XGN Butterfly Strategy
XGN (Exagen Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Exagen Inc. develops and commercializes various testing products based on its cell-bound complement activation products technology under the AVISE brand in the United States. It enables rheumatologists to care for patients through the diagnosis, prognosis, and monitoring of autoimmune and autoimmune-related diseases, including systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA). Its lead testing product is AVISE CTD that enables differential diagnosis for patients presenting with symptoms indicative of various connective tissue diseases (CTDs) and other related diseases with overlapping symptoms. The company offers AVISE Lupus that measures activation of the complement system by quantifying the level of B-cell C4d and erythrocyte bound C4d in the patient's blood; and AVISE APS, which consists of a panel of autoantibody tests that aids in the diagnosis and management of APS. In addition, it provides AVISE SLE Prognostic, a panel of autoantibodies for assessing the potential for complications affecting the kidney, brain, and cardiovascular system; AVISE Vasculitis AAV, which utilizes a testing panel of individual analytes to provide physicians with results in the assessment and monitoring of anti-neutrophil cytoplasmic antibody and associated vasculitis; AVISE Anti-CarP test, which identifies RA patients with severe disease; and AVISE PC4d to measure platelet- bound C4d. Further, the company offers AVISE SLE Monitor, a biomarker blood test; AVISE MTX, a patented and validated blood test; and AVISE HCQ, a blood test to monitor levels of hydroxychloroquine.
XGN (Exagen Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $83.8M, a beta of 1.81 versus the broader market, a 52-week range of 2.59-12.23, average daily share volume of 374K, a public-listing history dating back to 2019, approximately 209 full-time employees. These structural characteristics shape how XGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.81 indicates XGN 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 XGN?
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 XGN snapshot
As of May 15, 2026, spot at $3.65, ATM IV 24.40%, IV rank 1.46%, expected move 7.00%. The butterfly on XGN 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 XGN specifically: XGN IV at 24.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a XGN butterfly, with a market-implied 1-standard-deviation move of approximately 7.00% (roughly $0.26 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 XGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on XGN should anchor to the underlying notional of $3.65 per share and to the trader's directional view on XGN stock.
XGN butterfly setup
The XGN 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 XGN near $3.65, the first option leg uses a $3.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XGN 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 XGN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.47 | N/A |
| Sell 2 | Call | $3.65 | N/A |
| Buy 1 | Call | $3.83 | N/A |
XGN 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.
XGN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on XGN. 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 XGN
Butterflies on XGN are pinning bets - traders use them when they expect XGN 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.
XGN thesis for this butterfly
The market-implied 1-standard-deviation range for XGN extends from approximately $3.39 on the downside to $3.91 on the upside. A XGN long call butterfly is a pinning play: it pays maximum at the middle strike if XGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XGN IV rank near 1.46% 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 XGN at 24.40%. As a Healthcare name, XGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XGN-specific events.
XGN 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. XGN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XGN alongside the broader basket even when XGN-specific fundamentals are unchanged. Always rebuild the position from current XGN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on XGN?
- A butterfly on XGN is the butterfly strategy applied to XGN (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 XGN stock trading near $3.65, the strikes shown on this page are snapped to the nearest listed XGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are XGN 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 XGN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.40%), 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 XGN butterfly?
- The breakeven for the XGN 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 XGN market-implied 1-standard-deviation expected move is approximately 7.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on XGN?
- Butterflies on XGN are pinning bets - traders use them when they expect XGN 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 XGN implied volatility affect this butterfly?
- XGN ATM IV is at 24.40% with IV rank near 1.46%, 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.