TBRG Butterfly Strategy
TBRG (TruBridge, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
TruBridge, Inc. provides healthcare solutions and services for community hospitals, clinics, and other healthcare systems in the United States and internationally. The company operates in three segments: Revenue Cycle Management (RCM), Electronic Health Record (HER), and Patient Engagement. It focuses on providing RCM solutions for care settings, regardless of primary healthcare information solutions provider along with business management, consulting, managed IT services, and analytics and business intelligence. The company provides acute care solutions and related services for community hospitals, and physician clinics; and patient engagement and empowerment technology solutions to improve patient outcomes and engagement strategies with care providers. In addition, it offers patient liability estimates eligibility verification, claim scrubbing and submission, remittance management, denial/audit management, and contract management; and offers RCM services, such as accounts receivable management, private pay service, medical coding, revenue cycle consulting, and other additional insurance and patient billing services. Further, it offers consulting and business management services; managed IT services; encoder solutions; patient management; financial accounting; clinical; patient care; and enterprise applications.
TBRG (TruBridge, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $387.6M, a trailing P/E of 85.52, a beta of 1.31 versus the broader market, a 52-week range of 13.88-26.51, average daily share volume of 278K, a public-listing history dating back to 2002, approximately 3K full-time employees. These structural characteristics shape how TBRG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates TBRG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 85.52 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on TBRG?
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 TBRG snapshot
As of May 15, 2026, spot at $25.87, ATM IV 11.20%, IV rank 1.12%, expected move 3.21%. The butterfly on TBRG 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 TBRG specifically: TBRG IV at 11.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a TBRG butterfly, with a market-implied 1-standard-deviation move of approximately 3.21% (roughly $0.83 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 TBRG expiries trade a higher absolute premium for lower per-day decay. Position sizing on TBRG should anchor to the underlying notional of $25.87 per share and to the trader's directional view on TBRG stock.
TBRG butterfly setup
The TBRG 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 TBRG near $25.87, the first option leg uses a $24.58 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TBRG 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 TBRG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.58 | N/A |
| Sell 2 | Call | $25.87 | N/A |
| Buy 1 | Call | $27.16 | N/A |
TBRG 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.
TBRG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TBRG. 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 TBRG
Butterflies on TBRG are pinning bets - traders use them when they expect TBRG 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.
TBRG thesis for this butterfly
The market-implied 1-standard-deviation range for TBRG extends from approximately $25.04 on the downside to $26.70 on the upside. A TBRG long call butterfly is a pinning play: it pays maximum at the middle strike if TBRG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TBRG IV rank near 1.12% 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 TBRG at 11.20%. As a Healthcare name, TBRG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TBRG-specific events.
TBRG 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. TBRG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TBRG alongside the broader basket even when TBRG-specific fundamentals are unchanged. Always rebuild the position from current TBRG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TBRG?
- A butterfly on TBRG is the butterfly strategy applied to TBRG (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 TBRG stock trading near $25.87, the strikes shown on this page are snapped to the nearest listed TBRG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TBRG 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 TBRG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 11.20%), 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 TBRG butterfly?
- The breakeven for the TBRG 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 TBRG market-implied 1-standard-deviation expected move is approximately 3.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TBRG?
- Butterflies on TBRG are pinning bets - traders use them when they expect TBRG 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 TBRG implied volatility affect this butterfly?
- TBRG ATM IV is at 11.20% with IV rank near 1.12%, 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.