XNCR Butterfly Strategy
XNCR (Xencor, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Xencor, Inc., a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases. The company provides Sotrovimab that targets the SARS-CoV-2 virus; Ultomiris for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. It develops Plamotamab, a tumor-targeted antibody, which is in Phase I clinical trial to treat non-Hodgkin lymphoma; Vudalimab, a bispecific antibody, which is in Phase II clinical trial to treat metastatic castration-resistant prostate cancer and other solid tumor types; and Tidutamab that is in Phase II clinical trial to treat neuroendocrine tumors. The company is also developing XmAb306, which is in Phase I clinical trial to treat solid tumors; XmAb104 and XmAb841, which are in Phase I clinical trial to treat patients with selected solid tumors; XmAb564 that is in Phase I clinical trial to treat autoimmune diseases; AMG 509, which is in Phase I clinical trial to treat prostate cancer; XmAb819 for patients with renal cell carcinoma; and Novartis XmAb. It develops VIR-3434, which is in Phase II clinical trial for patients with hepatitis B virus infection; VIR-2482 that is in Phase 1/2 clinical trial to trat influenza A; VIR-7832, which is in Phase 1b/2a trial to treat mild-to-moderate COVID-19; and BMS-986414 + BMS-986413 is in Phase 2/3 NIH ACTIV-2 trial in treating COVID-19. The company develops AIMab7195 to reduce blood serum levels of IgE that mediates allergic responses and allergic disease; Obexelimab to treat autoimmune disease; and Xpro1595 to treat patients with Alzheimer's disease, mild cognitive impairment, and depression.
XNCR (Xencor, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $917.9M, a beta of 0.93 versus the broader market, a 52-week range of 6.92-18.69, average daily share volume of 847K, a public-listing history dating back to 2013, approximately 250 full-time employees. These structural characteristics shape how XNCR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places XNCR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on XNCR?
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 XNCR snapshot
As of May 15, 2026, spot at $11.35, ATM IV 73.30%, IV rank 10.05%, expected move 21.01%. The butterfly on XNCR 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 XNCR specifically: XNCR IV at 73.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a XNCR butterfly, with a market-implied 1-standard-deviation move of approximately 21.01% (roughly $2.39 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 XNCR expiries trade a higher absolute premium for lower per-day decay. Position sizing on XNCR should anchor to the underlying notional of $11.35 per share and to the trader's directional view on XNCR stock.
XNCR butterfly setup
The XNCR 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 XNCR near $11.35, the first option leg uses a $10.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XNCR 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 XNCR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.78 | N/A |
| Sell 2 | Call | $11.35 | N/A |
| Buy 1 | Call | $11.92 | N/A |
XNCR 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.
XNCR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on XNCR. 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 XNCR
Butterflies on XNCR are pinning bets - traders use them when they expect XNCR 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.
XNCR thesis for this butterfly
The market-implied 1-standard-deviation range for XNCR extends from approximately $8.96 on the downside to $13.74 on the upside. A XNCR long call butterfly is a pinning play: it pays maximum at the middle strike if XNCR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XNCR IV rank near 10.05% 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 XNCR at 73.30%. As a Healthcare name, XNCR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XNCR-specific events.
XNCR 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. XNCR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XNCR alongside the broader basket even when XNCR-specific fundamentals are unchanged. Always rebuild the position from current XNCR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on XNCR?
- A butterfly on XNCR is the butterfly strategy applied to XNCR (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 XNCR stock trading near $11.35, the strikes shown on this page are snapped to the nearest listed XNCR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are XNCR 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 XNCR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.30%), 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 XNCR butterfly?
- The breakeven for the XNCR 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 XNCR market-implied 1-standard-deviation expected move is approximately 21.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on XNCR?
- Butterflies on XNCR are pinning bets - traders use them when they expect XNCR 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 XNCR implied volatility affect this butterfly?
- XNCR ATM IV is at 73.30% with IV rank near 10.05%, 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.