SIBN Butterfly Strategy
SIBN (SI-BONE, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
SI-BONE, Inc., a medical device company, develops implantable devices used to solve musculoskeletal disorders of the sacropelvic anatomy in the United States and internationally. It offers iFuse, a minimally invasive surgical implant system to address sacroiliac joint dysfunction and degeneration, adult deformity, and pelvic ring traumatic fractures. The company also provides iFuse-3D, a titanium implant that combines the triangular cross-section of the iFuse implant with the proprietary 3D-printed porous surface and fenestrated design; and iFuse-TORQ, a set of 3D-printed threaded implants designed to treat fractures of the pelvis and for minimally invasive sacroiliac joint fusion. It markets its products primarily with a direct sales force, as well as through distributors. The company was incorporated in 2008 and is headquartered in Santa Clara, California.
SIBN (SI-BONE, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $626.5M, a beta of 0.67 versus the broader market, a 52-week range of 11.48-21.89, average daily share volume of 713K, a public-listing history dating back to 2018, approximately 349 full-time employees. These structural characteristics shape how SIBN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates SIBN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on SIBN?
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 SIBN snapshot
As of May 15, 2026, spot at $14.13, ATM IV 61.40%, IV rank 8.69%, expected move 17.60%. The butterfly on SIBN 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 SIBN specifically: SIBN IV at 61.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a SIBN butterfly, with a market-implied 1-standard-deviation move of approximately 17.60% (roughly $2.49 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 SIBN expiries trade a higher absolute premium for lower per-day decay. Position sizing on SIBN should anchor to the underlying notional of $14.13 per share and to the trader's directional view on SIBN stock.
SIBN butterfly setup
The SIBN 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 SIBN near $14.13, the first option leg uses a $13.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SIBN 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 SIBN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.42 | N/A |
| Sell 2 | Call | $14.13 | N/A |
| Buy 1 | Call | $14.84 | N/A |
SIBN 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.
SIBN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SIBN. 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 SIBN
Butterflies on SIBN are pinning bets - traders use them when they expect SIBN 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.
SIBN thesis for this butterfly
The market-implied 1-standard-deviation range for SIBN extends from approximately $11.64 on the downside to $16.62 on the upside. A SIBN long call butterfly is a pinning play: it pays maximum at the middle strike if SIBN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SIBN IV rank near 8.69% 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 SIBN at 61.40%. As a Healthcare name, SIBN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SIBN-specific events.
SIBN 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. SIBN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SIBN alongside the broader basket even when SIBN-specific fundamentals are unchanged. Always rebuild the position from current SIBN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SIBN?
- A butterfly on SIBN is the butterfly strategy applied to SIBN (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 SIBN stock trading near $14.13, the strikes shown on this page are snapped to the nearest listed SIBN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SIBN 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 SIBN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 61.40%), 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 SIBN butterfly?
- The breakeven for the SIBN 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 SIBN market-implied 1-standard-deviation expected move is approximately 17.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SIBN?
- Butterflies on SIBN are pinning bets - traders use them when they expect SIBN 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 SIBN implied volatility affect this butterfly?
- SIBN ATM IV is at 61.40% with IV rank near 8.69%, 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.