RGNX Butterfly Strategy
RGNX (REGENXBIO Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
REGENXBIO Inc., a clinical-stage biotechnology company, provides gene therapy product candidates to deliver genes to cells to address genetic defects or to enable cells in the body to produce therapeutic proteins or antibodies that are intended to impact disease. Its gene therapy product candidates are based on NAV Technology Platform, a proprietary adeno-associated virus gene delivery platform. The company's lead product candidate is RGX-314, which is in Phase III clinical trial for the treatment of wet age-related macular degeneration. It is also developing RGX-121 that is in Phase I/II clinical trial to treat mucopolysaccharidosis type II;RGX-111, which is in Phase I/II clinical trial for treating mucopolysaccharidosis type I;RGX-181 which is in pre clinic stage for the treatment of late-infantile neuronal ceroid lipofuscinosis type II disease;RGX-202, to treat Duchenne muscular dystrophy which is in phase I/II clinical trial; and RGX-381, to treat the ocular manifestations of CLN2 disease which is in preclinical stage. REGENXBIO Inc. also licenses its NAV Technology Platform to other biotechnology and pharmaceutical companies; and has a collaboration and license agreement with Neurimmune AG to develop novel gene therapies. REGENXBIO Inc. was founded in 2008 and is headquartered in Rockville, Maryland.
RGNX (REGENXBIO Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $518.2M, a beta of 1.12 versus the broader market, a 52-week range of 7.35-16.19, average daily share volume of 812K, a public-listing history dating back to 2015, approximately 353 full-time employees. These structural characteristics shape how RGNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places RGNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on RGNX?
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 RGNX snapshot
As of May 15, 2026, spot at $5.75, ATM IV 81.70%, IV rank 8.38%, expected move 23.42%. The butterfly on RGNX 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 63-day expiry.
Why this butterfly structure on RGNX specifically: RGNX IV at 81.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a RGNX butterfly, with a market-implied 1-standard-deviation move of approximately 23.42% (roughly $1.35 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RGNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on RGNX should anchor to the underlying notional of $5.75 per share and to the trader's directional view on RGNX stock.
RGNX butterfly setup
The RGNX 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 RGNX near $5.75, the first option leg uses a $5.46 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RGNX chain at a 63-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 RGNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.46 | N/A |
| Sell 2 | Call | $5.75 | N/A |
| Buy 1 | Call | $6.04 | N/A |
RGNX 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.
RGNX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RGNX. 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 RGNX
Butterflies on RGNX are pinning bets - traders use them when they expect RGNX 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.
RGNX thesis for this butterfly
The market-implied 1-standard-deviation range for RGNX extends from approximately $4.40 on the downside to $7.10 on the upside. A RGNX long call butterfly is a pinning play: it pays maximum at the middle strike if RGNX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RGNX IV rank near 8.38% 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 RGNX at 81.70%. As a Healthcare name, RGNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RGNX-specific events.
RGNX 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. RGNX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RGNX alongside the broader basket even when RGNX-specific fundamentals are unchanged. Always rebuild the position from current RGNX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RGNX?
- A butterfly on RGNX is the butterfly strategy applied to RGNX (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 RGNX stock trading near $5.75, the strikes shown on this page are snapped to the nearest listed RGNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RGNX 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 RGNX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 81.70%), 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 RGNX butterfly?
- The breakeven for the RGNX butterfly priced on this page is no defined breakeven on the modeled curve 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 RGNX market-implied 1-standard-deviation expected move is approximately 23.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RGNX?
- Butterflies on RGNX are pinning bets - traders use them when they expect RGNX 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 RGNX implied volatility affect this butterfly?
- RGNX ATM IV is at 81.70% with IV rank near 8.38%, 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.