SGRY Butterfly Strategy
SGRY (Surgery Partners, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
Surgery Partners, Inc., through its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company operates through two segments, Surgical Facility Services and Ancillary Services. Its surgical facilities comprise ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including gastroenterology, general surgery, ophthalmology, orthopedics, and pain management. The company's surgical hospitals also provide ancillary services, such as diagnostic imaging, pharmacy, laboratory, obstetrics, oncology, physical therapy, and wound care; and ancillary services, which consist of multi-specialty physician practices, urgent care facilities, and anesthesia services. As of December 31, 2021, it owned or operated a portfolio of 126 surgical facilities, including 108 ambulatory surgical centers and 18 surgical hospitals in 31 states. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.
SGRY (Surgery Partners, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.87B, a beta of 1.99 versus the broader market, a 52-week range of 11.41-24.18, average daily share volume of 1.6M, a public-listing history dating back to 2015, approximately 15K full-time employees. These structural characteristics shape how SGRY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.99 indicates SGRY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on SGRY?
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 SGRY snapshot
As of May 15, 2026, spot at $13.89, ATM IV 53.10%, IV rank 30.10%, expected move 15.22%. The butterfly on SGRY 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 SGRY specifically: SGRY IV at 53.10% 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 15.22% (roughly $2.11 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 SGRY expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGRY should anchor to the underlying notional of $13.89 per share and to the trader's directional view on SGRY stock.
SGRY butterfly setup
The SGRY 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 SGRY near $13.89, the first option leg uses a $13.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGRY 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 SGRY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.20 | N/A |
| Sell 2 | Call | $13.89 | N/A |
| Buy 1 | Call | $14.58 | N/A |
SGRY 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.
SGRY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SGRY. 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 SGRY
Butterflies on SGRY are pinning bets - traders use them when they expect SGRY 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.
SGRY thesis for this butterfly
The market-implied 1-standard-deviation range for SGRY extends from approximately $11.78 on the downside to $16.00 on the upside. A SGRY long call butterfly is a pinning play: it pays maximum at the middle strike if SGRY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SGRY IV rank near 30.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SGRY should anchor more to the directional view and the expected-move geometry. As a Healthcare name, SGRY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGRY-specific events.
SGRY 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. SGRY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGRY alongside the broader basket even when SGRY-specific fundamentals are unchanged. Always rebuild the position from current SGRY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SGRY?
- A butterfly on SGRY is the butterfly strategy applied to SGRY (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 SGRY stock trading near $13.89, the strikes shown on this page are snapped to the nearest listed SGRY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGRY 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 SGRY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), 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 SGRY butterfly?
- The breakeven for the SGRY 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 SGRY market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SGRY?
- Butterflies on SGRY are pinning bets - traders use them when they expect SGRY 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 SGRY implied volatility affect this butterfly?
- SGRY ATM IV is at 53.10% with IV rank near 30.10%, 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.