KFRC Butterfly Strategy
KFRC (Kforce Inc.), in the Industrials sector, (Staffing & Employment Services industry), listed on NYSE.
Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles.
KFRC (Kforce Inc.) trades in the Industrials sector, specifically Staffing & Employment Services, with a market capitalization of approximately $702.8M, a trailing P/E of 19.62, a beta of 0.88 versus the broader market, a 52-week range of 24.49-47.5, average daily share volume of 311K, a public-listing history dating back to 1995, approximately 2K full-time employees. These structural characteristics shape how KFRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places KFRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KFRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on KFRC?
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 KFRC snapshot
As of May 13, 2026, spot at $39.63, ATM IV 48.70%, IV rank 13.45%, expected move 13.96%. The butterfly on KFRC 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 36-day expiry.
Why this butterfly structure on KFRC specifically: KFRC IV at 48.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a KFRC butterfly, with a market-implied 1-standard-deviation move of approximately 13.96% (roughly $5.53 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KFRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on KFRC should anchor to the underlying notional of $39.63 per share and to the trader's directional view on KFRC stock.
KFRC butterfly setup
The KFRC 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 KFRC near $39.63, the first option leg uses a $37.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KFRC chain at a 36-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 KFRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.65 | N/A |
| Sell 2 | Call | $39.63 | N/A |
| Buy 1 | Call | $41.61 | N/A |
KFRC 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.
KFRC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KFRC. 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 KFRC
Butterflies on KFRC are pinning bets - traders use them when they expect KFRC 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.
KFRC thesis for this butterfly
The market-implied 1-standard-deviation range for KFRC extends from approximately $34.10 on the downside to $45.16 on the upside. A KFRC long call butterfly is a pinning play: it pays maximum at the middle strike if KFRC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KFRC IV rank near 13.45% 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 KFRC at 48.70%. As a Industrials name, KFRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KFRC-specific events.
KFRC 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. KFRC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KFRC alongside the broader basket even when KFRC-specific fundamentals are unchanged. Always rebuild the position from current KFRC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KFRC?
- A butterfly on KFRC is the butterfly strategy applied to KFRC (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 KFRC stock trading near $39.63, the strikes shown on this page are snapped to the nearest listed KFRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KFRC 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 KFRC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 48.70%), 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 KFRC butterfly?
- The breakeven for the KFRC 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 KFRC market-implied 1-standard-deviation expected move is approximately 13.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KFRC?
- Butterflies on KFRC are pinning bets - traders use them when they expect KFRC 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 KFRC implied volatility affect this butterfly?
- KFRC ATM IV is at 48.70% with IV rank near 13.45%, 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.