STTK Butterfly Strategy
STTK (Shattuck Labs, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Shattuck Labs, Inc., a clinical-stage biotechnology company, develops therapeutics for the treatment of cancer and autoimmune disease in the United States. The company's lead product candidate is SL-172154, which is in Phase 1 clinical trial for the treatment of ovarian, fallopian tube, and peritoneal cancers. It also develops SL-279252 that is in Phase 1 clinical trial in patients with advanced solid tumors and lymphoma. The company was incorporated in 2016 and is headquartered in Austin, Texas.
STTK (Shattuck Labs, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $323.3M, a beta of 1.19 versus the broader market, a 52-week range of 0.712-8.33, average daily share volume of 573K, a public-listing history dating back to 2020, approximately 44 full-time employees. These structural characteristics shape how STTK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.19 places STTK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on STTK?
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 STTK snapshot
As of May 15, 2026, spot at $6.28, ATM IV 164.60%, IV rank 31.20%, expected move 47.19%. The butterfly on STTK 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 STTK specifically: STTK IV at 164.60% 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 47.19% (roughly $2.96 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 STTK expiries trade a higher absolute premium for lower per-day decay. Position sizing on STTK should anchor to the underlying notional of $6.28 per share and to the trader's directional view on STTK stock.
STTK butterfly setup
The STTK 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 STTK near $6.28, the first option leg uses a $5.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STTK 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 STTK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.97 | N/A |
| Sell 2 | Call | $6.28 | N/A |
| Buy 1 | Call | $6.59 | N/A |
STTK 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.
STTK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on STTK. 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 STTK
Butterflies on STTK are pinning bets - traders use them when they expect STTK 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.
STTK thesis for this butterfly
The market-implied 1-standard-deviation range for STTK extends from approximately $3.32 on the downside to $9.24 on the upside. A STTK long call butterfly is a pinning play: it pays maximum at the middle strike if STTK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current STTK IV rank near 31.20% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on STTK should anchor more to the directional view and the expected-move geometry. As a Healthcare name, STTK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STTK-specific events.
STTK 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. STTK positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STTK alongside the broader basket even when STTK-specific fundamentals are unchanged. Always rebuild the position from current STTK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on STTK?
- A butterfly on STTK is the butterfly strategy applied to STTK (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 STTK stock trading near $6.28, the strikes shown on this page are snapped to the nearest listed STTK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STTK 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 STTK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 164.60%), 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 STTK butterfly?
- The breakeven for the STTK 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 STTK market-implied 1-standard-deviation expected move is approximately 47.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on STTK?
- Butterflies on STTK are pinning bets - traders use them when they expect STTK 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 STTK implied volatility affect this butterfly?
- STTK ATM IV is at 164.60% with IV rank near 31.20%, 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.