VERA Butterfly Strategy
VERA (Vera Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Vera Therapeutics, Inc. is a clinical-stage biotechnology company focused on the development and commercialization of treatments for significant immunological disorders, primarily within the United States. Their leading therapeutic candidate is atacicept, a fusion protein that patients self-administer as a subcutaneous injection. This drug is currently undergoing Phase IIb clinical trials to treat immunoglobulin A nephropathy. The company is also advancing MAU868, a monoclonal antibody in Phase 2 clinical development, designed to combat BK viremia infections. Founded in 2016 and based in Brisbane, California, the organization operated as Trucode Gene Repair, Inc. until it rebranded to Vera Therapeutics, Inc. in April 2020.
VERA (Vera Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.05B, a beta of 0.95 versus the broader market, a 52-week range of 19.066-56.05, average daily share volume of 1.2M, a public-listing history dating back to 2021, approximately 152 full-time employees. These structural characteristics shape how VERA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places VERA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on VERA?
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 VERA snapshot
As of June 30, 2026, spot at $43.48, ATM IV 161.00%, IV rank 35.03%, expected move 46.16%. The butterfly on VERA 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 VERA specifically: VERA IV at 161.00% 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 46.16% (roughly $20.07 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 VERA expiries trade a higher absolute premium for lower per-day decay. Position sizing on VERA should anchor to the underlying notional of $43.48 per share and to the trader's directional view on VERA stock.
VERA butterfly setup
The VERA 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 VERA near $43.48, the first option leg uses a $41.31 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VERA 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 VERA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $41.31 | N/A |
| Sell 2 | Call | $43.48 | N/A |
| Buy 1 | Call | $45.65 | N/A |
VERA 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.
VERA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VERA. 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 VERA
Butterflies on VERA are pinning bets - traders use them when they expect VERA 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.
VERA thesis for this butterfly
The market-implied 1-standard-deviation range for VERA extends from approximately $23.41 on the downside to $63.55 on the upside. A VERA long call butterfly is a pinning play: it pays maximum at the middle strike if VERA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VERA IV rank near 35.03% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on VERA should anchor more to the directional view and the expected-move geometry. As a Healthcare name, VERA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VERA-specific events.
VERA 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. VERA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VERA alongside the broader basket even when VERA-specific fundamentals are unchanged. Always rebuild the position from current VERA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VERA?
- A butterfly on VERA is the butterfly strategy applied to VERA (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 VERA stock trading near $43.48, the strikes shown on this page are snapped to the nearest listed VERA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VERA 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 VERA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 161.00%), 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 VERA butterfly?
- The breakeven for the VERA 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 VERA market-implied 1-standard-deviation expected move is approximately 46.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VERA?
- Butterflies on VERA are pinning bets - traders use them when they expect VERA 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 VERA implied volatility affect this butterfly?
- VERA ATM IV is at 161.00% with IV rank near 35.03%, 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.