WGS Butterfly Strategy
WGS (GeneDx Holdings Corp.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
GeneDx Holdings Corp. is a patient centered health intelligence company. It engages in transforming healthcare by applying AI and machine learning to multidimensional, longitudinal clinical and genomic data to build dynamic models of human health and defining optimal, individualized health trajectories. The firm, through its Centrellis health intelligence platform, generates a more complete understanding of disease and wellness and provides science-driven solutions to the most pressing medical needs. The company was founded by Eric Schadt in October 2015 and is headquartered in Stamford, CT.
WGS (GeneDx Holdings Corp.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $1.16B, a beta of 2.07 versus the broader market, a 52-week range of 32.21-170.87, average daily share volume of 1.1M, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how WGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.07 indicates WGS 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 WGS?
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 WGS snapshot
As of May 15, 2026, spot at $40.59, ATM IV 71.62%, IV rank 19.98%, expected move 20.53%. The butterfly on WGS 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 28-day expiry.
Why this butterfly structure on WGS specifically: WGS IV at 71.62% is on the cheap side of its 1-year range, which favors premium-buying structures like a WGS butterfly, with a market-implied 1-standard-deviation move of approximately 20.53% (roughly $8.33 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WGS should anchor to the underlying notional of $40.59 per share and to the trader's directional view on WGS stock.
WGS butterfly setup
The WGS 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 WGS near $40.59, the first option leg uses a $39.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WGS chain at a 28-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 WGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $39.00 | $4.45 |
| Sell 2 | Call | $41.00 | $3.55 |
| Buy 1 | Call | $43.00 | $1.83 |
WGS butterfly risk and reward
- Net Premium / Debit
- +$82.50
- Max Profit (per contract)
- $262.39
- Max Loss (per contract)
- $82.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 3.181
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.
WGS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WGS. 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% | +$82.50 |
| $8.98 | -77.9% | +$82.50 |
| $17.96 | -55.8% | +$82.50 |
| $26.93 | -33.7% | +$82.50 |
| $35.90 | -11.5% | +$82.50 |
| $44.88 | +10.6% | +$82.50 |
| $53.85 | +32.7% | +$82.50 |
| $62.82 | +54.8% | +$82.50 |
| $71.80 | +76.9% | +$82.50 |
| $80.77 | +99.0% | +$82.50 |
When traders use butterfly on WGS
Butterflies on WGS are pinning bets - traders use them when they expect WGS 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.
WGS thesis for this butterfly
The market-implied 1-standard-deviation range for WGS extends from approximately $32.26 on the downside to $48.92 on the upside. A WGS long call butterfly is a pinning play: it pays maximum at the middle strike if WGS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WGS IV rank near 19.98% 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 WGS at 71.62%. As a Healthcare name, WGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WGS-specific events.
WGS 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. WGS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WGS alongside the broader basket even when WGS-specific fundamentals are unchanged. Always rebuild the position from current WGS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WGS?
- A butterfly on WGS is the butterfly strategy applied to WGS (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 WGS stock trading near $40.59, the strikes shown on this page are snapped to the nearest listed WGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WGS 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 WGS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 71.62%), the computed maximum profit is $262.39 per contract and the computed maximum loss is $82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WGS butterfly?
- The breakeven for the WGS 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 WGS market-implied 1-standard-deviation expected move is approximately 20.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WGS?
- Butterflies on WGS are pinning bets - traders use them when they expect WGS 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 WGS implied volatility affect this butterfly?
- WGS ATM IV is at 71.62% with IV rank near 19.98%, 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.