STLN Butterfly Strategy
STLN (Starling Oncology, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
Starling Oncology, Inc., formerly The Oncology Institute, is a value-based oncology company advancing cancer care in the community setting. Founded in 2007, the company offers cutting-edge, evidence-based cancer treatments, including clinical trials and transfusions, to a large patient population. It operates as an integrated oncology platform serving patients, providers, and health plans across multiple markets with a focus on delivering high-quality, patient-centered care.
STLN (Starling Oncology, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $631.9M, a beta of 0.00 versus the broader market, a 52-week range of 2.32-7.05, average daily share volume of 1.2M, a public-listing history dating back to 2026. These structural characteristics shape how STLN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates STLN 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 STLN?
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.
STLN snapshot
As of August 14, 2026, spot at $6.45, ATM IV 76.10%, expected move 21.82%. The butterfly on STLN below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on STLN specifically: IV rank is unavailable in the current snapshot, so regime-based timing for STLN is inferred from ATM IV at 76.10% alone, with a market-implied 1-standard-deviation move of approximately 21.82% (roughly $1.41 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STLN expiries trade a higher absolute premium for lower per-day decay. Position sizing on STLN should anchor to the underlying notional of $6.45 per share and to the trader's directional view on STLN stock.
STLN butterfly setup
The STLN 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 STLN at $6.45 on that close, the first option leg uses a $6.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STLN chain at a 35-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 STLN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.13 | N/A |
| Sell 2 | Call | $6.45 | N/A |
| Buy 1 | Call | $6.77 | N/A |
STLN 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.
STLN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on STLN. 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 STLN
Butterflies on STLN are pinning bets - traders use them when they expect STLN 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.
STLN thesis for this butterfly
The market-implied 1-standard-deviation range for STLN extends from approximately $5.04 on the downside to $7.86 on the upside. A STLN long call butterfly is a pinning play: it pays maximum at the middle strike if STLN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Healthcare name, STLN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STLN-specific events.
STLN 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. STLN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STLN alongside the broader basket even when STLN-specific fundamentals are unchanged. Always rebuild the position from current STLN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on STLN?
- A butterfly on STLN is the butterfly strategy applied to STLN (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 STLN stock at $6.45 on the most recent close, the strikes shown on this page are snapped to the nearest listed STLN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are STLN 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 STLN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 76.10%), 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 STLN butterfly?
- The breakeven for the STLN butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The STLN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on STLN?
- Butterflies on STLN are pinning bets - traders use them when they expect STLN 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 STLN implied volatility affect this butterfly?
- Current STLN ATM IV is 76.10%; IV rank context is unavailable in the current snapshot.