RVPH Butterfly Strategy
RVPH (Reviva Pharmaceuticals Holdings, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Reviva Pharmaceuticals Holdings, Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes next-generation therapeutics for diseases targeting unmet medical needs in the areas of central nervous system, respiratory, cardiovascular, metabolic, and inflammatory diseases. The company's lead product candidate is RP5063, which is in Phase III clinical trials for the treatment of schizophrenia, as well as completed Phase I clinical trials to treat bipolar disorder, major depressive disorder, attentiondeficit/hyperactivity disorder, behavioral and psychotic symptoms of dementia or Alzheimer's disease, Parkinson's disease psychosis, attention deficit hyperactivity disorder, pulmonary arterial hypertension, and idiopathic pulmonary fibrosis. It is also developing RP1208 that is in pre-clinical development studies for the treatment of depression and obesity. The company is headquartered in Cupertino, California.
RVPH (Reviva Pharmaceuticals Holdings, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.2M, a beta of 0.75 versus the broader market, a 52-week range of 0.26-23.2, average daily share volume of 599K, a public-listing history dating back to 2018, approximately 14 full-time employees. These structural characteristics shape how RVPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places RVPH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on RVPH?
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 RVPH snapshot
As of May 15, 2026, spot at $12.63, ATM IV 352.70%, IV rank 91.49%, expected move 101.12%. The butterfly on RVPH 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 RVPH specifically: RVPH IV at 352.70% is rich versus its 1-year range, which makes a premium-buying RVPH butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 101.12% (roughly $12.77 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 RVPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on RVPH should anchor to the underlying notional of $12.63 per share and to the trader's directional view on RVPH stock.
RVPH butterfly setup
The RVPH 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 RVPH near $12.63, 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 RVPH 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 RVPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.00 | N/A |
| Sell 2 | Call | $12.63 | N/A |
| Buy 1 | Call | $13.26 | N/A |
RVPH 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.
RVPH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RVPH. 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 RVPH
Butterflies on RVPH are pinning bets - traders use them when they expect RVPH 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.
RVPH thesis for this butterfly
The market-implied 1-standard-deviation range for RVPH extends from approximately $-0.14 on the downside to $25.40 on the upside. A RVPH long call butterfly is a pinning play: it pays maximum at the middle strike if RVPH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RVPH IV rank near 91.49% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on RVPH at 352.70%. As a Healthcare name, RVPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RVPH-specific events.
RVPH 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. RVPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RVPH alongside the broader basket even when RVPH-specific fundamentals are unchanged. Always rebuild the position from current RVPH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RVPH?
- A butterfly on RVPH is the butterfly strategy applied to RVPH (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 RVPH stock trading near $12.63, the strikes shown on this page are snapped to the nearest listed RVPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RVPH 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 RVPH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 352.70%), 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 RVPH butterfly?
- The breakeven for the RVPH 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 RVPH market-implied 1-standard-deviation expected move is approximately 101.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RVPH?
- Butterflies on RVPH are pinning bets - traders use them when they expect RVPH 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 RVPH implied volatility affect this butterfly?
- RVPH ATM IV is at 352.70% with IV rank near 91.49%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.