TFX Butterfly Strategy
TFX (Teleflex Incorporated), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NYSE.
Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. It provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. The company also offers interventional products, which consists of various coronary catheters, structural heart therapies, and peripheral intervention and cardiac assist products that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded catheters, Guideline and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. It provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. The company also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; and respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings. It provides urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services.
TFX (Teleflex Incorporated) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $5.76B, a beta of 0.82 versus the broader market, a 52-week range of 100.18-139.67, average daily share volume of 928K, a public-listing history dating back to 1980, approximately 14K full-time employees. These structural characteristics shape how TFX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places TFX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TFX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TFX?
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 TFX snapshot
As of May 15, 2026, spot at $130.37, ATM IV 38.10%, IV rank 4.41%, expected move 10.92%. The butterfly on TFX 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 TFX specifically: TFX IV at 38.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a TFX butterfly, with a market-implied 1-standard-deviation move of approximately 10.92% (roughly $14.24 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 TFX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TFX should anchor to the underlying notional of $130.37 per share and to the trader's directional view on TFX stock.
TFX butterfly setup
The TFX 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 TFX near $130.37, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TFX 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 TFX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $125.00 | $9.00 |
| Sell 2 | Call | $130.00 | $5.85 |
| Buy 1 | Call | $135.00 | $4.15 |
TFX butterfly risk and reward
- Net Premium / Debit
- -$145.00
- Max Profit (per contract)
- $326.99
- Max Loss (per contract)
- -$145.00
- Breakeven(s)
- $126.45, $133.55
- Risk / Reward Ratio
- 2.255
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.
TFX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TFX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$145.00 |
| $28.83 | -77.9% | -$145.00 |
| $57.66 | -55.8% | -$145.00 |
| $86.48 | -33.7% | -$145.00 |
| $115.31 | -11.6% | -$145.00 |
| $144.13 | +10.6% | -$145.00 |
| $172.96 | +32.7% | -$145.00 |
| $201.78 | +54.8% | -$145.00 |
| $230.61 | +76.9% | -$145.00 |
| $259.43 | +99.0% | -$145.00 |
When traders use butterfly on TFX
Butterflies on TFX are pinning bets - traders use them when they expect TFX 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.
TFX thesis for this butterfly
The market-implied 1-standard-deviation range for TFX extends from approximately $116.13 on the downside to $144.61 on the upside. A TFX long call butterfly is a pinning play: it pays maximum at the middle strike if TFX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TFX IV rank near 4.41% 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 TFX at 38.10%. As a Healthcare name, TFX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TFX-specific events.
TFX 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. TFX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TFX alongside the broader basket even when TFX-specific fundamentals are unchanged. Always rebuild the position from current TFX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TFX?
- A butterfly on TFX is the butterfly strategy applied to TFX (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 TFX stock trading near $130.37, the strikes shown on this page are snapped to the nearest listed TFX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TFX 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 TFX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.10%), the computed maximum profit is $326.99 per contract and the computed maximum loss is -$145.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TFX butterfly?
- The breakeven for the TFX butterfly priced on this page is roughly $126.45 and $133.55 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 TFX market-implied 1-standard-deviation expected move is approximately 10.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TFX?
- Butterflies on TFX are pinning bets - traders use them when they expect TFX 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 TFX implied volatility affect this butterfly?
- TFX ATM IV is at 38.10% with IV rank near 4.41%, 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.