How are MNKD 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 MNKD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $23.00 per contract and the computed maximum loss is -$27.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MNKD butterfly?

The breakeven for the MNKD butterfly priced on this page is roughly $3.77 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 MNKD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MNKD implied volatility affect this butterfly?

MNKD ATM IV is at 35.70% with IV rank near 6.29%, 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.

MNKD Butterfly Strategy

MNKD (MannKind Corporation), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

MannKind Corporation operates as a biopharmaceutical firm, primarily focused on innovating and bringing to market respiratory-delivered treatments. Its efforts are directed towards tackling endocrine system disorders and rare lung conditions within the U.S. market. The company's key product is Afrezza, an inhaled insulin designed to improve glycemic control for adults managing diabetes. MannKind also actively markets Thyquidity, promoting it to adult and pediatric endocrinologists and other healthcare professionals for the treatment of hypothyroidism. In terms of collaborations, MannKind holds a strategic licensing and partnership agreement with United Therapeutics Corporation. Furthermore, it is collaborating with NRx Pharmaceuticals to develop a dry powder formulation of ZYESAMI (aviptadil), which is a synthetic variant of human vasoactive intestinal peptide intended to shield cells from inflammatory processes.

MNKD (MannKind Corporation) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.23B, a beta of 1.10 versus the broader market, a 52-week range of 2.23-6.51, average daily share volume of 5.3M, a public-listing history dating back to 2004, approximately 592 full-time employees. These structural characteristics shape how MNKD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.10 places MNKD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on MNKD?

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.

MNKD snapshot

As of August 14, 2026, spot at $3.83, ATM IV 35.70%, IV rank 6.29%, expected move 10.24%. The butterfly on MNKD 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 7-day expiry.

Why this butterfly structure on MNKD specifically: MNKD IV at 35.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a MNKD butterfly, with a market-implied 1-standard-deviation move of approximately 10.24% (roughly $0.39 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MNKD expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNKD should anchor to the underlying notional of $3.83 per share and to the trader's directional view on MNKD stock.

MNKD butterfly setup

The MNKD butterfly 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 MNKD at $3.83 on that close, the first option leg uses a $3.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MNKD chain at a 7-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 MNKD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$3.50	$0.37
Sell 2	Call	$4.00	$0.10
Buy 1	Call	$4.00	$0.10

MNKD butterfly risk and reward

Net Premium / Debit: -$27.00
Max Profit (per contract): $23.00
Max Loss (per contract): -$27.00
Breakeven(s): $3.77
Risk / Reward Ratio: 0.852

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.

MNKD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MNKD. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.7%	-$27.00
$0.86	-77.7%	-$27.00
$1.70	-55.6%	-$27.00
$2.55	-33.5%	-$27.00
$3.39	-11.4%	-$27.00
$4.24	+10.7%	+$23.00
$5.08	+32.8%	+$23.00
$5.93	+54.8%	+$23.00
$6.78	+76.9%	+$23.00
$7.62	+99.0%	+$23.00

When traders use butterfly on MNKD

Butterflies on MNKD are pinning bets - traders use them when they expect MNKD 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.

MNKD thesis for this butterfly

The market-implied 1-standard-deviation range for MNKD extends from approximately $3.44 on the downside to $4.22 on the upside. A MNKD long call butterfly is a pinning play: it pays maximum at the middle strike if MNKD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MNKD IV rank near 6.29% 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 MNKD at 35.70%. As a Healthcare name, MNKD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MNKD-specific events.

MNKD 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. MNKD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MNKD alongside the broader basket even when MNKD-specific fundamentals are unchanged. Always rebuild the position from current MNKD chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on MNKD?: A butterfly on MNKD is the butterfly strategy applied to MNKD (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 MNKD stock at $3.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MNKD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MNKD 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 MNKD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $23.00 per contract and the computed maximum loss is -$27.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MNKD butterfly?: The breakeven for the MNKD butterfly priced on this page is roughly $3.77 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 MNKD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MNKD?: Butterflies on MNKD are pinning bets - traders use them when they expect MNKD 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 MNKD implied volatility affect this butterfly?: MNKD ATM IV is at 35.70% with IV rank near 6.29%, 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.