OKLO Butterfly Strategy
OKLO (Oklo Inc.), in the Utilities sector, (Independent Power Producers industry), listed on NYSE.
Oklo Inc. develops advanced fission power plants to provide clean, reliable, and affordable energy at scale to customers in the United States. The company’s primary offering is the Aurora powerhouse, which is designed to produce between 15 and up to 75 megawatts of electricity. The company is also commercializing nuclear fuel recycling, fuel fabrication technology that can convert used nuclear fuel into usable fuel for its reactors, and the production of radioisotopes. The company has a strategic partnership with Blykalla AB for the development of advanced nuclear reactor technology and its commercialization. The company was formerly known as AltC Acquisition Corp. and changed its name to Oklo Inc. in May 2024. Oklo Inc. was founded in 2013 and is headquartered in Santa Clara, California.
OKLO (Oklo Inc.) trades in the Utilities sector, specifically Independent Power Producers, with a market capitalization of approximately $7.85B, a beta of 1.19 versus the broader market, a 52-week range of 36.61-193.84, average daily share volume of 12.3M, a public-listing history dating back to 2021, approximately 215 full-time employees. These structural characteristics shape how OKLO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.19 places OKLO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on OKLO?
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.
OKLO snapshot
As of August 14, 2026, spot at $44.94, ATM IV 77.77%, IV rank 3.54%, expected move 22.30%. The butterfly on OKLO 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 28-day expiry.
Why this butterfly structure on OKLO specifically: OKLO IV at 77.77% is on the cheap side of its 1-year range, which favors premium-buying structures like a OKLO butterfly, with a market-implied 1-standard-deviation move of approximately 22.30% (roughly $10.02 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OKLO expiries trade a higher absolute premium for lower per-day decay. Position sizing on OKLO should anchor to the underlying notional of $44.94 per share and to the trader's directional view on OKLO stock.
OKLO butterfly setup
The OKLO 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 OKLO at $44.94 on that close, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OKLO chain at a 28-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 OKLO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $43.00 | $4.73 |
| Sell 2 | Call | $45.00 | $3.85 |
| Buy 1 | Call | $47.00 | $3.09 |
OKLO butterfly risk and reward
- Net Premium / Debit
- -$11.00
- Max Profit (per contract)
- $171.92
- Max Loss (per contract)
- -$11.00
- Breakeven(s)
- $43.05, $46.89
- Risk / Reward Ratio
- 15.629
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.
OKLO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OKLO. 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% | -$11.00 |
| $9.95 | -77.9% | -$11.00 |
| $19.88 | -55.8% | -$11.00 |
| $29.82 | -33.7% | -$11.00 |
| $39.75 | -11.5% | -$11.00 |
| $49.69 | +10.6% | -$11.00 |
| $59.62 | +32.7% | -$11.00 |
| $69.56 | +54.8% | -$11.00 |
| $79.49 | +76.9% | -$11.00 |
| $89.43 | +99.0% | -$11.00 |
When traders use butterfly on OKLO
Butterflies on OKLO are pinning bets - traders use them when they expect OKLO 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.
OKLO thesis for this butterfly
The market-implied 1-standard-deviation range for OKLO extends from approximately $34.92 on the downside to $54.96 on the upside. A OKLO long call butterfly is a pinning play: it pays maximum at the middle strike if OKLO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OKLO IV rank near 3.54% 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 OKLO at 77.77%. As a Utilities name, OKLO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OKLO-specific events.
OKLO 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. OKLO positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OKLO alongside the broader basket even when OKLO-specific fundamentals are unchanged. Always rebuild the position from current OKLO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OKLO?
- A butterfly on OKLO is the butterfly strategy applied to OKLO (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 OKLO stock at $44.94 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OKLO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OKLO 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 OKLO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 77.77%), the computed maximum profit is $171.92 per contract and the computed maximum loss is -$11.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OKLO butterfly?
- The breakeven for the OKLO butterfly priced on this page is roughly $43.05 and $46.89 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 OKLO 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 OKLO?
- Butterflies on OKLO are pinning bets - traders use them when they expect OKLO 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 OKLO implied volatility affect this butterfly?
- OKLO ATM IV is at 77.77% with IV rank near 3.54%, 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.