CYPH Butterfly Strategy
CYPH (Cypherpunk Technologies Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Cypherpunk Technologies Inc. is a biopharmaceutical company dedicated to the acquisition and development of antibody treatments for cancer. The firm's flagship investigational drug, DKN-01, is a monoclonal antibody designed to suppress Dickkopf-related protein 1 and is currently progressing through multiple clinical trials for various esophagogastric, gynecologic, and colorectal cancers. Additionally, the company is advancing FL-501, another monoclonal antibody that targets the GDF-15 protein, which is presently in preclinical development. Cypherpunk has established an agreement with Adimab, LLC and BeiGene, Ltd., granting it options and licenses to advance and market DKN-01 across Asia (excluding Japan), Australia, and New Zealand. Founded in 2011, the company operates from Cambridge, Massachusetts, and was formerly known as Leap Therapeutics, Inc. until its renaming in November 2025.
CYPH (Cypherpunk Technologies Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $35.0M, a beta of -0.02 versus the broader market, a 52-week range of 0.232-3.7, average daily share volume of 4.8M, a public-listing history dating back to 2017, approximately 52 full-time employees. These structural characteristics shape how CYPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.02 indicates CYPH 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 CYPH?
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 CYPH snapshot
As of June 30, 2026, spot at $0.62, ATM IV 339.60%, IV rank 72.25%, expected move 97.36%. The butterfly on CYPH 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 17-day expiry.
Why this butterfly structure on CYPH specifically: CYPH IV at 339.60% is rich versus its 1-year range, which makes a premium-buying CYPH butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 97.36% (roughly $0.60 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CYPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on CYPH should anchor to the underlying notional of $0.62 per share and to the trader's directional view on CYPH stock.
CYPH butterfly setup
The CYPH 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 CYPH near $0.62, the first option leg uses a $0.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CYPH chain at a 17-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 CYPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.59 | N/A |
| Sell 2 | Call | $0.62 | N/A |
| Buy 1 | Call | $0.65 | N/A |
CYPH 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.
CYPH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CYPH. 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 CYPH
Butterflies on CYPH are pinning bets - traders use them when they expect CYPH 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.
CYPH thesis for this butterfly
The market-implied 1-standard-deviation range for CYPH extends from approximately $0.02 on the downside to $1.22 on the upside. A CYPH long call butterfly is a pinning play: it pays maximum at the middle strike if CYPH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CYPH IV rank near 72.25% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CYPH at 339.60%. As a Healthcare name, CYPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CYPH-specific events.
CYPH 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. CYPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CYPH alongside the broader basket even when CYPH-specific fundamentals are unchanged. Always rebuild the position from current CYPH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CYPH?
- A butterfly on CYPH is the butterfly strategy applied to CYPH (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 CYPH stock trading near $0.62, the strikes shown on this page are snapped to the nearest listed CYPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CYPH 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 CYPH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 339.60%), 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 CYPH butterfly?
- The breakeven for the CYPH 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 CYPH market-implied 1-standard-deviation expected move is approximately 97.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CYPH?
- Butterflies on CYPH are pinning bets - traders use them when they expect CYPH 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 CYPH implied volatility affect this butterfly?
- CYPH ATM IV is at 339.60% with IV rank near 72.25%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.