How are ORKA 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 ORKA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 80.80%), the computed maximum profit is $446.26 per contract and the computed maximum loss is -$5.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ORKA butterfly?

The breakeven for the ORKA butterfly priced on this page is roughly $105.02 and $115.42 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 ORKA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ORKA implied volatility affect this butterfly?

ORKA ATM IV is at 80.80% with IV rank near 13.57%, 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.

ORKA Butterfly Strategy

ORKA (Oruka Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Oruka Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing novel monoclonal antibody therapeutics for psoriasis (PsO), and other inflammatory and immunology (I&I) indications. Its lead products include ORKA-001 that targets p19 subunit of interleukin-23, which is in phase 2a trial for the treatment of PsO; and ORKA-002 that targets interleukin-17A and interleukin-17F, which is in phase 2 trial for the treatment of PsO, psoriatic arthritis, and other conditions. The company also develops ORKA-003 for targeting an undisclosed pathway; and ORKA-021, a sequential combination regimen of ORKA-002 and ORKA-001. Oruka Therapeutics, Inc. is headquartered in Menlo Park, California.

ORKA (Oruka Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.48B, a beta of -0.39 versus the broader market, a 52-week range of 14.03-109.415, average daily share volume of 1.6M, a public-listing history dating back to 1997, approximately 68 full-time employees. These structural characteristics shape how ORKA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.39 indicates ORKA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ORKA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ORKA?

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.

ORKA snapshot

As of August 14, 2026, spot at $109.93, ATM IV 80.80%, IV rank 13.57%, expected move 23.16%. The butterfly on ORKA 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 ORKA specifically: ORKA IV at 80.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a ORKA butterfly, with a market-implied 1-standard-deviation move of approximately 23.16% (roughly $25.46 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 ORKA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORKA should anchor to the underlying notional of $109.93 per share and to the trader's directional view on ORKA stock.

ORKA butterfly setup

The ORKA 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 ORKA at $109.93 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORKA 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 ORKA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$12.60
Sell 2	Call	$110.00	$10.45
Buy 1	Call	$115.00	$8.35

ORKA butterfly risk and reward

Net Premium / Debit: -$5.00
Max Profit (per contract): $446.26
Max Loss (per contract): -$5.00
Breakeven(s): $105.02, $115.42
Risk / Reward Ratio: 89.252

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.

ORKA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ORKA. 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	-100.0%	-$5.00
$24.32	-77.9%	-$5.00
$48.62	-55.8%	-$5.00
$72.93	-33.7%	-$5.00
$97.23	-11.6%	-$5.00
$121.54	+10.6%	-$5.00
$145.84	+32.7%	-$5.00
$170.15	+54.8%	-$5.00
$194.45	+76.9%	-$5.00
$218.76	+99.0%	-$5.00

When traders use butterfly on ORKA

Butterflies on ORKA are pinning bets - traders use them when they expect ORKA 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.

ORKA thesis for this butterfly

The market-implied 1-standard-deviation range for ORKA extends from approximately $84.47 on the downside to $135.39 on the upside. A ORKA long call butterfly is a pinning play: it pays maximum at the middle strike if ORKA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORKA IV rank near 13.57% 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 ORKA at 80.80%. As a Healthcare name, ORKA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORKA-specific events.

ORKA 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. ORKA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORKA alongside the broader basket even when ORKA-specific fundamentals are unchanged. Always rebuild the position from current ORKA chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on ORKA?: A butterfly on ORKA is the butterfly strategy applied to ORKA (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 ORKA stock at $109.93 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ORKA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ORKA 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 ORKA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 80.80%), the computed maximum profit is $446.26 per contract and the computed maximum loss is -$5.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ORKA butterfly?: The breakeven for the ORKA butterfly priced on this page is roughly $105.02 and $115.42 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 ORKA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ORKA?: Butterflies on ORKA are pinning bets - traders use them when they expect ORKA 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 ORKA implied volatility affect this butterfly?: ORKA ATM IV is at 80.80% with IV rank near 13.57%, 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.