How are XENE 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 XENE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $186.01 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XENE butterfly?

The breakeven for the XENE butterfly priced on this page is roughly $52.92 and $57.07 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 XENE market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XENE implied volatility affect this butterfly?

XENE ATM IV is at 42.90% with IV rank near 5.83%, 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.

XENE Butterfly Strategy

XENE (Xenon Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN496, A Kv7 potassium channel opener that is Phase III clinical trials for the treatment of KCNQ2 developmental and epilepsy encephalopathy; and XEN1101, A Kv7 potassium channel opener, which is in Phase II clinical trial for the treatment of epilepsy and other neurological disorders. The company's product candidates also comprise NBI-921352, a selective Nav1.6 sodium channel inhibitor that is in Phase II clinical trials for the treatment of SCN8A developmental and epileptic encephalopathy, and other potential indications, including adult focal epilepsy; and XEN007, A central nervous system-acting calcium channel modulator, which is in Phase II clinical trials. It has a license and collaboration agreement with the Neurocrine Biosciences, Inc. to develop treatments for epilepsy; and with Flexion Therapeutics, Inc. to develop PCRX301 (XEN402, a Nav1.7 inhibitor) for the treatment of post-operative pain. Xenon Pharmaceuticals Inc. was incorporated in 1996 and is headquartered in Burnaby, Canada.

XENE (Xenon Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $4.41B, a beta of 0.65 versus the broader market, a 52-week range of 28.19-63.95, average daily share volume of 1.4M, a public-listing history dating back to 2014, approximately 316 full-time employees. These structural characteristics shape how XENE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates XENE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on XENE?

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 XENE snapshot

As of May 15, 2026, spot at $54.39, ATM IV 42.90%, IV rank 5.83%, expected move 12.30%. The butterfly on XENE 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 XENE specifically: XENE IV at 42.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a XENE butterfly, with a market-implied 1-standard-deviation move of approximately 12.30% (roughly $6.69 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 XENE expiries trade a higher absolute premium for lower per-day decay. Position sizing on XENE should anchor to the underlying notional of $54.39 per share and to the trader's directional view on XENE stock.

XENE butterfly setup

The XENE 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 XENE near $54.39, the first option leg uses a $52.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XENE 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 XENE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$52.50	$5.45
Sell 2	Call	$55.00	$4.10
Buy 1	Call	$57.50	$3.18

XENE butterfly risk and reward

Net Premium / Debit: -$42.50
Max Profit (per contract): $186.01
Max Loss (per contract): -$42.50
Breakeven(s): $52.92, $57.07
Risk / Reward Ratio: 4.377

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.

XENE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on XENE. 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%	-$42.50
$12.03	-77.9%	-$42.50
$24.06	-55.8%	-$42.50
$36.08	-33.7%	-$42.50
$48.11	-11.5%	-$42.50
$60.13	+10.6%	-$42.50
$72.16	+32.7%	-$42.50
$84.18	+54.8%	-$42.50
$96.21	+76.9%	-$42.50
$108.23	+99.0%	-$42.50

When traders use butterfly on XENE

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

XENE thesis for this butterfly

The market-implied 1-standard-deviation range for XENE extends from approximately $47.70 on the downside to $61.08 on the upside. A XENE long call butterfly is a pinning play: it pays maximum at the middle strike if XENE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XENE IV rank near 5.83% 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 XENE at 42.90%. As a Healthcare name, XENE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XENE-specific events.

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

Frequently asked questions

What is a butterfly on XENE?: A butterfly on XENE is the butterfly strategy applied to XENE (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 XENE stock trading near $54.39, the strikes shown on this page are snapped to the nearest listed XENE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XENE 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 XENE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $186.01 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XENE butterfly?: The breakeven for the XENE butterfly priced on this page is roughly $52.92 and $57.07 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 XENE market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on XENE?: Butterflies on XENE are pinning bets - traders use them when they expect XENE 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 XENE implied volatility affect this butterfly?: XENE ATM IV is at 42.90% with IV rank near 5.83%, 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.