ORIC Butterfly Strategy
ORIC (ORIC Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ORIC Pharmaceuticals, Inc. operates as a clinical-stage biopharmaceutical firm dedicated to discovering and advancing innovative treatments for cancer patients across the United States. The company's pipeline includes several key clinical-stage drug candidates. ORIC-533 is an oral small molecule designed to inhibit CD73, addressing resistance to both chemotherapy and immunotherapy. Another candidate, ORIC-944, is an allosteric inhibitor targeting the polycomb repressive complex 2, specifically for the treatment of prostate cancer. Furthermore, ORIC-114 is a brain-penetrant, orally administered, irreversible inhibitor crafted to precisely target epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2), demonstrating high potency against exon 20 insertion mutations. Beyond these advanced programs, ORIC Pharmaceuticals is also cultivating multiple early-stage precision medicines aimed at other mechanisms of cancer resistance.
ORIC (ORIC Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.42B, a beta of 0.97 versus the broader market, a 52-week range of 7.23-14.93, average daily share volume of 1.9M, a public-listing history dating back to 2020, approximately 111 full-time employees. These structural characteristics shape how ORIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places ORIC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on ORIC?
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.
ORIC snapshot
As of August 14, 2026, spot at $13.79, ATM IV 98.30%, IV rank 16.95%, expected move 28.18%. The butterfly on ORIC 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 butterfly structure on ORIC specifically: ORIC IV at 98.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a ORIC butterfly, with a market-implied 1-standard-deviation move of approximately 28.18% (roughly $3.89 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 ORIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORIC should anchor to the underlying notional of $13.79 per share and to the trader's directional view on ORIC stock.
ORIC butterfly setup
The ORIC 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 ORIC at $13.79 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORIC 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 ORIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $2.50 |
| Sell 2 | Call | $14.00 | $1.34 |
| Buy 1 | Call | $14.00 | $1.34 |
ORIC butterfly risk and reward
- Net Premium / Debit
- -$116.00
- Max Profit (per contract)
- -$16.00
- Max Loss (per contract)
- -$116.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- -0.138
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.
ORIC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ORIC. 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 | -99.9% | -$116.00 |
| $3.06 | -77.8% | -$116.00 |
| $6.11 | -55.7% | -$116.00 |
| $9.15 | -33.6% | -$116.00 |
| $12.20 | -11.5% | -$116.00 |
| $15.25 | +10.6% | -$16.00 |
| $18.30 | +32.7% | -$16.00 |
| $21.35 | +54.8% | -$16.00 |
| $24.39 | +76.9% | -$16.00 |
| $27.44 | +99.0% | -$16.00 |
When traders use butterfly on ORIC
Butterflies on ORIC are pinning bets - traders use them when they expect ORIC 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.
ORIC thesis for this butterfly
The market-implied 1-standard-deviation range for ORIC extends from approximately $9.90 on the downside to $17.68 on the upside. A ORIC long call butterfly is a pinning play: it pays maximum at the middle strike if ORIC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORIC IV rank near 16.95% 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 ORIC at 98.30%. As a Healthcare name, ORIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORIC-specific events.
ORIC 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. ORIC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORIC alongside the broader basket even when ORIC-specific fundamentals are unchanged. Always rebuild the position from current ORIC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ORIC?
- A butterfly on ORIC is the butterfly strategy applied to ORIC (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 ORIC stock at $13.79 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ORIC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ORIC 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 ORIC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 98.30%), the computed maximum profit is -$16.00 per contract and the computed maximum loss is -$116.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORIC butterfly?
- The breakeven for the ORIC butterfly priced on this page is no defined breakeven on the modeled curve 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 ORIC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ORIC?
- Butterflies on ORIC are pinning bets - traders use them when they expect ORIC 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 ORIC implied volatility affect this butterfly?
- ORIC ATM IV is at 98.30% with IV rank near 16.95%, 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.