ORMP Butterfly Strategy
ORMP (Oramed Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Oramed Pharmaceuticals Inc., founded in 2002 and based in New York, New York, specializes in the development of groundbreaking pharmaceutical treatments. Their primary focus is on creating orally ingested capsules or pills for the delivery of polypeptides, particularly aimed at managing diabetes. The company's leading product, ORMD-0801, is an oral insulin capsule that has successfully completed Phase II clinical trials for patients with diabetes. Oramed is also advancing ORMD-0901, an oral glucagon-like peptide-1 (GLP-1) capsule, which has concluded Phase I clinical trials for the treatment of type 2 diabetes. Additionally, an oral leptin capsule for weight loss is currently under development. The firm was originally incorporated as Integrated Security Technologies, Inc., before officially changing its name to Oramed Pharmaceuticals Inc. in April 2006.
ORMP (Oramed Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $174.8M, a trailing P/E of 1.00, a beta of 1.16 versus the broader market, a 52-week range of 1.98-5.19, average daily share volume of 247K, a public-listing history dating back to 2007, approximately 13 full-time employees. These structural characteristics shape how ORMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places ORMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 1.00 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ORMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ORMP?
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.
ORMP snapshot
As of August 14, 2026, spot at $4.47, ATM IV 169.20%, IV rank 44.05%, expected move 48.51%. The butterfly on ORMP below is built from the 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 ORMP specifically: ORMP IV at 169.20% 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 48.51% (roughly $2.17 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 ORMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORMP should anchor to the underlying notional of $4.47 per share and to the trader's directional view on ORMP stock.
ORMP butterfly setup
The ORMP 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 ORMP at $4.47 on that close, the first option leg uses a $4.25 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORMP 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 ORMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.25 | N/A |
| Sell 2 | Call | $4.47 | N/A |
| Buy 1 | Call | $4.69 | N/A |
ORMP 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.
ORMP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ORMP. 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 ORMP
Butterflies on ORMP are pinning bets - traders use them when they expect ORMP 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.
ORMP thesis for this butterfly
The market-implied 1-standard-deviation range for ORMP extends from approximately $2.30 on the downside to $6.64 on the upside. A ORMP long call butterfly is a pinning play: it pays maximum at the middle strike if ORMP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORMP IV rank near 44.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ORMP should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ORMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORMP-specific events.
ORMP 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. ORMP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORMP alongside the broader basket even when ORMP-specific fundamentals are unchanged. Always rebuild the position from current ORMP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ORMP?
- A butterfly on ORMP is the butterfly strategy applied to ORMP (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 ORMP stock at $4.47 on the most recent close, the strikes shown on this page are snapped to the nearest listed ORMP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ORMP 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 ORMP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 169.20%), 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 ORMP butterfly?
- The breakeven for the ORMP butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 ORMP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 48.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ORMP?
- Butterflies on ORMP are pinning bets - traders use them when they expect ORMP 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 ORMP implied volatility affect this butterfly?
- ORMP ATM IV is at 169.20% with IV rank near 44.05%, 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.