How are CAPR 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 CAPR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 83.00%), the computed maximum profit is $173.74 per contract and the computed maximum loss is -$12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CAPR butterfly?

The breakeven for the CAPR butterfly priced on this page is roughly $27.13 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 CAPR market-implied 1-standard-deviation expected move is approximately 23.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CAPR implied volatility affect this butterfly?

CAPR ATM IV is at 83.00% with IV rank near 5.84%, 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.

CAPR Butterfly Strategy

CAPR (Capricor Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Capricor Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the development of transformative cell and exosome-based therapeutics for the treatment and prevention of spectrum of diseases and disorders. Its lead candidate, CAP-1002, an allogeneic cardiac-derived cell therapy, which has completed phase III clinical trial for the treatment of patients with late-stage Duchenne muscular dystrophy (DMD); and CAP-1002, which is in Phase II clinical trial for the treatment of cytokine storm associated with SARS-CoV-2. The company also develops CAP-2003 that is in pre-clinical development for the treatment of trauma related injuries and conditions; and two vaccine candidates, which are in development stage for the potential prevention of COVID-19. It collaborates with Lonza Houston, Inc. for the clinical manufacturing of CAP-1002, its cell therapy candidate for the treatment of DMD and other indications. The company was founded in 2005 and is headquartered in San Diego, California.

CAPR (Capricor Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.39B, a beta of 0.48 versus the broader market, a 52-week range of 4.3-40.37, average daily share volume of 1.3M, a public-listing history dating back to 2007, approximately 160 full-time employees. These structural characteristics shape how CAPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.48 indicates CAPR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on CAPR?

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 CAPR snapshot

As of May 15, 2026, spot at $28.70, ATM IV 83.00%, IV rank 5.84%, expected move 23.80%. The butterfly on CAPR 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 CAPR specifically: CAPR IV at 83.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a CAPR butterfly, with a market-implied 1-standard-deviation move of approximately 23.80% (roughly $6.83 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 CAPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAPR should anchor to the underlying notional of $28.70 per share and to the trader's directional view on CAPR stock.

CAPR butterfly setup

The CAPR 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 CAPR near $28.70, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAPR 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 CAPR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$27.00	$3.50
Sell 2	Call	$29.00	$2.93
Buy 1	Call	$30.00	$2.48

CAPR butterfly risk and reward

Net Premium / Debit: -$12.50
Max Profit (per contract): $173.74
Max Loss (per contract): -$12.50
Breakeven(s): $27.13
Risk / Reward Ratio: 13.899

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.

CAPR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CAPR. 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	-100.0%	-$12.50
$6.35	-77.9%	-$12.50
$12.70	-55.8%	-$12.50
$19.04	-33.6%	-$12.50
$25.39	-11.5%	-$12.50
$31.73	+10.6%	+$87.50
$38.08	+32.7%	+$87.50
$44.42	+54.8%	+$87.50
$50.77	+76.9%	+$87.50
$57.11	+99.0%	+$87.50

When traders use butterfly on CAPR

Butterflies on CAPR are pinning bets - traders use them when they expect CAPR 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.

CAPR thesis for this butterfly

The market-implied 1-standard-deviation range for CAPR extends from approximately $21.87 on the downside to $35.53 on the upside. A CAPR long call butterfly is a pinning play: it pays maximum at the middle strike if CAPR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CAPR IV rank near 5.84% 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 CAPR at 83.00%. As a Healthcare name, CAPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAPR-specific events.

CAPR 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. CAPR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CAPR alongside the broader basket even when CAPR-specific fundamentals are unchanged. Always rebuild the position from current CAPR chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on CAPR?: A butterfly on CAPR is the butterfly strategy applied to CAPR (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 CAPR stock trading near $28.70, the strikes shown on this page are snapped to the nearest listed CAPR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CAPR 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 CAPR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 83.00%), the computed maximum profit is $173.74 per contract and the computed maximum loss is -$12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CAPR butterfly?: The breakeven for the CAPR butterfly priced on this page is roughly $27.13 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 CAPR market-implied 1-standard-deviation expected move is approximately 23.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CAPR?: Butterflies on CAPR are pinning bets - traders use them when they expect CAPR 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 CAPR implied volatility affect this butterfly?: CAPR ATM IV is at 83.00% with IV rank near 5.84%, 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.