SOPH Butterfly Strategy
SOPH (SOPHiA GENETICS S.A.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
SOPHiA GENETICS S.A. operates as a specialized company within the healthcare technology sector. The firm provides the SOPHiA DDM platform, a cloud-native Software-as-a-Service (SaaS) solution engineered to analyze diverse multimodal datasets and various diagnostic inputs, thereby extracting valuable insights. This platform, together with its related offerings and services, is widely adopted by hospitals, laboratories, and biopharmaceutical organizations across the globe. Founded in 2011, SOPHiA GENETICS S.A. is headquartered in Saint-Sulpice, Switzerland.
SOPH (SOPHiA GENETICS S.A.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $395.2M, a beta of 0.99 versus the broader market, a 52-week range of 2.81-5.94, average daily share volume of 149K, a public-listing history dating back to 2021, approximately 423 full-time employees. These structural characteristics shape how SOPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places SOPH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on SOPH?
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 SOPH snapshot
As of June 29, 2026, spot at $5.91, ATM IV 139.40%, IV rank 50.07%, expected move 39.96%. The butterfly on SOPH 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 18-day expiry.
Why this butterfly structure on SOPH specifically: SOPH IV at 139.40% 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 39.96% (roughly $2.36 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SOPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOPH should anchor to the underlying notional of $5.91 per share and to the trader's directional view on SOPH stock.
SOPH butterfly setup
The SOPH 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 SOPH near $5.91, the first option leg uses a $5.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOPH chain at a 18-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 SOPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.61 | N/A |
| Sell 2 | Call | $5.91 | N/A |
| Buy 1 | Call | $6.21 | N/A |
SOPH 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.
SOPH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SOPH. 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 SOPH
Butterflies on SOPH are pinning bets - traders use them when they expect SOPH 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.
SOPH thesis for this butterfly
The market-implied 1-standard-deviation range for SOPH extends from approximately $3.55 on the downside to $8.27 on the upside. A SOPH long call butterfly is a pinning play: it pays maximum at the middle strike if SOPH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SOPH IV rank near 50.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SOPH should anchor more to the directional view and the expected-move geometry. As a Healthcare name, SOPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOPH-specific events.
SOPH 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. SOPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SOPH alongside the broader basket even when SOPH-specific fundamentals are unchanged. Always rebuild the position from current SOPH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SOPH?
- A butterfly on SOPH is the butterfly strategy applied to SOPH (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 SOPH stock trading near $5.91, the strikes shown on this page are snapped to the nearest listed SOPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SOPH 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 SOPH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 139.40%), 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 SOPH butterfly?
- The breakeven for the SOPH 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 SOPH market-implied 1-standard-deviation expected move is approximately 39.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SOPH?
- Butterflies on SOPH are pinning bets - traders use them when they expect SOPH 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 SOPH implied volatility affect this butterfly?
- SOPH ATM IV is at 139.40% with IV rank near 50.07%, 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.