XERS Butterfly Strategy
XERS (Xeris Biopharma Holdings, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Xeris Biopharma Holdings, Inc. operates as a biopharmaceutical company, focusing on the development and commercialization of therapeutic solutions for individuals across the fields of endocrinology, neurology, and gastroenterology. Its current portfolio includes: Gvoke: A ready-to-administer liquid glucagon designed to treat severe hypoglycemia. Keveyis: A therapy addressing hyperkalemic, hypokalemic, and related forms of primary periodic paralysis. Recorlev: A cortisol synthesis inhibitor approved for managing endogenous hypercortisolemia in adult patients with Cushing's syndrome. Beyond its marketed products, the company maintains an active development pipeline. This pipeline seeks to broaden the applications and indications for existing treatments and introduce novel pharmaceuticals leveraging its proprietary XeriSol and XeriJect formulation technology platforms.
XERS (Xeris Biopharma Holdings, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.47B, a beta of 0.85 versus the broader market, a 52-week range of 5.25-10.08, average daily share volume of 1.8M, a public-listing history dating back to 2018, approximately 435 full-time employees. These structural characteristics shape how XERS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places XERS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on XERS?
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.
XERS snapshot
As of August 14, 2026, spot at $8.51, ATM IV 73.40%, IV rank 30.64%, expected move 21.04%. The butterfly on XERS below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on XERS specifically: XERS IV at 73.40% 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 21.04% (roughly $1.79 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XERS expiries trade a higher absolute premium for lower per-day decay. Position sizing on XERS should anchor to the underlying notional of $8.51 per share and to the trader's directional view on XERS stock.
XERS butterfly setup
The XERS 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 XERS at $8.51 on that close, the first option leg uses a $8.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XERS chain at a 35-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 XERS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.08 | N/A |
| Sell 2 | Call | $8.51 | N/A |
| Buy 1 | Call | $8.94 | N/A |
XERS 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.
XERS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on XERS. 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 XERS
Butterflies on XERS are pinning bets - traders use them when they expect XERS 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.
XERS thesis for this butterfly
The market-implied 1-standard-deviation range for XERS extends from approximately $6.72 on the downside to $10.30 on the upside. A XERS long call butterfly is a pinning play: it pays maximum at the middle strike if XERS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XERS IV rank near 30.64% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on XERS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, XERS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XERS-specific events.
XERS 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. XERS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XERS alongside the broader basket even when XERS-specific fundamentals are unchanged. Always rebuild the position from current XERS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on XERS?
- A butterfly on XERS is the butterfly strategy applied to XERS (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 XERS stock at $8.51 on the most recent close, the strikes shown on this page are snapped to the nearest listed XERS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are XERS 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 XERS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.40%), 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 XERS butterfly?
- The breakeven for the XERS butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XERS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on XERS?
- Butterflies on XERS are pinning bets - traders use them when they expect XERS 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 XERS implied volatility affect this butterfly?
- XERS ATM IV is at 73.40% with IV rank near 30.64%, 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.