PROK Butterfly Strategy
PROK (ProKidney Corp.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ProKidney Corp. is a biotechnology firm currently in the clinical trial phase, specializing in the development of innovative cell-based treatments. Their flagship product is Renal Autologous Cell Therapy (RAC-T), a unique cellular admixture derived from a patient's own cells. RAC-T is undergoing significant clinical evaluation; it is concurrently in Phase III and Phase II trials for individuals with moderate to severe diabetic kidney disease. Furthermore, the company is conducting a Phase I clinical trial to assess RAC-T's potential for patients born with congenital anomalies affecting the kidneys and urinary tract. The company was established in 2015 and operates from its headquarters in Winston-Salem, North Carolina.
PROK (ProKidney Corp.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $497.7M, a beta of 1.72 versus the broader market, a 52-week range of 1.41-3.48, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 231 full-time employees. These structural characteristics shape how PROK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.72 indicates PROK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on PROK?
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.
PROK snapshot
As of August 14, 2026, spot at $1.31, ATM IV 238.60%, IV rank 49.30%, expected move 68.40%. The butterfly on PROK 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 PROK specifically: PROK IV at 238.60% 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 68.40% (roughly $0.90 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 PROK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PROK should anchor to the underlying notional of $1.31 per share and to the trader's directional view on PROK stock.
PROK butterfly setup
The PROK 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 PROK at $1.31 on that close, the first option leg uses a $1.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PROK 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 PROK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.24 | N/A |
| Sell 2 | Call | $1.31 | N/A |
| Buy 1 | Call | $1.38 | N/A |
PROK 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.
PROK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PROK. 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 PROK
Butterflies on PROK are pinning bets - traders use them when they expect PROK 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.
PROK thesis for this butterfly
The market-implied 1-standard-deviation range for PROK extends from approximately $0.41 on the downside to $2.21 on the upside. A PROK long call butterfly is a pinning play: it pays maximum at the middle strike if PROK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PROK IV rank near 49.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PROK should anchor more to the directional view and the expected-move geometry. As a Healthcare name, PROK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PROK-specific events.
PROK 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. PROK positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PROK alongside the broader basket even when PROK-specific fundamentals are unchanged. Always rebuild the position from current PROK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PROK?
- A butterfly on PROK is the butterfly strategy applied to PROK (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 PROK stock at $1.31 on the most recent close, the strikes shown on this page are snapped to the nearest listed PROK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PROK 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 PROK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 238.60%), 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 PROK butterfly?
- The breakeven for the PROK 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 PROK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 68.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PROK?
- Butterflies on PROK are pinning bets - traders use them when they expect PROK 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 PROK implied volatility affect this butterfly?
- PROK ATM IV is at 238.60% with IV rank near 49.30%, 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.