AIFD Butterfly Strategy
AIFD (TCW Artificial Intelligence ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund’s investment objective is long-term growth of capital. AIFD is an actively managed fund that aims to invest in companies across sectors that are leading the development and commercialization of artificial intelligence technology.
AIFD (TCW Artificial Intelligence ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $92.2M, a beta of 1.41 versus the broader market, a 52-week range of 27.2-51.29, average daily share volume of 22K, a public-listing history dating back to 2024. These structural characteristics shape how AIFD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates AIFD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on AIFD?
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 AIFD snapshot
As of May 15, 2026, spot at $50.70, ATM IV 33.20%, IV rank 19.58%, expected move 9.52%. The butterfly on AIFD 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 AIFD specifically: AIFD IV at 33.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIFD butterfly, with a market-implied 1-standard-deviation move of approximately 9.52% (roughly $4.83 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 AIFD expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIFD should anchor to the underlying notional of $50.70 per share and to the trader's directional view on AIFD etf.
AIFD butterfly setup
The AIFD 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 AIFD near $50.70, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIFD 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 AIFD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $48.00 | $3.65 |
| Sell 2 | Call | $50.00 | $2.70 |
| Buy 1 | Call | $55.00 | $0.80 |
AIFD butterfly risk and reward
- Net Premium / Debit
- +$95.00
- Max Profit (per contract)
- $289.08
- Max Loss (per contract)
- -$205.00
- Breakeven(s)
- $52.95
- Risk / Reward Ratio
- 1.410
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.
AIFD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIFD. 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% | +$95.00 |
| $11.22 | -77.9% | +$95.00 |
| $22.43 | -55.8% | +$95.00 |
| $33.64 | -33.7% | +$95.00 |
| $44.85 | -11.5% | +$95.00 |
| $56.05 | +10.6% | -$205.00 |
| $67.26 | +32.7% | -$205.00 |
| $78.47 | +54.8% | -$205.00 |
| $89.68 | +76.9% | -$205.00 |
| $100.89 | +99.0% | -$205.00 |
When traders use butterfly on AIFD
Butterflies on AIFD are pinning bets - traders use them when they expect AIFD 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.
AIFD thesis for this butterfly
The market-implied 1-standard-deviation range for AIFD extends from approximately $45.87 on the downside to $55.53 on the upside. A AIFD long call butterfly is a pinning play: it pays maximum at the middle strike if AIFD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIFD IV rank near 19.58% 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 AIFD at 33.20%. As a Financial Services name, AIFD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIFD-specific events.
AIFD 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. AIFD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIFD alongside the broader basket even when AIFD-specific fundamentals are unchanged. Always rebuild the position from current AIFD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIFD?
- A butterfly on AIFD is the butterfly strategy applied to AIFD (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 AIFD etf trading near $50.70, the strikes shown on this page are snapped to the nearest listed AIFD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIFD 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 AIFD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.20%), the computed maximum profit is $289.08 per contract and the computed maximum loss is -$205.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIFD butterfly?
- The breakeven for the AIFD butterfly priced on this page is roughly $52.95 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 AIFD market-implied 1-standard-deviation expected move is approximately 9.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIFD?
- Butterflies on AIFD are pinning bets - traders use them when they expect AIFD 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 AIFD implied volatility affect this butterfly?
- AIFD ATM IV is at 33.20% with IV rank near 19.58%, 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.