PURR Butterfly Strategy
PURR (Hyperliquid Strategies Inc Common Stock), in the Basic Materials sector, (Agricultural Inputs industry), listed on NASDAQ.
Hyperliquid Strategies, Inc. is a holding and operating company, which engages in the business of crypto asset management. The firm operates as a digital asset treasury company which focuses on the Hyperliquid ecosystem. The company was founded on July 2, 2025 and is headquartered in New York, NY.
PURR (Hyperliquid Strategies Inc Common Stock) trades in the Basic Materials sector, specifically Agricultural Inputs, with a market capitalization of approximately $752.5M, a beta of 0.18 versus the broader market, a 52-week range of 3.01-7.09, average daily share volume of 5.4M, a public-listing history dating back to 2025. These structural characteristics shape how PURR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.18 indicates PURR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on PURR?
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 PURR snapshot
As of May 15, 2026, spot at $7.01, ATM IV 108.10%, expected move 30.99%. The butterfly on PURR 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 PURR specifically: IV rank is unavailable in the current snapshot, so regime-based timing for PURR is inferred from ATM IV at 108.10% alone, with a market-implied 1-standard-deviation move of approximately 30.99% (roughly $2.17 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 PURR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PURR should anchor to the underlying notional of $7.01 per share and to the trader's directional view on PURR stock.
PURR butterfly setup
The PURR 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 PURR near $7.01, the first option leg uses a $6.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PURR 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 PURR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.66 | N/A |
| Sell 2 | Call | $7.01 | N/A |
| Buy 1 | Call | $7.36 | N/A |
PURR 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.
PURR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PURR. 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 PURR
Butterflies on PURR are pinning bets - traders use them when they expect PURR 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.
PURR thesis for this butterfly
The market-implied 1-standard-deviation range for PURR extends from approximately $4.84 on the downside to $9.18 on the upside. A PURR long call butterfly is a pinning play: it pays maximum at the middle strike if PURR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Basic Materials name, PURR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PURR-specific events.
PURR 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. PURR positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PURR alongside the broader basket even when PURR-specific fundamentals are unchanged. Always rebuild the position from current PURR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PURR?
- A butterfly on PURR is the butterfly strategy applied to PURR (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 PURR stock trading near $7.01, the strikes shown on this page are snapped to the nearest listed PURR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PURR 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 PURR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 108.10%), 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 PURR butterfly?
- The breakeven for the PURR butterfly priced on this page is no defined breakeven on the modeled curve 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 PURR market-implied 1-standard-deviation expected move is approximately 30.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PURR?
- Butterflies on PURR are pinning bets - traders use them when they expect PURR 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 PURR implied volatility affect this butterfly?
- Current PURR ATM IV is 108.10%; IV rank context is unavailable in the current snapshot.