OPK Butterfly Strategy
OPK (OPKO Health, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
OPKO Health, Inc., a healthcare company, engages in the diagnostics and pharmaceuticals businesses in the United States, Ireland, Chile, Spain, Israel, Mexico, and internationally. The company's Diagnostics segment operates BioReference Laboratories that offers laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases, including esoteric testing, molecular diagnostics, anatomical pathology, genetics, women's health, and correctional healthcare to physician offices, clinics, hospitals, employers and governmental units; and a novel diagnostic instrument system to provide blood test results in the point-of-care setting, as well as 4Kscore prostate cancer testing services. Its Pharmaceutical segment offers Rayaldee to treat secondary hyperparathyroidism in adults with stage 3 or 4 chronic kidney disease, and vitamin D insufficiency; OPK88004, an orally administered selective androgen receptor modulator; OPK88003, a once-weekly administered peptide for the treatment of type 2 diabetes and associated obesity that is in Phase IIb trials; and hGH-CTP, a once-weekly human growth hormone injection that completed Phase III clinical trial in partnership with Pfizer, Inc. This segment develops and commercializes longer-acting proprietary versions of already approved therapeutic proteins. The company also offers specialty APIs; develops, manufactures, markets, and sells pharmaceutical, nutraceutical, veterinary, and ophthalmic products; commercializes food supplements and over the counter products; manufactures and sells products primarily in the generics market; and imports, markets, distributes, and sells pharmaceutical products in a range of indications, including cardiovascular products, vaccines, antibiotics, gastro-intestinal products, hormones, and others. In addition, it operates pharmaceutical platforms in Ireland, Chile, Spain, and Mexico.
OPK (OPKO Health, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $838.2M, a beta of 1.41 versus the broader market, a 52-week range of 0.98-1.6, average daily share volume of 2.8M, a public-listing history dating back to 1995, approximately 3K full-time employees. These structural characteristics shape how OPK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates OPK 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 OPK?
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 OPK snapshot
As of May 15, 2026, spot at $1.10, ATM IV 48.40%, IV rank 7.63%, expected move 13.88%. The butterfly on OPK 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 34-day expiry.
Why this butterfly structure on OPK specifically: OPK IV at 48.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a OPK butterfly, with a market-implied 1-standard-deviation move of approximately 13.88% (roughly $0.15 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OPK expiries trade a higher absolute premium for lower per-day decay. Position sizing on OPK should anchor to the underlying notional of $1.10 per share and to the trader's directional view on OPK stock.
OPK butterfly setup
The OPK 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 OPK near $1.10, the first option leg uses a $1.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OPK chain at a 34-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 OPK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.05 | N/A |
| Sell 2 | Call | $1.10 | N/A |
| Buy 1 | Call | $1.16 | N/A |
OPK 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.
OPK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OPK. 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 OPK
Butterflies on OPK are pinning bets - traders use them when they expect OPK 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.
OPK thesis for this butterfly
The market-implied 1-standard-deviation range for OPK extends from approximately $0.95 on the downside to $1.25 on the upside. A OPK long call butterfly is a pinning play: it pays maximum at the middle strike if OPK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OPK IV rank near 7.63% 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 OPK at 48.40%. As a Healthcare name, OPK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OPK-specific events.
OPK 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. OPK positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OPK alongside the broader basket even when OPK-specific fundamentals are unchanged. Always rebuild the position from current OPK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OPK?
- A butterfly on OPK is the butterfly strategy applied to OPK (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 OPK stock trading near $1.10, the strikes shown on this page are snapped to the nearest listed OPK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OPK 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 OPK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 48.40%), 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 OPK butterfly?
- The breakeven for the OPK 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 OPK market-implied 1-standard-deviation expected move is approximately 13.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OPK?
- Butterflies on OPK are pinning bets - traders use them when they expect OPK 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 OPK implied volatility affect this butterfly?
- OPK ATM IV is at 48.40% with IV rank near 7.63%, 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.