SLDB Butterfly Strategy
SLDB (Solid Biosciences Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Solid Biosciences Inc. engages in developing therapies for duchenne muscular dystrophy in the United States. The company's lead product candidate is SGT-001, a gene transfer candidate, which is in a Phase I/II clinical trial to drive functional dystrophin protein expression in patients' muscles; and SGT-003, a ext-generation gene transfer candidate for the treatment of duchenne muscular dystrophy. It also engages in developing of platform technologies, including dual gene expression, a technology for packaging multiple transgenes into one vector, as well as novel capsids. The company has collaboration and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize new gene therapies for Duchenne Muscular Dystrophy. Solid Biosciences Inc. was incorporated in 2013 and is headquartered in Cambridge, Massachusetts.
SLDB (Solid Biosciences Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $575.0M, a beta of 2.47 versus the broader market, a 52-week range of 2.41-8.866, average daily share volume of 1.3M, a public-listing history dating back to 2018, approximately 100 full-time employees. These structural characteristics shape how SLDB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.47 indicates SLDB 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 SLDB?
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 SLDB snapshot
As of May 15, 2026, spot at $6.82, ATM IV 187.70%, IV rank 38.63%, expected move 53.81%. The butterfly on SLDB 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 SLDB specifically: SLDB IV at 187.70% 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 53.81% (roughly $3.67 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 SLDB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SLDB should anchor to the underlying notional of $6.82 per share and to the trader's directional view on SLDB stock.
SLDB butterfly setup
The SLDB 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 SLDB near $6.82, the first option leg uses a $6.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SLDB 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 SLDB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.48 | N/A |
| Sell 2 | Call | $6.82 | N/A |
| Buy 1 | Call | $7.16 | N/A |
SLDB 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.
SLDB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SLDB. 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 SLDB
Butterflies on SLDB are pinning bets - traders use them when they expect SLDB 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.
SLDB thesis for this butterfly
The market-implied 1-standard-deviation range for SLDB extends from approximately $3.15 on the downside to $10.49 on the upside. A SLDB long call butterfly is a pinning play: it pays maximum at the middle strike if SLDB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SLDB IV rank near 38.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SLDB should anchor more to the directional view and the expected-move geometry. As a Healthcare name, SLDB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SLDB-specific events.
SLDB 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. SLDB positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SLDB alongside the broader basket even when SLDB-specific fundamentals are unchanged. Always rebuild the position from current SLDB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SLDB?
- A butterfly on SLDB is the butterfly strategy applied to SLDB (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 SLDB stock trading near $6.82, the strikes shown on this page are snapped to the nearest listed SLDB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SLDB 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 SLDB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 187.70%), 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 SLDB butterfly?
- The breakeven for the SLDB 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 SLDB market-implied 1-standard-deviation expected move is approximately 53.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SLDB?
- Butterflies on SLDB are pinning bets - traders use them when they expect SLDB 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 SLDB implied volatility affect this butterfly?
- SLDB ATM IV is at 187.70% with IV rank near 38.63%, 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.