KPTI Butterfly Strategy
KPTI (Karyopharm Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Karyopharm Therapeutics Inc. is a pharmaceutical company that has already brought products to market, focusing on identifying, advancing, and selling medications designed to disrupt nuclear export pathways. These drugs are primarily aimed at treating cancer and various other illnesses. The company's strategy involves researching, creating, and marketing innovative Selective Inhibitor of Nuclear Export (SINE) compounds, which operate by attaching to and deactivating the nuclear export protein XPO1. Their leading therapeutic, XPOVIO, holds approvals for several critical applications in adult patients: it is prescribed in combination with bortezomib and dexamethasone for multiple myeloma; alongside dexamethasone for those with heavily pretreated multiple myeloma; and as a standalone treatment for relapsed or refractory diffuse large B-cell lymphoma. Karyopharm has also established a licensing partnership with the Menarini Group, granting them rights to develop and market NEXPOVIO for human oncology indications across Europe (including the United Kingdom), Latin America, and other global regions. Furthermore, the company's oral SINE compounds are specifically engineered to promote the accumulation of various tumor suppressor and growth-regulating proteins within the cell nucleus.
KPTI (Karyopharm Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $231.4M, a beta of 0.82 versus the broader market, a 52-week range of 3.65-10.99, average daily share volume of 499K, a public-listing history dating back to 2013, approximately 279 full-time employees. These structural characteristics shape how KPTI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places KPTI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on KPTI?
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 KPTI snapshot
As of June 30, 2026, spot at $9.75, ATM IV 250.10%, IV rank 37.86%, expected move 71.70%. The butterfly on KPTI 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 KPTI specifically: KPTI IV at 250.10% 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 71.70% (roughly $6.99 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 KPTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on KPTI should anchor to the underlying notional of $9.75 per share and to the trader's directional view on KPTI stock.
KPTI butterfly setup
The KPTI 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 KPTI near $9.75, the first option leg uses a $9.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KPTI 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 KPTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.26 | N/A |
| Sell 2 | Call | $9.75 | N/A |
| Buy 1 | Call | $10.24 | N/A |
KPTI 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.
KPTI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KPTI. 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 KPTI
Butterflies on KPTI are pinning bets - traders use them when they expect KPTI 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.
KPTI thesis for this butterfly
The market-implied 1-standard-deviation range for KPTI extends from approximately $2.76 on the downside to $16.74 on the upside. A KPTI long call butterfly is a pinning play: it pays maximum at the middle strike if KPTI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KPTI IV rank near 37.86% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on KPTI should anchor more to the directional view and the expected-move geometry. As a Healthcare name, KPTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KPTI-specific events.
KPTI 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. KPTI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KPTI alongside the broader basket even when KPTI-specific fundamentals are unchanged. Always rebuild the position from current KPTI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KPTI?
- A butterfly on KPTI is the butterfly strategy applied to KPTI (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 KPTI stock trading near $9.75, the strikes shown on this page are snapped to the nearest listed KPTI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KPTI 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 KPTI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 250.10%), 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 KPTI butterfly?
- The breakeven for the KPTI 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 KPTI market-implied 1-standard-deviation expected move is approximately 71.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KPTI?
- Butterflies on KPTI are pinning bets - traders use them when they expect KPTI 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 KPTI implied volatility affect this butterfly?
- KPTI ATM IV is at 250.10% with IV rank near 37.86%, 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.