TENX Butterfly Strategy
TENX (Tenax Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Tenax Therapeutics, Inc., a specialty pharmaceutical company, engages in identifying, developing, and commercializing products for cardiovascular and pulmonary diseases in the United States and Canada. It develops TNX-103 and TNX-102 (levosimendan) that have completed phase II clinical trials for the treatment of patients with pulmonary hypertension associated with heart failure with preserved ejection fraction and associated pulmonary hypertension; and TNX-201 (imatinib), a tyrosine kinase inhibitor for the treatment of pulmonary arterial hypertension. The company was formerly known as Oxygen Biotherapeutics, Inc. and changed its name to Tenax Therapeutics, Inc. in September 2014. Tenax Therapeutics, Inc. was founded in 1967 and is headquartered in Morrisville, North Carolina.
TENX (Tenax Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $204.8M, a beta of 1.00 versus the broader market, a 52-week range of 5.34-18.38, average daily share volume of 504K, a public-listing history dating back to 1994, approximately 4 full-time employees. These structural characteristics shape how TENX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places TENX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on TENX?
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 TENX snapshot
As of May 15, 2026, spot at $11.77, ATM IV 87.40%, expected move 25.06%. The butterfly on TENX 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 TENX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for TENX is inferred from ATM IV at 87.40% alone, with a market-implied 1-standard-deviation move of approximately 25.06% (roughly $2.95 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 TENX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TENX should anchor to the underlying notional of $11.77 per share and to the trader's directional view on TENX stock.
TENX butterfly setup
The TENX 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 TENX near $11.77, the first option leg uses a $11.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TENX 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 TENX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.18 | N/A |
| Sell 2 | Call | $11.77 | N/A |
| Buy 1 | Call | $12.36 | N/A |
TENX 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.
TENX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TENX. 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 TENX
Butterflies on TENX are pinning bets - traders use them when they expect TENX 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.
TENX thesis for this butterfly
The market-implied 1-standard-deviation range for TENX extends from approximately $8.82 on the downside to $14.72 on the upside. A TENX long call butterfly is a pinning play: it pays maximum at the middle strike if TENX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Healthcare name, TENX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TENX-specific events.
TENX 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. TENX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TENX alongside the broader basket even when TENX-specific fundamentals are unchanged. Always rebuild the position from current TENX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TENX?
- A butterfly on TENX is the butterfly strategy applied to TENX (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 TENX stock trading near $11.77, the strikes shown on this page are snapped to the nearest listed TENX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TENX 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 TENX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 87.40%), 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 TENX butterfly?
- The breakeven for the TENX 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 TENX market-implied 1-standard-deviation expected move is approximately 25.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TENX?
- Butterflies on TENX are pinning bets - traders use them when they expect TENX 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 TENX implied volatility affect this butterfly?
- Current TENX ATM IV is 87.40%; IV rank context is unavailable in the current snapshot.