ACIO Butterfly Strategy
ACIO (Aptus Collared Income Opportunity ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
An actively-managed strategy seeking growth and income using covered calls on individual equities. The strategy invests in 70-80 large cap stocks and pursues additional income by selling covered calls on those stocks. ACIO has an added goal of minimizing downside using long put options on a broad-based market Index.
ACIO (Aptus Collared Income Opportunity ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $2.29B, a beta of 0.73 versus the broader market, a 52-week range of 39.54-46.44, average daily share volume of 129K, a public-listing history dating back to 2019. These structural characteristics shape how ACIO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.73 places ACIO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ACIO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ACIO?
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 ACIO snapshot
As of May 15, 2026, spot at $46.26, ATM IV 10.70%, IV rank 8.50%, expected move 3.07%. The butterfly on ACIO 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 ACIO specifically: ACIO IV at 10.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a ACIO butterfly, with a market-implied 1-standard-deviation move of approximately 3.07% (roughly $1.42 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 ACIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACIO should anchor to the underlying notional of $46.26 per share and to the trader's directional view on ACIO etf.
ACIO butterfly setup
The ACIO 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 ACIO near $46.26, the first option leg uses a $44.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACIO 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 ACIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $44.00 | $2.25 |
| Sell 2 | Call | $46.00 | $1.03 |
| Buy 1 | Call | $49.00 | $0.11 |
ACIO butterfly risk and reward
- Net Premium / Debit
- -$30.00
- Max Profit (per contract)
- $166.74
- Max Loss (per contract)
- -$130.00
- Breakeven(s)
- $44.30, $47.70
- Risk / Reward Ratio
- 1.283
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.
ACIO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ACIO. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$30.00 |
| $10.24 | -77.9% | -$30.00 |
| $20.46 | -55.8% | -$30.00 |
| $30.69 | -33.7% | -$30.00 |
| $40.92 | -11.5% | -$30.00 |
| $51.15 | +10.6% | -$130.00 |
| $61.37 | +32.7% | -$130.00 |
| $71.60 | +54.8% | -$130.00 |
| $81.83 | +76.9% | -$130.00 |
| $92.06 | +99.0% | -$130.00 |
When traders use butterfly on ACIO
Butterflies on ACIO are pinning bets - traders use them when they expect ACIO 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.
ACIO thesis for this butterfly
The market-implied 1-standard-deviation range for ACIO extends from approximately $44.84 on the downside to $47.68 on the upside. A ACIO long call butterfly is a pinning play: it pays maximum at the middle strike if ACIO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ACIO IV rank near 8.50% 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 ACIO at 10.70%. As a Financial Services name, ACIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACIO-specific events.
ACIO 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. ACIO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACIO alongside the broader basket even when ACIO-specific fundamentals are unchanged. Always rebuild the position from current ACIO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ACIO?
- A butterfly on ACIO is the butterfly strategy applied to ACIO (etf). 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 ACIO etf trading near $46.26, the strikes shown on this page are snapped to the nearest listed ACIO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACIO 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 ACIO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 10.70%), the computed maximum profit is $166.74 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ACIO butterfly?
- The breakeven for the ACIO butterfly priced on this page is roughly $44.30 and $47.70 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 ACIO market-implied 1-standard-deviation expected move is approximately 3.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ACIO?
- Butterflies on ACIO are pinning bets - traders use them when they expect ACIO 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 ACIO implied volatility affect this butterfly?
- ACIO ATM IV is at 10.70% with IV rank near 8.50%, 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.