KFY Butterfly Strategy
KFY (Korn Ferry), in the Industrials sector, (Staffing & Employment Services industry), listed on NYSE.
Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services. In addition, the company provides RPO, business project, professional search, and outsource recruiting solutions. Further, the company offers tech-enabled solutions that identify structures, roles, capabilities, and behaviors to drive businesses.
KFY (Korn Ferry) trades in the Industrials sector, specifically Staffing & Employment Services, with a market capitalization of approximately $3.35B, a trailing P/E of 12.39, a beta of 1.22 versus the broader market, a 52-week range of 58.95-78.5, average daily share volume of 550K, a public-listing history dating back to 1999, approximately 9K full-time employees. These structural characteristics shape how KFY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places KFY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KFY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on KFY?
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 KFY snapshot
As of May 13, 2026, spot at $64.72, ATM IV 37.80%, IV rank 31.07%, expected move 10.84%. The butterfly on KFY 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 KFY specifically: KFY IV at 37.80% 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 10.84% (roughly $7.01 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 KFY expiries trade a higher absolute premium for lower per-day decay. Position sizing on KFY should anchor to the underlying notional of $64.72 per share and to the trader's directional view on KFY stock.
KFY butterfly setup
The KFY 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 KFY near $64.72, the first option leg uses a $61.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KFY 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 KFY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $61.48 | N/A |
| Sell 2 | Call | $64.72 | N/A |
| Buy 1 | Call | $67.96 | N/A |
KFY 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.
KFY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KFY. 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 KFY
Butterflies on KFY are pinning bets - traders use them when they expect KFY 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.
KFY thesis for this butterfly
The market-implied 1-standard-deviation range for KFY extends from approximately $57.71 on the downside to $71.73 on the upside. A KFY long call butterfly is a pinning play: it pays maximum at the middle strike if KFY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KFY IV rank near 31.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on KFY should anchor more to the directional view and the expected-move geometry. As a Industrials name, KFY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KFY-specific events.
KFY 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. KFY positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KFY alongside the broader basket even when KFY-specific fundamentals are unchanged. Always rebuild the position from current KFY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KFY?
- A butterfly on KFY is the butterfly strategy applied to KFY (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 KFY stock trading near $64.72, the strikes shown on this page are snapped to the nearest listed KFY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KFY 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 KFY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.80%), 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 KFY butterfly?
- The breakeven for the KFY 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 KFY market-implied 1-standard-deviation expected move is approximately 10.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KFY?
- Butterflies on KFY are pinning bets - traders use them when they expect KFY 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 KFY implied volatility affect this butterfly?
- KFY ATM IV is at 37.80% with IV rank near 31.07%, 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.