How are TWST 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 TWST butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 91.40%), the computed maximum profit is $144.72 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TWST butterfly?

The breakeven for the TWST butterfly priced on this page is roughly $48.45 and $51.55 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 TWST market-implied 1-standard-deviation expected move is approximately 26.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TWST implied volatility affect this butterfly?

TWST ATM IV is at 91.40% with IV rank near 42.49%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

TWST Butterfly Strategy

TWST (Twist Bioscience Corporation), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

Twist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. The company's DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium. The company has collaboration agreements with Victorian Clinical Genetic Services; Vivlion GmbH.; Kyowa Kirin Pharmaceutical Research, Inc.; deepCDR Biologics AG; and Centogene N.V to develop advanced sequencing tools. It also has a research collaboration with Boehringer Ingelheim International GmbH to use proprietary antibody libraries to discover therapeutic antibodies against multiple targets. Twist Bioscience Corporation was incorporated in 2013 and is headquartered in South San Francisco, California.

TWST (Twist Bioscience Corporation) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $3.39B, a beta of 2.23 versus the broader market, a 52-week range of 23.3-66.06, average daily share volume of 1.3M, a public-listing history dating back to 2018, approximately 923 full-time employees. These structural characteristics shape how TWST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.23 indicates TWST 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 TWST?

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 TWST snapshot

As of May 15, 2026, spot at $48.87, ATM IV 91.40%, IV rank 42.49%, expected move 26.20%. The butterfly on TWST 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 TWST specifically: TWST IV at 91.40% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 26.20% (roughly $12.81 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 TWST expiries trade a higher absolute premium for lower per-day decay. Position sizing on TWST should anchor to the underlying notional of $48.87 per share and to the trader's directional view on TWST stock.

TWST butterfly setup

The TWST 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 TWST near $48.87, the first option leg uses a $47.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TWST 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 TWST shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$47.50	$6.40
Sell 2	Call	$50.00	$4.85
Buy 1	Call	$52.50	$4.25

TWST butterfly risk and reward

Net Premium / Debit: -$95.00
Max Profit (per contract): $144.72
Max Loss (per contract): -$95.00
Breakeven(s): $48.45, $51.55
Risk / Reward Ratio: 1.523

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.

TWST butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TWST. 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%	-$95.00
$10.81	-77.9%	-$95.00
$21.62	-55.8%	-$95.00
$32.42	-33.7%	-$95.00
$43.23	-11.5%	-$95.00
$54.03	+10.6%	-$95.00
$64.84	+32.7%	-$95.00
$75.64	+54.8%	-$95.00
$86.44	+76.9%	-$95.00
$97.25	+99.0%	-$95.00

When traders use butterfly on TWST

Butterflies on TWST are pinning bets - traders use them when they expect TWST 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.

TWST thesis for this butterfly

The market-implied 1-standard-deviation range for TWST extends from approximately $36.06 on the downside to $61.68 on the upside. A TWST long call butterfly is a pinning play: it pays maximum at the middle strike if TWST settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TWST IV rank near 42.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TWST should anchor more to the directional view and the expected-move geometry. As a Healthcare name, TWST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TWST-specific events.

TWST 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. TWST positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TWST alongside the broader basket even when TWST-specific fundamentals are unchanged. Always rebuild the position from current TWST chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on TWST?: A butterfly on TWST is the butterfly strategy applied to TWST (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 TWST stock trading near $48.87, the strikes shown on this page are snapped to the nearest listed TWST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TWST 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 TWST butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 91.40%), the computed maximum profit is $144.72 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TWST butterfly?: The breakeven for the TWST butterfly priced on this page is roughly $48.45 and $51.55 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 TWST market-implied 1-standard-deviation expected move is approximately 26.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TWST?: Butterflies on TWST are pinning bets - traders use them when they expect TWST 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 TWST implied volatility affect this butterfly?: TWST ATM IV is at 91.40% with IV rank near 42.49%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.