TRAX Butterfly Strategy
TRAX (First Tracks Biotherapeutics Inc), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
First Tracks Biotherapeutics, Inc., situated in San Diego, California, specializes in pioneering new immunology-based treatments. The firm is actively involved in the discovery and progression of therapeutics aimed at combating autoimmune and inflammatory disorders, currently advancing programs like rosnilimab, ANB033, and ANB101 through their clinical stages.
TRAX (First Tracks Biotherapeutics Inc) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.61B, a beta of 3.37 versus the broader market, a 52-week range of 14.72-49.91, average daily share volume of 627K, a public-listing history dating back to 2026, approximately 104 full-time employees. These structural characteristics shape how TRAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.37 indicates TRAX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on TRAX?
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.
TRAX snapshot
As of August 14, 2026, spot at $45.20, ATM IV 94.40%, expected move 27.06%. The butterfly on TRAX 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 TRAX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for TRAX is inferred from ATM IV at 94.40% alone, with a market-implied 1-standard-deviation move of approximately 27.06% (roughly $12.23 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 TRAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRAX should anchor to the underlying notional of $45.20 per share and to the trader's directional view on TRAX stock.
TRAX butterfly setup
The TRAX 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 TRAX at $45.20 on that close, the first option leg uses a $42.94 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRAX 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 TRAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $42.94 | N/A |
| Sell 2 | Call | $45.20 | N/A |
| Buy 1 | Call | $47.46 | N/A |
TRAX 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.
TRAX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TRAX. 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 TRAX
Butterflies on TRAX are pinning bets - traders use them when they expect TRAX 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.
TRAX thesis for this butterfly
The market-implied 1-standard-deviation range for TRAX extends from approximately $32.97 on the downside to $57.43 on the upside. A TRAX long call butterfly is a pinning play: it pays maximum at the middle strike if TRAX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Healthcare name, TRAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRAX-specific events.
TRAX 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. TRAX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TRAX alongside the broader basket even when TRAX-specific fundamentals are unchanged. Always rebuild the position from current TRAX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TRAX?
- A butterfly on TRAX is the butterfly strategy applied to TRAX (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 TRAX stock at $45.20 on the most recent close, the strikes shown on this page are snapped to the nearest listed TRAX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TRAX 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 TRAX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 94.40%), 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 TRAX butterfly?
- The breakeven for the TRAX 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 TRAX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TRAX?
- Butterflies on TRAX are pinning bets - traders use them when they expect TRAX 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 TRAX implied volatility affect this butterfly?
- Current TRAX ATM IV is 94.40%; IV rank context is unavailable in the current snapshot.