KYTX Butterfly Strategy
KYTX (Kyverna Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Kyverna Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing cell therapies for patients suffering from autoimmune diseases. Its lead product candidate is KYV-101, an autologous CD19 CAR T-cell product candidate for the treatment of patients with lupus nephritis and systemic sclerosis that is in Phase I clinical trial; and for myasthenia gravis and multiple sclerosis that is in Phase II clinical trial. The company is also developing KYV-201, an allogeneic CD19 CAR T-cell product candidate that is in preclinical stage to treat multiple autoimmune diseases. In addition, it is developing product candidates to treat other autoimmune diseases, such as inflammatory bowel disease that includes Crohn's disease and ulcerative colitis. Kyverna Therapeutics, Inc. has a license and collaboration agreement with Intellia Therapeutics, Inc. to research and develop an allogeneic CD19-directed CAR cell therapy product; and with Kite to research and develop programs for the treatment, diagnosis, and prevention of autoimmune, inflammatory, and allogeneic stem cell transplant inflammatory diseases. The company was formerly known as BAIT Therapeutics, Inc. and changed its name to Kyverna Therapeutics, Inc. in October 2019.
KYTX (Kyverna Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $472.1M, a beta of 2.06 versus the broader market, a 52-week range of 2.06-13.67, average daily share volume of 851K, a public-listing history dating back to 2024, approximately 112 full-time employees. These structural characteristics shape how KYTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.06 indicates KYTX 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 KYTX?
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 KYTX snapshot
As of May 13, 2026, spot at $10.66, ATM IV 68.50%, IV rank 5.12%, expected move 19.64%. The butterfly on KYTX 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 36-day expiry.
Why this butterfly structure on KYTX specifically: KYTX IV at 68.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a KYTX butterfly, with a market-implied 1-standard-deviation move of approximately 19.64% (roughly $2.09 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KYTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KYTX should anchor to the underlying notional of $10.66 per share and to the trader's directional view on KYTX stock.
KYTX butterfly setup
The KYTX 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 KYTX near $10.66, the first option leg uses a $10.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KYTX chain at a 36-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 KYTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.13 | N/A |
| Sell 2 | Call | $10.66 | N/A |
| Buy 1 | Call | $11.19 | N/A |
KYTX 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.
KYTX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KYTX. 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 KYTX
Butterflies on KYTX are pinning bets - traders use them when they expect KYTX 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.
KYTX thesis for this butterfly
The market-implied 1-standard-deviation range for KYTX extends from approximately $8.57 on the downside to $12.75 on the upside. A KYTX long call butterfly is a pinning play: it pays maximum at the middle strike if KYTX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KYTX IV rank near 5.12% 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 KYTX at 68.50%. As a Healthcare name, KYTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KYTX-specific events.
KYTX 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. KYTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KYTX alongside the broader basket even when KYTX-specific fundamentals are unchanged. Always rebuild the position from current KYTX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KYTX?
- A butterfly on KYTX is the butterfly strategy applied to KYTX (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 KYTX stock trading near $10.66, the strikes shown on this page are snapped to the nearest listed KYTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KYTX 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 KYTX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 68.50%), 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 KYTX butterfly?
- The breakeven for the KYTX 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 KYTX market-implied 1-standard-deviation expected move is approximately 19.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KYTX?
- Butterflies on KYTX are pinning bets - traders use them when they expect KYTX 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 KYTX implied volatility affect this butterfly?
- KYTX ATM IV is at 68.50% with IV rank near 5.12%, 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.