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 221.00%), the computed maximum profit is $28.00 per contract and the computed maximum loss is -$72.00 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 $9.28 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 63.36%; 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 221.00% with IV rank near 38.49%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

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 $986.5M, a beta of 1.06 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 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 1.06 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 June 26, 2026, spot at $9.28, ATM IV 221.00%, IV rank 38.49%, expected move 63.36%. 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 53-day expiry.

Why this butterfly structure on ORIC specifically: ORIC IV at 221.00% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 63.36% (roughly $5.88 on the underlying). The 53-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 $9.28 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 $9.28, the first option leg uses a $9.00 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 53-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	$9.00	$2.65
Sell 2	Call	$9.00	$2.65
Buy 1	Call	$10.00	$2.37

ORIC butterfly risk and reward

Net Premium / Debit: +$28.00
Max Profit (per contract): $28.00
Max Loss (per contract): -$72.00
Breakeven(s): $9.28
Risk / Reward Ratio: 0.389

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.

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	-99.9%	+$28.00
$2.06	-77.8%	+$28.00
$4.11	-55.7%	+$28.00
$6.16	-33.6%	+$28.00
$8.21	-11.5%	+$28.00
$10.26	+10.6%	-$72.00
$12.31	+32.7%	-$72.00
$14.37	+54.8%	-$72.00
$16.42	+76.9%	-$72.00
$18.47	+99.0%	-$72.00

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 $3.40 on the downside to $15.16 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 38.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ORIC should anchor more to the directional view and the expected-move geometry. 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 $9.28, 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 221.00%), the computed maximum profit is $28.00 per contract and the computed maximum loss is -$72.00 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 $9.28 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 63.36%; 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 221.00% with IV rank near 38.49%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.