How are KNSA 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 KNSA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.50%), the computed maximum profit is $232.50 per contract and the computed maximum loss is -$267.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KNSA butterfly?

The breakeven for the KNSA butterfly priced on this page is roughly $77.33 at expiration, derived from the August 14, 2026 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 KNSA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KNSA implied volatility affect this butterfly?

KNSA ATM IV is at 50.50% with IV rank near 28.78%, 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.

KNSA Butterfly Strategy

KNSA (Kiniksa Pharmaceuticals International, plc), in the Healthcare sector, (Medical - Pharmaceuticals industry), listed on NASDAQ.

Kiniksa Pharmaceuticals International, plc, a biopharmaceutical company, develops and commercializes medical therapies in the United States, the United Kingdom, and internationally. The company offers ARCALYST, an interleukin-1alpha and 1beta cytokine trap for the treatment of recurrent pericarditis, a chronic autoinflammatory cardiovascular disease and cardiac sarcoidosis. It also develops KPL-387, an investigational and fully human immunoglobulin G2 monoclonal antibody, which is Phase 2/3 clinical trial for the treatment of recurrent pericarditis; and KPL-116, a Fc-modified immunoglobulin G2 monoclonal antibody, which is in pre-clinical stage. The company was formerly known as Kiniksa Pharmaceuticals, Ltd. and changed its name to Kiniksa Pharmaceuticals International, plc in June 2024. Kiniksa Pharmaceuticals International, plc was incorporated in 2015 and is based in London, the United Kingdom.

KNSA (Kiniksa Pharmaceuticals International, plc) trades in the Healthcare sector, specifically Medical - Pharmaceuticals, with a market capitalization of approximately $5.96B, a trailing P/E of 75.17, a beta of 0.09 versus the broader market, a 52-week range of 32.685-82.94, average daily share volume of 779K, a public-listing history dating back to 2018, approximately 366 full-time employees. These structural characteristics shape how KNSA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.09 indicates KNSA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 75.17 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a butterfly on KNSA?

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.

KNSA snapshot

As of August 14, 2026, spot at $76.72, ATM IV 50.50%, IV rank 28.78%, expected move 14.48%. The butterfly on KNSA below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.

Why this butterfly structure on KNSA specifically: KNSA IV at 50.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a KNSA butterfly, with a market-implied 1-standard-deviation move of approximately 14.48% (roughly $11.11 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KNSA expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNSA should anchor to the underlying notional of $76.72 per share and to the trader's directional view on KNSA stock.

KNSA butterfly setup

The KNSA butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With KNSA at $76.72 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNSA chain at a 63-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 KNSA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$6.35
Sell 2	Call	$75.00	$6.35
Buy 1	Call	$80.00	$4.03

KNSA butterfly risk and reward

Net Premium / Debit: +$232.50
Max Profit (per contract): $232.50
Max Loss (per contract): -$267.50
Breakeven(s): $77.33
Risk / Reward Ratio: 0.869

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.

KNSA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on KNSA. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$232.50
$16.97	-77.9%	+$232.50
$33.93	-55.8%	+$232.50
$50.90	-33.7%	+$232.50
$67.86	-11.6%	+$232.50
$84.82	+10.6%	-$267.50
$101.78	+32.7%	-$267.50
$118.74	+54.8%	-$267.50
$135.71	+76.9%	-$267.50
$152.67	+99.0%	-$267.50

When traders use butterfly on KNSA

Butterflies on KNSA are pinning bets - traders use them when they expect KNSA 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.

KNSA thesis for this butterfly

The market-implied 1-standard-deviation range for KNSA extends from approximately $65.61 on the downside to $87.83 on the upside. A KNSA long call butterfly is a pinning play: it pays maximum at the middle strike if KNSA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KNSA IV rank near 28.78% 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 KNSA at 50.50%. As a Healthcare name, KNSA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNSA-specific events.

KNSA 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. KNSA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNSA alongside the broader basket even when KNSA-specific fundamentals are unchanged. Always rebuild the position from current KNSA chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on KNSA?: A butterfly on KNSA is the butterfly strategy applied to KNSA (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 KNSA stock at $76.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KNSA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are KNSA 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 KNSA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.50%), the computed maximum profit is $232.50 per contract and the computed maximum loss is -$267.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KNSA butterfly?: The breakeven for the KNSA butterfly priced on this page is roughly $77.33 at expiration, derived from the August 14, 2026 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 KNSA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on KNSA?: Butterflies on KNSA are pinning bets - traders use them when they expect KNSA 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 KNSA implied volatility affect this butterfly?: KNSA ATM IV is at 50.50% with IV rank near 28.78%, 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.