KYMR Butterfly Strategy
KYMR (Kymera Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Kymera Therapeutics, Inc. is a biopharmaceutical company dedicated to discovering and developing pioneering small molecule therapeutics. These treatments operate by harnessing the body's inherent protein degradation system to selectively eliminate disease-causing proteins. The company's pipeline features several programs, including the IRAK4 program, currently in Phase I clinical trials, which targets various immunology-inflammation disorders such as hidradenitis suppurativa, atopic dermatitis, macrophage activation syndrome, generalized pustular psoriasis, and rheumatoid arthritis. Additionally, Kymera is advancing its IRAKIMiD program, designed to address MYD88-mutated diffuse large B cell lymphoma. Other key programs include the STAT3 program, focused on hematological malignancies, solid tumors, autoimmune diseases, and fibrosis, as well as the MDM2 program, which is also aimed at hematological malignancies and solid tumors. The company was founded in 2015 and maintains its headquarters in Watertown, Massachusetts.
KYMR (Kymera Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $8.89B, a beta of 2.03 versus the broader market, a 52-week range of 36.65-130.05, average daily share volume of 686K, a public-listing history dating back to 2020, approximately 208 full-time employees. These structural characteristics shape how KYMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.03 indicates KYMR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on KYMR?
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 KYMR snapshot
As of June 30, 2026, spot at $114.79, ATM IV 51.00%, IV rank 6.82%, expected move 14.62%. The butterfly on KYMR 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 KYMR specifically: KYMR IV at 51.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a KYMR butterfly, with a market-implied 1-standard-deviation move of approximately 14.62% (roughly $16.78 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 KYMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on KYMR should anchor to the underlying notional of $114.79 per share and to the trader's directional view on KYMR stock.
KYMR butterfly setup
The KYMR 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 KYMR near $114.79, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KYMR 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 KYMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $110.00 | $8.85 |
| Sell 2 | Call | $115.00 | $5.80 |
| Buy 1 | Call | $120.00 | $3.05 |
KYMR butterfly risk and reward
- Net Premium / Debit
- -$30.00
- Max Profit (per contract)
- $432.82
- Max Loss (per contract)
- -$30.00
- Breakeven(s)
- $110.06, $119.70
- Risk / Reward Ratio
- 14.427
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.
KYMR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KYMR. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$30.00 |
| $25.39 | -77.9% | -$30.00 |
| $50.77 | -55.8% | -$30.00 |
| $76.15 | -33.7% | -$30.00 |
| $101.53 | -11.6% | -$30.00 |
| $126.91 | +10.6% | -$30.00 |
| $152.29 | +32.7% | -$30.00 |
| $177.67 | +54.8% | -$30.00 |
| $203.05 | +76.9% | -$30.00 |
| $228.43 | +99.0% | -$30.00 |
When traders use butterfly on KYMR
Butterflies on KYMR are pinning bets - traders use them when they expect KYMR 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.
KYMR thesis for this butterfly
The market-implied 1-standard-deviation range for KYMR extends from approximately $98.01 on the downside to $131.57 on the upside. A KYMR long call butterfly is a pinning play: it pays maximum at the middle strike if KYMR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KYMR IV rank near 6.82% 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 KYMR at 51.00%. As a Healthcare name, KYMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KYMR-specific events.
KYMR 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. KYMR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KYMR alongside the broader basket even when KYMR-specific fundamentals are unchanged. Always rebuild the position from current KYMR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KYMR?
- A butterfly on KYMR is the butterfly strategy applied to KYMR (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 KYMR stock trading near $114.79, the strikes shown on this page are snapped to the nearest listed KYMR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KYMR 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 KYMR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.00%), the computed maximum profit is $432.82 per contract and the computed maximum loss is -$30.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KYMR butterfly?
- The breakeven for the KYMR butterfly priced on this page is roughly $110.06 and $119.70 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 KYMR market-implied 1-standard-deviation expected move is approximately 14.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KYMR?
- Butterflies on KYMR are pinning bets - traders use them when they expect KYMR 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 KYMR implied volatility affect this butterfly?
- KYMR ATM IV is at 51.00% with IV rank near 6.82%, 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.