CCCC Butterfly Strategy
CCCC (C4 Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable MonoDAC degrader of protein that is in Phase 1/2 trial targeting IKZF1 and IKZF3 for multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma and mantle cell lymphoma. The company is also developing CFT8634, an orally bioavailable BiDAC degrader of BRD9, a protein target for synovial sarcoma and SMARCB1-deleted solid tumors; CFT1946, an orally bioavailable BiDAC degrader targeting V600X mutant BRAF to treat melanoma, non-small cell lung cancer (NSCLC), colorectal cancer, and other solid malignancies; CFT8919, an orally bioavailable, allosteric, and mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC; and earlier stage programs comprising RET degraders for the treatment of various cancers. C4 Therapeutics, Inc. has strategic collaborations with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; Biogen MA, Inc.; and Calico Life Sciences LLC. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.
CCCC (C4 Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $304.8M, a beta of 2.78 versus the broader market, a 52-week range of 1.21-3.95, average daily share volume of 2.9M, a public-listing history dating back to 2020, approximately 110 full-time employees. These structural characteristics shape how CCCC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.78 indicates CCCC 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 CCCC?
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 CCCC snapshot
As of May 15, 2026, spot at $3.54, ATM IV 111.40%, IV rank 28.51%, expected move 31.94%. The butterfly on CCCC 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 CCCC specifically: CCCC IV at 111.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a CCCC butterfly, with a market-implied 1-standard-deviation move of approximately 31.94% (roughly $1.13 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 CCCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CCCC should anchor to the underlying notional of $3.54 per share and to the trader's directional view on CCCC stock.
CCCC butterfly setup
The CCCC 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 CCCC near $3.54, the first option leg uses a $3.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CCCC 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 CCCC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.36 | N/A |
| Sell 2 | Call | $3.54 | N/A |
| Buy 1 | Call | $3.72 | N/A |
CCCC 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.
CCCC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CCCC. 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 CCCC
Butterflies on CCCC are pinning bets - traders use them when they expect CCCC 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.
CCCC thesis for this butterfly
The market-implied 1-standard-deviation range for CCCC extends from approximately $2.41 on the downside to $4.67 on the upside. A CCCC long call butterfly is a pinning play: it pays maximum at the middle strike if CCCC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CCCC IV rank near 28.51% 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 CCCC at 111.40%. As a Healthcare name, CCCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CCCC-specific events.
CCCC 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. CCCC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CCCC alongside the broader basket even when CCCC-specific fundamentals are unchanged. Always rebuild the position from current CCCC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CCCC?
- A butterfly on CCCC is the butterfly strategy applied to CCCC (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 CCCC stock trading near $3.54, the strikes shown on this page are snapped to the nearest listed CCCC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CCCC 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 CCCC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 111.40%), 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 CCCC butterfly?
- The breakeven for the CCCC 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 CCCC market-implied 1-standard-deviation expected move is approximately 31.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CCCC?
- Butterflies on CCCC are pinning bets - traders use them when they expect CCCC 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 CCCC implied volatility affect this butterfly?
- CCCC ATM IV is at 111.40% with IV rank near 28.51%, 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.