How are AIA 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 AIA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is $425.57 per contract and the computed maximum loss is -$222.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIA butterfly?

The breakeven for the AIA butterfly priced on this page is roughly $133.23 and $142.78 at expiration, derived from the August 14, 2026 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 AIA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIA implied volatility affect this butterfly?

AIA ATM IV is at 29.70% with IV rank near 2.96%, 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.

AIA Butterfly Strategy

AIA (iShares Asia 50 ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

AIA is fairly straightforward: it is essentially a mega-cap fund that offers exposure to 50 of the largest companies in Asia. Only companies from four major Asian countries, mainly, Hong Kong, South Korea, Singapore, and Taiwan, can be included in the fund. It's a concentrated play that screens constituents by liquidity and market cap though, as is usually the case for some S&P indices, the stocks are personally picked by a committee before being included in the index. Stocks are also given weight based on their float market cap. However, any single issuer is limited to 22.5%, and the combined weight of all issuers that individually exceed 4.5% to a maximum of 45%. The index is rebalanced quarterly.

AIA (iShares Asia 50 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $5.04B, a beta of 1.22 versus the broader market, a 52-week range of 83.48-150.83, average daily share volume of 481K, a public-listing history dating back to 2007, approximately 21K full-time employees. These structural characteristics shape how AIA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.22 places AIA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AIA?

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.

AIA snapshot

As of August 14, 2026, spot at $138.17, ATM IV 29.70%, IV rank 2.96%, expected move 8.51%. The butterfly on AIA below is built from the August 14, 2026 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 AIA specifically: AIA IV at 29.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIA butterfly, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $11.76 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 AIA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIA should anchor to the underlying notional of $138.17 per share and to the trader's directional view on AIA etf.

AIA butterfly setup

The AIA butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIA at $138.17 on that close, the first option leg uses a $131.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIA 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 AIA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$131.00	$10.90
Sell 2	Call	$138.00	$6.15
Buy 1	Call	$145.00	$3.63

AIA butterfly risk and reward

Net Premium / Debit: -$222.50
Max Profit (per contract): $425.57
Max Loss (per contract): -$222.50
Breakeven(s): $133.23, $142.78
Risk / Reward Ratio: 1.913

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.

AIA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AIA. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$222.50
$30.56	-77.9%	-$222.50
$61.11	-55.8%	-$222.50
$91.66	-33.7%	-$222.50
$122.21	-11.6%	-$222.50
$152.76	+10.6%	-$222.50
$183.30	+32.7%	-$222.50
$213.85	+54.8%	-$222.50
$244.40	+76.9%	-$222.50
$274.95	+99.0%	-$222.50

When traders use butterfly on AIA

Butterflies on AIA are pinning bets - traders use them when they expect AIA 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.

AIA thesis for this butterfly

The market-implied 1-standard-deviation range for AIA extends from approximately $126.41 on the downside to $149.93 on the upside. A AIA long call butterfly is a pinning play: it pays maximum at the middle strike if AIA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIA IV rank near 2.96% 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 AIA at 29.70%. As a Financial Services name, AIA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIA-specific events.

AIA 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. AIA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIA alongside the broader basket even when AIA-specific fundamentals are unchanged. Always rebuild the position from current AIA chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on AIA?: A butterfly on AIA is the butterfly strategy applied to AIA (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 AIA etf at $138.17 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AIA 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 AIA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is $425.57 per contract and the computed maximum loss is -$222.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIA butterfly?: The breakeven for the AIA butterfly priced on this page is roughly $133.23 and $142.78 at expiration, derived from the August 14, 2026 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 AIA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AIA?: Butterflies on AIA are pinning bets - traders use them when they expect AIA 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 AIA implied volatility affect this butterfly?: AIA ATM IV is at 29.70% with IV rank near 2.96%, 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.