TKNO Butterfly Strategy
TKNO (Alpha Teknova, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Alpha Teknova, Inc. supplies vital scientific reagents to the life sciences sector across both the United States and international markets. These crucial materials play a key role in facilitating the exploration, evolution, and ultimate production of biopharmaceutical goods, such as advanced drug treatments, new vaccines, and molecular diagnostic solutions. The company's product offerings encompass pre-filled media plates designed for cell growth and replication; liquid cell culture media and complementary supplements that promote cellular proliferation; and various molecular biology reagents used for the handling, rehydration, and purification of samples. Teknova caters to a diverse clientele within the life sciences arena, including pharmaceutical companies, biotechnology firms, contract development and manufacturing organizations (CDMOs), in vitro diagnostic businesses, and academic and governmental research facilities. Founded in 1996, Alpha Teknova's main office is situated in Hollister, California.
TKNO (Alpha Teknova, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $396.2M, a beta of 0.68 versus the broader market, a 52-week range of 1.91-7.435, average daily share volume of 155K, a public-listing history dating back to 2021, approximately 158 full-time employees. These structural characteristics shape how TKNO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates TKNO 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 TKNO?
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.
TKNO snapshot
As of August 14, 2026, spot at $7.28, ATM IV 103.00%, IV rank 20.53%, expected move 29.53%. The butterfly on TKNO 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 TKNO specifically: TKNO IV at 103.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a TKNO butterfly, with a market-implied 1-standard-deviation move of approximately 29.53% (roughly $2.15 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 TKNO expiries trade a higher absolute premium for lower per-day decay. Position sizing on TKNO should anchor to the underlying notional of $7.28 per share and to the trader's directional view on TKNO stock.
TKNO butterfly setup
The TKNO 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 TKNO at $7.28 on that close, the first option leg uses a $6.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TKNO 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 TKNO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.92 | N/A |
| Sell 2 | Call | $7.28 | N/A |
| Buy 1 | Call | $7.64 | N/A |
TKNO 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.
TKNO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TKNO. 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 TKNO
Butterflies on TKNO are pinning bets - traders use them when they expect TKNO 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.
TKNO thesis for this butterfly
The market-implied 1-standard-deviation range for TKNO extends from approximately $5.13 on the downside to $9.43 on the upside. A TKNO long call butterfly is a pinning play: it pays maximum at the middle strike if TKNO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TKNO IV rank near 20.53% 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 TKNO at 103.00%. As a Healthcare name, TKNO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TKNO-specific events.
TKNO 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. TKNO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TKNO alongside the broader basket even when TKNO-specific fundamentals are unchanged. Always rebuild the position from current TKNO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TKNO?
- A butterfly on TKNO is the butterfly strategy applied to TKNO (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 TKNO stock at $7.28 on the most recent close, the strikes shown on this page are snapped to the nearest listed TKNO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TKNO 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 TKNO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 103.00%), 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 TKNO butterfly?
- The breakeven for the TKNO 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 TKNO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TKNO?
- Butterflies on TKNO are pinning bets - traders use them when they expect TKNO 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 TKNO implied volatility affect this butterfly?
- TKNO ATM IV is at 103.00% with IV rank near 20.53%, 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.