How are VIR 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 VIR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.20%), the computed maximum profit is $44.00 per contract and the computed maximum loss is -$56.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VIR butterfly?

The breakeven for the VIR butterfly priced on this page is roughly $8.56 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 VIR market-implied 1-standard-deviation expected move is approximately 17.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VIR implied volatility affect this butterfly?

VIR ATM IV is at 62.20% with IV rank near 8.95%, 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.

VIR Butterfly Strategy

VIR (Vir Biotechnology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Vir Biotechnology, Inc., a commercial-stage immunology company, develops therapeutic products to treat and prevent serious infectious diseases. It develops Sotrovimab (VIR-7832), a SARS-CoV-2-neutralizing mAbs to treat and prevent COVID-19 infection under the Xevudy brand; VIR-2218 and VIR-3434 for the treatment of hepatitis B virus; VIR-2482 for the prevention of influenza A virus; and VIR-1111 for the prevention of human immunodeficiency virus. The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited and Brii Biosciences Offshore Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with The Rockefeller University and MedImmune, Inc.; collaboration with WuXi Biologics and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals SA. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. for the manufacture of SARS-COV-2 antibodies; and clinical collaboration with Gilead Sciences, Inc. for chronic hepatitis B virus. Vir Biotechnology, Inc. was incorporated in 2016 and is headquartered in San Francisco, California.

VIR (Vir Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.57B, a beta of 1.70 versus the broader market, a 52-week range of 4.155-11.66, average daily share volume of 3.6M, a public-listing history dating back to 2019, approximately 408 full-time employees. These structural characteristics shape how VIR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.70 indicates VIR 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 VIR?

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 VIR snapshot

As of May 15, 2026, spot at $8.77, ATM IV 62.20%, IV rank 8.95%, expected move 17.83%. The butterfly on VIR 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 63-day expiry.

Why this butterfly structure on VIR specifically: VIR IV at 62.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a VIR butterfly, with a market-implied 1-standard-deviation move of approximately 17.83% (roughly $1.56 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VIR expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIR should anchor to the underlying notional of $8.77 per share and to the trader's directional view on VIR stock.

VIR butterfly setup

The VIR 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 VIR near $8.77, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIR chain at a 63-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 VIR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.00	$1.41
Sell 2	Call	$9.00	$0.85
Buy 1	Call	$9.00	$0.85

VIR butterfly risk and reward

Net Premium / Debit: -$56.00
Max Profit (per contract): $44.00
Max Loss (per contract): -$56.00
Breakeven(s): $8.56
Risk / Reward Ratio: 0.786

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.

VIR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VIR. 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	-99.9%	-$56.00
$1.95	-77.8%	-$56.00
$3.89	-55.7%	-$56.00
$5.82	-33.6%	-$56.00
$7.76	-11.5%	-$56.00
$9.70	+10.6%	+$44.00
$11.64	+32.7%	+$44.00
$13.58	+54.8%	+$44.00
$15.51	+76.9%	+$44.00
$17.45	+99.0%	+$44.00

When traders use butterfly on VIR

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

VIR thesis for this butterfly

The market-implied 1-standard-deviation range for VIR extends from approximately $7.21 on the downside to $10.33 on the upside. A VIR long call butterfly is a pinning play: it pays maximum at the middle strike if VIR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VIR IV rank near 8.95% 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 VIR at 62.20%. As a Healthcare name, VIR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIR-specific events.

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

Frequently asked questions

What is a butterfly on VIR?: A butterfly on VIR is the butterfly strategy applied to VIR (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 VIR stock trading near $8.77, the strikes shown on this page are snapped to the nearest listed VIR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VIR 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 VIR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.20%), the computed maximum profit is $44.00 per contract and the computed maximum loss is -$56.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VIR butterfly?: The breakeven for the VIR butterfly priced on this page is roughly $8.56 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 VIR market-implied 1-standard-deviation expected move is approximately 17.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on VIR?: Butterflies on VIR are pinning bets - traders use them when they expect VIR 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 VIR implied volatility affect this butterfly?: VIR ATM IV is at 62.20% with IV rank near 8.95%, 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.