KYMR Straddle 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 $9.66B, a beta of 1.95 versus the broader market, a 52-week range of 39.84-130.05, average daily share volume of 733K, a public-listing history dating back to 2020, approximately 273 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 1.95 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 straddle on KYMR?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
KYMR snapshot
As of August 14, 2026, spot at $117.47, ATM IV 44.80%, IV rank 1.00%, expected move 12.84%. The straddle on KYMR 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 35-day expiry.
Why this straddle structure on KYMR specifically: KYMR IV at 44.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a KYMR straddle, with a market-implied 1-standard-deviation move of approximately 12.84% (roughly $15.09 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 KYMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on KYMR should anchor to the underlying notional of $117.47 per share and to the trader's directional view on KYMR stock.
KYMR straddle setup
The KYMR straddle 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 KYMR at $117.47 on that close, the first option leg uses a $115.00 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 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 KYMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $115.00 | $7.60 |
| Buy 1 | Put | $115.00 | $5.60 |
KYMR straddle risk and reward
- Net Premium / Debit
- -$1,320.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,272.36
- Breakeven(s)
- $101.80, $128.20
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
KYMR straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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% | +$10,179.00 |
| $25.98 | -77.9% | +$7,581.78 |
| $51.95 | -55.8% | +$4,984.57 |
| $77.93 | -33.7% | +$2,387.35 |
| $103.90 | -11.6% | -$209.86 |
| $129.87 | +10.6% | +$167.08 |
| $155.84 | +32.7% | +$2,764.30 |
| $181.82 | +54.8% | +$5,361.51 |
| $207.79 | +76.9% | +$7,958.73 |
| $233.76 | +99.0% | +$10,555.94 |
When traders use straddle on KYMR
Straddles on KYMR are pure-volatility plays that profit from large moves in either direction; traders typically buy KYMR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
KYMR thesis for this straddle
The market-implied 1-standard-deviation range for KYMR extends from approximately $102.38 on the downside to $132.56 on the upside. A KYMR long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current KYMR IV rank near 1.00% 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 44.80%. 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 straddle positions are structurally neutral / high-volatility (long premium); 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 straddle on KYMR?
- A straddle on KYMR is the straddle strategy applied to KYMR (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With KYMR stock at $117.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KYMR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KYMR straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the KYMR straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,272.36 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KYMR straddle?
- The breakeven for the KYMR straddle priced on this page is roughly $101.80 and $128.20 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 KYMR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on KYMR?
- Straddles on KYMR are pure-volatility plays that profit from large moves in either direction; traders typically buy KYMR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current KYMR implied volatility affect this straddle?
- KYMR ATM IV is at 44.80% with IV rank near 1.00%, 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.