URGN Butterfly Strategy
URGN (UroGen Pharma Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
UroGen Pharma Ltd., a biotechnology company, engages in the development and commercialization novel solutions for specialty cancers and urothelial diseases. It offers RTGel, a polymeric biocompatible and reverse thermal gelation hydrogel to improve therapeutic profiles of existing drugs; and Jelmyto for pyelocalyceal solution. The company's lead product candidate is UGN-102, which is in Phase III clinical trials for the treatment of several forms of non-muscle invasive urothelial cancer that include low-grade upper tract urothelial carcinoma and low-grade non-muscle invasive bladder cancer. It is also developing UGN-301 for the treatment of high-grade non-muscle invasive bladder cancer. The company has a license agreement with Allergan Pharmaceuticals International Limited for developing and commercializing pharmaceutical products that contain RTGel and clostridial toxins; Agenus Inc. to develop, make, use, sell, import, and commercialize products of Agenus for the treatment of cancers of the urinary tract via intravesical delivery; and strategic research collaboration with MD Anderson to advance investigational treatment for high-grade bladder cancer. UroGen Pharma Ltd. was incorporated in 2004 and is based in Princeton, New Jersey.
URGN (UroGen Pharma Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.51B, a beta of 1.59 versus the broader market, a 52-week range of 3.42-32.37, average daily share volume of 891K, a public-listing history dating back to 2017, approximately 234 full-time employees. These structural characteristics shape how URGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.59 indicates URGN 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 URGN?
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 URGN snapshot
As of May 15, 2026, spot at $28.67, ATM IV 100.70%, IV rank 15.74%, expected move 28.87%. The butterfly on URGN 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 URGN specifically: URGN IV at 100.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a URGN butterfly, with a market-implied 1-standard-deviation move of approximately 28.87% (roughly $8.28 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 URGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on URGN should anchor to the underlying notional of $28.67 per share and to the trader's directional view on URGN stock.
URGN butterfly setup
The URGN 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 URGN near $28.67, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URGN 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 URGN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $27.00 | $4.50 |
| Sell 2 | Call | $29.00 | $4.00 |
| Buy 1 | Call | $30.00 | $3.78 |
URGN butterfly risk and reward
- Net Premium / Debit
- -$27.50
- Max Profit (per contract)
- $161.79
- Max Loss (per contract)
- -$27.50
- Breakeven(s)
- $27.28
- Risk / Reward Ratio
- 5.883
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.
URGN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on URGN. 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% | -$27.50 |
| $6.35 | -77.9% | -$27.50 |
| $12.69 | -55.8% | -$27.50 |
| $19.02 | -33.6% | -$27.50 |
| $25.36 | -11.5% | -$27.50 |
| $31.70 | +10.6% | +$72.50 |
| $38.04 | +32.7% | +$72.50 |
| $44.38 | +54.8% | +$72.50 |
| $50.71 | +76.9% | +$72.50 |
| $57.05 | +99.0% | +$72.50 |
When traders use butterfly on URGN
Butterflies on URGN are pinning bets - traders use them when they expect URGN 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.
URGN thesis for this butterfly
The market-implied 1-standard-deviation range for URGN extends from approximately $20.39 on the downside to $36.95 on the upside. A URGN long call butterfly is a pinning play: it pays maximum at the middle strike if URGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current URGN IV rank near 15.74% 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 URGN at 100.70%. As a Healthcare name, URGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URGN-specific events.
URGN 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. URGN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URGN alongside the broader basket even when URGN-specific fundamentals are unchanged. Always rebuild the position from current URGN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on URGN?
- A butterfly on URGN is the butterfly strategy applied to URGN (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 URGN stock trading near $28.67, the strikes shown on this page are snapped to the nearest listed URGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are URGN 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 URGN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 100.70%), the computed maximum profit is $161.79 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URGN butterfly?
- The breakeven for the URGN butterfly priced on this page is roughly $27.28 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 URGN market-implied 1-standard-deviation expected move is approximately 28.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on URGN?
- Butterflies on URGN are pinning bets - traders use them when they expect URGN 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 URGN implied volatility affect this butterfly?
- URGN ATM IV is at 100.70% with IV rank near 15.74%, 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.