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 end-of-day chain at a 30-day expiry (ATM IV 98.50%), the computed maximum profit is $40.00 per contract and the computed maximum loss is -$60.00 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 roughly $8.40 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 ORIC market-implied 1-standard-deviation expected move is approximately 28.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ORIC implied volatility affect this butterfly?

ORIC ATM IV is at 98.50% with IV rank near 9.99%, 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.

ORIC Butterfly Strategy

ORIC (ORIC Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

ORIC Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers and develops therapies for treatment of cancers in the United States. Its clinical stage product candidates include ORIC-533, an orally bioavailable small molecule inhibitor of CD73 being developed for resistance to chemotherapy- and immunotherapy-based treatment regimens; ORIC-944, an allosteric inhibitor of the polycomb repressive complex 2 for prostate cancer; and ORIC-114, a brain penetrant orally bioavailable irreversible inhibitor designed to selectively target epidermal growth factor receptor and human epidermal growth factor receptor 2 with high potency towards exon 20 insertion mutations. The company is also developing multiple discovery stage precision medicines targeting other cancer resistance mechanisms. It has a license and collaboration agreement with Voronoi Inc.; and a license agreement with Mirati Therapeutics, Inc. The company was incorporated in 2014 and is headquartered in South San Francisco, California.

ORIC (ORIC Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $890.3M, a beta of 1.11 versus the broader market, a 52-week range of 4.535-14.93, average daily share volume of 1.9M, a public-listing history dating back to 2020, approximately 122 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 1.11 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.

Current ORIC snapshot

As of May 15, 2026, spot at $8.18, ATM IV 98.50%, IV rank 9.99%, expected move 28.24%. The butterfly on ORIC 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 ORIC specifically: ORIC IV at 98.50% 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 28.24% (roughly $2.31 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 ORIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORIC should anchor to the underlying notional of $8.18 per share and to the trader's directional view on ORIC stock.

ORIC butterfly setup

The ORIC 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 ORIC near $8.18, the first option leg uses a $8.00 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 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 ORIC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.00	$1.07
Sell 2	Call	$8.00	$1.07
Buy 1	Call	$9.00	$0.67

ORIC butterfly risk and reward

Net Premium / Debit: +$40.00
Max Profit (per contract): $40.00
Max Loss (per contract): -$60.00
Breakeven(s): $8.40
Risk / Reward Ratio: 0.667

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%	+$40.00
$1.82	-77.8%	+$40.00
$3.63	-55.7%	+$40.00
$5.43	-33.6%	+$40.00
$7.24	-11.5%	+$40.00
$9.05	+10.6%	-$60.00
$10.86	+32.7%	-$60.00
$12.66	+54.8%	-$60.00
$14.47	+76.9%	-$60.00
$16.28	+99.0%	-$60.00

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 $5.87 on the downside to $10.49 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 9.99% 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 98.50%. 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 trading near $8.18, the strikes shown on this page are snapped to the nearest listed ORIC chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 98.50%), the computed maximum profit is $40.00 per contract and the computed maximum loss is -$60.00 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 roughly $8.40 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 ORIC market-implied 1-standard-deviation expected move is approximately 28.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on 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 98.50% with IV rank near 9.99%, 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.