KMDA Butterfly Strategy
KMDA (Kamada Ltd.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Kamada Ltd. is a biopharmaceutical firm focused on developing, manufacturing, and distributing protein therapeutics derived from human plasma. The company operates through two core business areas: its proprietary product segment and its distribution division. Its own manufactured portfolio includes KAMRAB/KEDRAB for rabies prevention, CYTOGAM to prevent cytomegalovirus disease in transplant recipients, WINRHO SDF for immune thrombocytopenic purpura and Rhesus (Rh) isoimmunization, HEPAGAM B for hepatitis B recurrence prevention following liver transplants and for post-exposure prophylaxis, VARIZIG for post-exposure chickenpox prophylaxis, and GLASSIA for intravenous alpha-1 antitrypsin deficiency (AATD). Kamada also produces KamRho (D) for the prophylaxis of hemolytic disease of newborns and immune thrombocytopenic purpura, along with a specific antiserum for Vipera palaestinae and Echis coloratus snake bites. Additionally, the company distributes a wide array of third-party pharmaceutical products, encompassing treatments like BRAMITOB for chronic pulmonary infections, FOSTER for asthma, PROVOCHOLINE for diagnosing bronchial airway hyperactivity, and specialized therapies such as IVIG for immunodeficiency, VARITECT for chickenpox and zoster herpes, and various factors for hemophilia A and B, among numerous others for conditions like hepatitis B, cytomegalovirus, angioedema, Japanese encephalitis, and prostate cancer. Kamada markets its offerings in the United States through strategic partners and internationally via a network of distributors.
KMDA (Kamada Ltd.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $437.3M, a trailing P/E of 19.72, a beta of 0.15 versus the broader market, a 52-week range of 6.5-9.35, average daily share volume of 52K, a public-listing history dating back to 2013, approximately 462 full-time employees. These structural characteristics shape how KMDA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.15 indicates KMDA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KMDA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on KMDA?
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.
KMDA snapshot
As of August 14, 2026, spot at $7.55, ATM IV 167.30%, IV rank 33.73%, expected move 47.96%. The butterfly on KMDA below is built from the 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 KMDA specifically: KMDA IV at 167.30% 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 47.96% (roughly $3.62 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 KMDA expiries trade a higher absolute premium for lower per-day decay. Position sizing on KMDA should anchor to the underlying notional of $7.55 per share and to the trader's directional view on KMDA stock.
KMDA butterfly setup
The KMDA 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 KMDA at $7.55 on that close, the first option leg uses a $7.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KMDA 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 KMDA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.17 | N/A |
| Sell 2 | Call | $7.55 | N/A |
| Buy 1 | Call | $7.93 | N/A |
KMDA 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.
KMDA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KMDA. 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 KMDA
Butterflies on KMDA are pinning bets - traders use them when they expect KMDA 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.
KMDA thesis for this butterfly
The market-implied 1-standard-deviation range for KMDA extends from approximately $3.93 on the downside to $11.17 on the upside. A KMDA long call butterfly is a pinning play: it pays maximum at the middle strike if KMDA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KMDA IV rank near 33.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on KMDA should anchor more to the directional view and the expected-move geometry. As a Healthcare name, KMDA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KMDA-specific events.
KMDA 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. KMDA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KMDA alongside the broader basket even when KMDA-specific fundamentals are unchanged. Always rebuild the position from current KMDA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KMDA?
- A butterfly on KMDA is the butterfly strategy applied to KMDA (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 KMDA stock at $7.55 on the most recent close, the strikes shown on this page are snapped to the nearest listed KMDA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KMDA 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 KMDA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 167.30%), 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 KMDA butterfly?
- The breakeven for the KMDA butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 KMDA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KMDA?
- Butterflies on KMDA are pinning bets - traders use them when they expect KMDA 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 KMDA implied volatility affect this butterfly?
- KMDA ATM IV is at 167.30% with IV rank near 33.73%, 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.