CAPR Butterfly Strategy
CAPR (Capricor Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Capricor Therapeutics, Inc. is a clinical-stage biotechnology company, which focuses on the development of transformative cell and exosome-based therapeutics for treating Duchenne muscular dystrophy (“DMD”), a rare form of muscular dystrophy which results in muscle degeneration and premature death, and other diseases with unmet medical needs. Its product candidate consists of CAP-1002, Engineered Exosomes, CAP-2003, and Exosome-Based Vaccine. The company was founded on June 17, 1996 and is headquartered in San Diego, CA.
CAPR (Capricor Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $241.0M, a beta of 0.53 versus the broader market, a 52-week range of 2.96-40.37, average daily share volume of 2.3M, a public-listing history dating back to 2007, approximately 231 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 0.53 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.
CAPR snapshot
As of August 14, 2026, spot at $6.63, ATM IV 269.70%, IV rank 52.83%, expected move 77.32%. The butterfly on CAPR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on CAPR specifically: CAPR IV at 269.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 77.32% (roughly $5.13 on the underlying). The 35-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 $6.63 per share and to the trader's directional view on CAPR stock.
CAPR butterfly setup
The CAPR butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CAPR at $6.63 on that close, the first option leg uses a $6.30 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 35-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 | $6.30 | N/A |
| Sell 2 | Call | $6.63 | N/A |
| Buy 1 | Call | $6.96 | N/A |
CAPR 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.
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.
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 $1.50 on the downside to $11.76 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 52.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on CAPR should anchor more to the directional view and the expected-move geometry. 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 at $6.63 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CAPR chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 269.70%), 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 CAPR butterfly?
- The breakeven for the CAPR butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CAPR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 77.32%; 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 269.70% with IV rank near 52.83%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.