corporation, Alnylam Pharmaceuticals, Inc., Roche Pharmaceuticals, and Kiniksa Pharmaceuticals, Ltd.
REGN (Regeneron Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $65.20B, a trailing P/E of 14.88, a beta of 0.24 versus the broader market, a 52-week range of 518.9-821.11, average daily share volume of 964K, a public-listing history dating back to 1991, approximately 15K full-time employees. These structural characteristics shape how REGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.24 indicates REGN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. REGN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on REGN?
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 REGN snapshot
As of June 30, 2026, spot at $624.44, ATM IV 34.74%, IV rank 37.78%, expected move 9.96%. The butterfly on REGN 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 31-day expiry.
Why this butterfly structure on REGN specifically: REGN IV at 34.74% 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 9.96% (roughly $62.19 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on REGN should anchor to the underlying notional of $624.44 per share and to the trader's directional view on REGN stock.
REGN butterfly setup
The REGN 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 REGN near $624.44, the first option leg uses a $590.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REGN chain at a 31-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 REGN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $590.00 | $49.15 |
| Sell 2 | Call | $620.00 | $29.15 |
| Buy 1 | Call | $660.00 | $13.70 |
REGN butterfly risk and reward
- Net Premium / Debit
- -$455.00
- Max Profit (per contract)
- $2,414.29
- Max Loss (per contract)
- -$1,455.00
- Breakeven(s)
- $594.53, $645.45
- Risk / Reward Ratio
- 1.659
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.
REGN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on REGN. 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 | -100.0% | -$455.00 |
| $138.08 | -77.9% | -$455.00 |
| $276.14 | -55.8% | -$455.00 |
| $414.21 | -33.7% | -$455.00 |
| $552.27 | -11.6% | -$455.00 |
| $690.34 | +10.6% | -$1,455.00 |
| $828.41 | +32.7% | -$1,455.00 |
| $966.47 | +54.8% | -$1,455.00 |
| $1,104.54 | +76.9% | -$1,455.00 |
| $1,242.60 | +99.0% | -$1,455.00 |
When traders use butterfly on REGN
Butterflies on REGN are pinning bets - traders use them when they expect REGN 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.
REGN thesis for this butterfly
The market-implied 1-standard-deviation range for REGN extends from approximately $562.25 on the downside to $686.63 on the upside. A REGN long call butterfly is a pinning play: it pays maximum at the middle strike if REGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current REGN IV rank near 37.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on REGN should anchor more to the directional view and the expected-move geometry. As a Healthcare name, REGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REGN-specific events.
REGN 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. REGN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REGN alongside the broader basket even when REGN-specific fundamentals are unchanged. Always rebuild the position from current REGN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on REGN?
- A butterfly on REGN is the butterfly strategy applied to REGN (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 REGN stock trading near $624.44, the strikes shown on this page are snapped to the nearest listed REGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REGN 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 REGN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.74%), the computed maximum profit is $2,414.29 per contract and the computed maximum loss is -$1,455.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a REGN butterfly?
- The breakeven for the REGN butterfly priced on this page is roughly $594.53 and $645.45 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 REGN market-implied 1-standard-deviation expected move is approximately 9.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on REGN?
- Butterflies on REGN are pinning bets - traders use them when they expect REGN 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 REGN implied volatility affect this butterfly?
- REGN ATM IV is at 34.74% with IV rank near 37.78%, 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.