TECX Butterfly Strategy
TECX (Tectonic Therapeutic, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Tectonic Therapeutic, Inc., a clinical stage biotechnology company focuses on the discovery and development of therapeutic proteins and antibodies to modulate the activity of G-protein coupled receptors(GPCRs). It offers GEODe technology platform to enable the discovery and development of GPCR-targeted biologic medicines. The company's pipeline products include RXFP1 agonist, which is in ongoing phase 1a and 1b for the indication of heart failure with preserved ejection fraction; GPCR antagonist for indication of hereditary hemorrhagic telangiectasia; bi-functional GPCR modulator for indication of fibrosis; and GPCR modulators. Tectonic Therapeutic, Inc. is based in Watertown, Massachusetts.
TECX (Tectonic Therapeutic, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $543.6M, a beta of 1.21 versus the broader market, a 52-week range of 14.39-36.03, average daily share volume of 275K, a public-listing history dating back to 2018, approximately 51 full-time employees. These structural characteristics shape how TECX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places TECX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on TECX?
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 TECX snapshot
As of May 15, 2026, spot at $28.11, ATM IV 106.90%, IV rank 13.26%, expected move 30.65%. The butterfly on TECX 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 TECX specifically: TECX IV at 106.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a TECX butterfly, with a market-implied 1-standard-deviation move of approximately 30.65% (roughly $8.61 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 TECX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TECX should anchor to the underlying notional of $28.11 per share and to the trader's directional view on TECX stock.
TECX butterfly setup
The TECX 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 TECX near $28.11, the first option leg uses a $26.70 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TECX 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 TECX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.70 | N/A |
| Sell 2 | Call | $28.11 | N/A |
| Buy 1 | Call | $29.52 | N/A |
TECX 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.
TECX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TECX. 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 TECX
Butterflies on TECX are pinning bets - traders use them when they expect TECX 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.
TECX thesis for this butterfly
The market-implied 1-standard-deviation range for TECX extends from approximately $19.50 on the downside to $36.72 on the upside. A TECX long call butterfly is a pinning play: it pays maximum at the middle strike if TECX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TECX IV rank near 13.26% 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 TECX at 106.90%. As a Healthcare name, TECX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TECX-specific events.
TECX 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. TECX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TECX alongside the broader basket even when TECX-specific fundamentals are unchanged. Always rebuild the position from current TECX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TECX?
- A butterfly on TECX is the butterfly strategy applied to TECX (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 TECX stock trading near $28.11, the strikes shown on this page are snapped to the nearest listed TECX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TECX 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 TECX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 106.90%), 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 TECX butterfly?
- The breakeven for the TECX 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 TECX market-implied 1-standard-deviation expected move is approximately 30.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TECX?
- Butterflies on TECX are pinning bets - traders use them when they expect TECX 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 TECX implied volatility affect this butterfly?
- TECX ATM IV is at 106.90% with IV rank near 13.26%, 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.