AUPH Butterfly Strategy
AUPH (Aurinia Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Aurinia Pharmaceuticals Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies to treat various diseases with unmet medical need in the United States and internationally. The company offers LUPKYNIS for the treatment of adult patients with active lupus nephritis. It has a collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. The company is headquartered in Victoria, Canada.
AUPH (Aurinia Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.06B, a trailing P/E of 7.12, a beta of 1.45 versus the broader market, a 52-week range of 7.285-16.88, average daily share volume of 1.2M, a public-listing history dating back to 2014, approximately 130 full-time employees. These structural characteristics shape how AUPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates AUPH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.12 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on AUPH?
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 AUPH snapshot
As of May 15, 2026, spot at $15.28, ATM IV 43.80%, IV rank 14.38%, expected move 12.56%. The butterfly on AUPH 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 AUPH specifically: AUPH IV at 43.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a AUPH butterfly, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $1.92 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 AUPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUPH should anchor to the underlying notional of $15.28 per share and to the trader's directional view on AUPH stock.
AUPH butterfly setup
The AUPH 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 AUPH near $15.28, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUPH 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 AUPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.00 | $1.28 |
| Sell 2 | Call | $15.00 | $1.28 |
| Buy 1 | Call | $16.00 | $1.13 |
AUPH butterfly risk and reward
- Net Premium / Debit
- +$15.00
- Max Profit (per contract)
- $15.00
- Max Loss (per contract)
- -$85.00
- Breakeven(s)
- $15.15
- Risk / Reward Ratio
- 0.176
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.
AUPH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AUPH. 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 | -99.9% | +$15.00 |
| $3.39 | -77.8% | +$15.00 |
| $6.76 | -55.7% | +$15.00 |
| $10.14 | -33.6% | +$15.00 |
| $13.52 | -11.5% | +$15.00 |
| $16.90 | +10.6% | -$85.00 |
| $20.27 | +32.7% | -$85.00 |
| $23.65 | +54.8% | -$85.00 |
| $27.03 | +76.9% | -$85.00 |
| $30.41 | +99.0% | -$85.00 |
When traders use butterfly on AUPH
Butterflies on AUPH are pinning bets - traders use them when they expect AUPH 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.
AUPH thesis for this butterfly
The market-implied 1-standard-deviation range for AUPH extends from approximately $13.36 on the downside to $17.20 on the upside. A AUPH long call butterfly is a pinning play: it pays maximum at the middle strike if AUPH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AUPH IV rank near 14.38% 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 AUPH at 43.80%. As a Healthcare name, AUPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUPH-specific events.
AUPH 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. AUPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUPH alongside the broader basket even when AUPH-specific fundamentals are unchanged. Always rebuild the position from current AUPH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AUPH?
- A butterfly on AUPH is the butterfly strategy applied to AUPH (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 AUPH stock trading near $15.28, the strikes shown on this page are snapped to the nearest listed AUPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AUPH 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 AUPH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $15.00 per contract and the computed maximum loss is -$85.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AUPH butterfly?
- The breakeven for the AUPH butterfly priced on this page is roughly $15.15 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 AUPH market-implied 1-standard-deviation expected move is approximately 12.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AUPH?
- Butterflies on AUPH are pinning bets - traders use them when they expect AUPH 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 AUPH implied volatility affect this butterfly?
- AUPH ATM IV is at 43.80% with IV rank near 14.38%, 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.