XERS Butterfly Strategy
XERS (Xeris Biopharma Holdings, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies for patient populations in endocrinology, neurology, and gastroenterology. The company markets Gvoke, a ready-to-use liquid glucagon for the treatment of severe hypoglycemia; and Keveyis, a therapy for the treatment of hyperkalemic, hypokalemic, and related variants of primary periodic paralysis; and Recorlev, a cortisol synthesis inhibitor proved for the treatment of endogenous hypercortisolemia in adult patients with Cushing's syndrome. It also has a pipeline of development programs to extend the marketed products into new indications and uses and bring new products using its proprietary formulation technology platforms, XeriSol and XeriJect. The company was incorporated in 2005 and is headquartered in Chicago, Illinois.
XERS (Xeris Biopharma Holdings, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.11B, a trailing P/E of 91.31, a beta of 0.92 versus the broader market, a 52-week range of 4.3-10.08, average daily share volume of 1.9M, a public-listing history dating back to 2018, approximately 394 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 0.92 places XERS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 91.31 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
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.
Current XERS snapshot
As of May 15, 2026, spot at $6.29, ATM IV 64.90%, IV rank 24.44%, expected move 18.61%. The butterfly on XERS 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 34-day expiry.
Why this butterfly structure on XERS specifically: XERS IV at 64.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a XERS butterfly, with a market-implied 1-standard-deviation move of approximately 18.61% (roughly $1.17 on the underlying). The 34-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 $6.29 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 near $6.29, the first option leg uses a $5.98 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 34-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 | $5.98 | N/A |
| Sell 2 | Call | $6.29 | N/A |
| Buy 1 | Call | $6.60 | 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 $5.12 on the downside to $7.46 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 24.44% 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 XERS at 64.90%. 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 trading near $6.29, the strikes shown on this page are snapped to the nearest listed XERS chain strike and the premiums come straight from the end-of-day 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 64.90%), 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 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 XERS market-implied 1-standard-deviation expected move is approximately 18.61%; 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 64.90% with IV rank near 24.44%, 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.