TVRD Butterfly Strategy
TVRD (Tvardi Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Tvardi Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel, oral small molecule therapies targeting STAT3 to treat fibrosis-driven diseases with significant unmet need. Their lead candidate, TTI-101, is currently in Phase 2 clinical trials for idiopathic pulmonary fibrosis (IPF) and hepatocellular carcinoma (HCC).
TVRD (Tvardi Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $37.1M, a beta of 0.30 versus the broader market, a 52-week range of 2.75-43.65, average daily share volume of 49K, a public-listing history dating back to 2025, approximately 17 full-time employees. These structural characteristics shape how TVRD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.30 indicates TVRD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on TVRD?
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 TVRD snapshot
As of May 15, 2026, spot at $4.02, ATM IV 21.60%, IV rank 0.93%, expected move 6.19%. The butterfly on TVRD 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 TVRD specifically: TVRD IV at 21.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a TVRD butterfly, with a market-implied 1-standard-deviation move of approximately 6.19% (roughly $0.25 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 TVRD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TVRD should anchor to the underlying notional of $4.02 per share and to the trader's directional view on TVRD stock.
TVRD butterfly setup
The TVRD 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 TVRD near $4.02, the first option leg uses a $3.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TVRD 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 TVRD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.82 | N/A |
| Sell 2 | Call | $4.02 | N/A |
| Buy 1 | Call | $4.22 | N/A |
TVRD 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.
TVRD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TVRD. 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 TVRD
Butterflies on TVRD are pinning bets - traders use them when they expect TVRD 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.
TVRD thesis for this butterfly
The market-implied 1-standard-deviation range for TVRD extends from approximately $3.77 on the downside to $4.27 on the upside. A TVRD long call butterfly is a pinning play: it pays maximum at the middle strike if TVRD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TVRD IV rank near 0.93% 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 TVRD at 21.60%. As a Healthcare name, TVRD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TVRD-specific events.
TVRD 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. TVRD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TVRD alongside the broader basket even when TVRD-specific fundamentals are unchanged. Always rebuild the position from current TVRD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TVRD?
- A butterfly on TVRD is the butterfly strategy applied to TVRD (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 TVRD stock trading near $4.02, the strikes shown on this page are snapped to the nearest listed TVRD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TVRD 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 TVRD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.60%), 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 TVRD butterfly?
- The breakeven for the TVRD 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 TVRD market-implied 1-standard-deviation expected move is approximately 6.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TVRD?
- Butterflies on TVRD are pinning bets - traders use them when they expect TVRD 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 TVRD implied volatility affect this butterfly?
- TVRD ATM IV is at 21.60% with IV rank near 0.93%, 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.