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 of solutions for urothelial and specialty cancers. It offers RTGel, a novel proprietary polymeric biocompatible, reverse thermal gelation hydrogel technology; Mitomycin a generic drug used off-label as an adjuvant chemotherapy for the treatment of low-grade NMIBC after trans-urethral resection of bladder tumor; Zusduri, a sustained-release formulation of mitomycin for the treatment of non-muscle invasive bladder cancer (NMIBC); and Jelmyto for pyelocalyceal solutions. The company’s lead product candidates are UGN-103, which is in phase 3 of clinical trial for intravesical solution; and UGN-104 that is in phase 3 of clinical trial for pyelocalyceal solution designed for the treatment of several forms of non-muscle invasive urothelial cancer that include low-grade upper tract urothelial cancer and low-grade intermediate risk NMIBC. It is also developing UGN-301, UGN-301+UGN 201, and UGN-301+gemcitabine that are in phase 1 of clinical trial for the treatment of high-grade NMIBC. The company has license agreement with 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 licensing and supply agreement with medac Gesellschaft für klinische Spezialpräparate m.b.H. to develop UGN-103 and UGN-104. UroGen Pharma Ltd. was incorporated in 2004 and is headquartered in Princeton, New Jersey.
URGN (UroGen Pharma Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.68B, a beta of 1.62 versus the broader market, a 52-week range of 12.73-36.08, average daily share volume of 798K, a public-listing history dating back to 2017, approximately 291 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 1.62 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 June 30, 2026, spot at $37.17, ATM IV 87.10%, IV rank 41.24%, expected move 24.97%. 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 17-day expiry.
Why this butterfly structure on URGN specifically: URGN IV at 87.10% 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 24.97% (roughly $9.28 on the underlying). The 17-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 $37.17 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 $37.17, the first option leg uses a $35.00 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 17-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 | $35.00 | $3.20 |
| Sell 2 | Call | $37.00 | $2.60 |
| Buy 1 | Call | $39.00 | $1.90 |
URGN butterfly risk and reward
- Net Premium / Debit
- +$10.00
- Max Profit (per contract)
- $208.82
- Max Loss (per contract)
- $10.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 20.882
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% | +$10.00 |
| $8.23 | -77.9% | +$10.00 |
| $16.44 | -55.8% | +$10.00 |
| $24.66 | -33.7% | +$10.00 |
| $32.88 | -11.5% | +$10.00 |
| $41.10 | +10.6% | +$10.00 |
| $49.31 | +32.7% | +$10.00 |
| $57.53 | +54.8% | +$10.00 |
| $65.75 | +76.9% | +$10.00 |
| $73.97 | +99.0% | +$10.00 |
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 $27.89 on the downside to $46.45 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 41.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on URGN should anchor more to the directional view and the expected-move geometry. 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 $37.17, 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 87.10%), the computed maximum profit is $208.82 per contract and the computed maximum loss is $10.00 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 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 URGN market-implied 1-standard-deviation expected move is approximately 24.97%; 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 87.10% with IV rank near 41.24%, 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.