SGMO Butterfly Strategy
SGMO (Sangamo Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Sangamo Therapeutics, Inc., a clinical-stage biotechnology company, focuses on translating science into genomic medicines that transform patients' lives using platform technologies in gene therapy, cell therapy, genome editing, and genome regulation. The company offers zinc finger protein (ZFP), a technology platform for making zinc finger nucleases, which are proteins used in modifying DNA sequences by adding or knocking out specific genes; and ZFP transcription factors proteins used in increasing or decreasing gene expression. It develops SB-525, which is in Phase III AFFINE clinical trial for the treatment of hemophilia A; ST-920, a gene therapy, which is in Phase I/II STAAR clinical trials for the treatment of Fabry disease; and SAR445136, a cell therapy, which is in Phase I/II PRECIZN-1 clinical trials for the treatment of sickle cell disease. The company also develops TX200, chimeric antigen receptor for the treatment of HLA-A2 mismatched kidney transplant rejection; KITE-037, a cell therapy for the treatment of cancer; ST-501 for the treatment of tauopathies; and ST-502 for the treatment of synucleinopathies, including Parkinson's disease and neuromuscular disease. It has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; and California Institute for Regenerative Medicine.
SGMO (Sangamo Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $58.4M, a beta of 1.04 versus the broader market, a 52-week range of 0.1-0.77, average daily share volume of 10.5M, a public-listing history dating back to 2000, approximately 183 full-time employees. These structural characteristics shape how SGMO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.04 places SGMO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SGMO?
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 SGMO snapshot
As of May 15, 2026, spot at $1.50, ATM IV 21.50%, IV rank 1.44%, expected move 6.16%. The butterfly on SGMO 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 34-day expiry.
Why this butterfly structure on SGMO specifically: SGMO IV at 21.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a SGMO butterfly, with a market-implied 1-standard-deviation move of approximately 6.16% (roughly $0.09 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SGMO expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGMO should anchor to the underlying notional of $1.50 per share and to the trader's directional view on SGMO stock.
SGMO butterfly setup
The SGMO 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 SGMO near $1.50, the first option leg uses a $1.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGMO chain at a 34-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 SGMO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.42 | N/A |
| Sell 2 | Call | $1.50 | N/A |
| Buy 1 | Call | $1.58 | N/A |
SGMO 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.
SGMO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SGMO. 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 SGMO
Butterflies on SGMO are pinning bets - traders use them when they expect SGMO 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.
SGMO thesis for this butterfly
The market-implied 1-standard-deviation range for SGMO extends from approximately $1.41 on the downside to $1.59 on the upside. A SGMO long call butterfly is a pinning play: it pays maximum at the middle strike if SGMO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SGMO IV rank near 1.44% 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 SGMO at 21.50%. As a Healthcare name, SGMO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGMO-specific events.
SGMO 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. SGMO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGMO alongside the broader basket even when SGMO-specific fundamentals are unchanged. Always rebuild the position from current SGMO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SGMO?
- A butterfly on SGMO is the butterfly strategy applied to SGMO (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 SGMO stock trading near $1.50, the strikes shown on this page are snapped to the nearest listed SGMO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGMO 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 SGMO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.50%), 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 SGMO butterfly?
- The breakeven for the SGMO 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 SGMO market-implied 1-standard-deviation expected move is approximately 6.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SGMO?
- Butterflies on SGMO are pinning bets - traders use them when they expect SGMO 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 SGMO implied volatility affect this butterfly?
- SGMO ATM IV is at 21.50% with IV rank near 1.44%, 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.