KURA Butterfly Strategy
KURA (Kura Oncology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. The company’s first commercial product, KOMZIFTI (ziftomenib), a potent, selective, reversible and oral small molecule menin inhibitor; Darlifarnib, a Phase 1 first-in-human FIT-001 trial which includes multiple cohorts to evaluate darlifarnib in combination with other targeted therapies in large solid tumor indications; and KO-7246, a next-generation menin inhibitor, for use in diabetes and cardiometabolic disorders and additional next-generation menin inhibitors for use in combination with other therapies in solid tumors. The company is headquartered in San Diego, California.
KURA (Kura Oncology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $882.4M, a beta of 0.38 versus the broader market, a 52-week range of 6.35-12.49, average daily share volume of 1.6M, a public-listing history dating back to 2015, approximately 260 full-time employees. These structural characteristics shape how KURA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates KURA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on KURA?
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.
KURA snapshot
As of August 14, 2026, spot at $11.00, ATM IV 77.80%, IV rank 12.79%, expected move 22.30%. The butterfly on KURA 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 KURA specifically: KURA IV at 77.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a KURA butterfly, with a market-implied 1-standard-deviation move of approximately 22.30% (roughly $2.45 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 KURA expiries trade a higher absolute premium for lower per-day decay. Position sizing on KURA should anchor to the underlying notional of $11.00 per share and to the trader's directional view on KURA stock.
KURA butterfly setup
The KURA 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 KURA at $11.00 on that close, the first option leg uses a $10.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KURA 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 KURA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.45 | N/A |
| Sell 2 | Call | $11.00 | N/A |
| Buy 1 | Call | $11.55 | N/A |
KURA 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.
KURA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KURA. 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 KURA
Butterflies on KURA are pinning bets - traders use them when they expect KURA 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.
KURA thesis for this butterfly
The market-implied 1-standard-deviation range for KURA extends from approximately $8.55 on the downside to $13.45 on the upside. A KURA long call butterfly is a pinning play: it pays maximum at the middle strike if KURA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KURA IV rank near 12.79% 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 KURA at 77.80%. As a Healthcare name, KURA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KURA-specific events.
KURA 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. KURA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KURA alongside the broader basket even when KURA-specific fundamentals are unchanged. Always rebuild the position from current KURA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KURA?
- A butterfly on KURA is the butterfly strategy applied to KURA (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 KURA stock at $11.00 on the most recent close, the strikes shown on this page are snapped to the nearest listed KURA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KURA 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 KURA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 77.80%), 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 KURA butterfly?
- The breakeven for the KURA 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 KURA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KURA?
- Butterflies on KURA are pinning bets - traders use them when they expect KURA 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 KURA implied volatility affect this butterfly?
- KURA ATM IV is at 77.80% with IV rank near 12.79%, 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.