AIPI Butterfly Strategy
AIPI (REX AI Equity Premium Income ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The fund, under normal market conditions, invests at least 80% of its net assets (plus any borrowings for investment purposes) in securities comprising the BITA AI Leaders Select Index. It seeks to employ its investment strategy regardless of whether there are periods of adverse market, economic, or other conditions and will not seek to take temporary defensive positions during such periods. The fund is non-diversified.
AIPI (REX AI Equity Premium Income ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $393.7M, a beta of 0.98 versus the broader market, a 52-week range of 32.21-45.08, average daily share volume of 139K, a public-listing history dating back to 2024. These structural characteristics shape how AIPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places AIPI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AIPI?
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 AIPI snapshot
As of May 15, 2026, spot at $37.22, ATM IV 34.60%, IV rank 6.92%, expected move 9.92%. The butterfly on AIPI 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 AIPI specifically: AIPI IV at 34.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIPI butterfly, with a market-implied 1-standard-deviation move of approximately 9.92% (roughly $3.69 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 AIPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIPI should anchor to the underlying notional of $37.22 per share and to the trader's directional view on AIPI etf.
AIPI butterfly setup
The AIPI 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 AIPI near $37.22, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIPI 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 AIPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $2.60 |
| Sell 2 | Call | $37.00 | $1.28 |
| Buy 1 | Call | $39.00 | $0.64 |
AIPI butterfly risk and reward
- Net Premium / Debit
- -$69.00
- Max Profit (per contract)
- $127.20
- Max Loss (per contract)
- -$69.00
- Breakeven(s)
- $35.69, $38.31
- Risk / Reward Ratio
- 1.843
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.
AIPI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIPI. 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% | -$69.00 |
| $8.24 | -77.9% | -$69.00 |
| $16.47 | -55.8% | -$69.00 |
| $24.70 | -33.7% | -$69.00 |
| $32.92 | -11.5% | -$69.00 |
| $41.15 | +10.6% | -$69.00 |
| $49.38 | +32.7% | -$69.00 |
| $57.61 | +54.8% | -$69.00 |
| $65.84 | +76.9% | -$69.00 |
| $74.07 | +99.0% | -$69.00 |
When traders use butterfly on AIPI
Butterflies on AIPI are pinning bets - traders use them when they expect AIPI 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.
AIPI thesis for this butterfly
The market-implied 1-standard-deviation range for AIPI extends from approximately $33.53 on the downside to $40.91 on the upside. A AIPI long call butterfly is a pinning play: it pays maximum at the middle strike if AIPI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIPI IV rank near 6.92% 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 AIPI at 34.60%. As a Financial Services name, AIPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIPI-specific events.
AIPI 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. AIPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIPI alongside the broader basket even when AIPI-specific fundamentals are unchanged. Always rebuild the position from current AIPI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIPI?
- A butterfly on AIPI is the butterfly strategy applied to AIPI (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 AIPI etf trading near $37.22, the strikes shown on this page are snapped to the nearest listed AIPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIPI 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 AIPI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.60%), the computed maximum profit is $127.20 per contract and the computed maximum loss is -$69.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIPI butterfly?
- The breakeven for the AIPI butterfly priced on this page is roughly $35.69 and $38.31 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 AIPI market-implied 1-standard-deviation expected move is approximately 9.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIPI?
- Butterflies on AIPI are pinning bets - traders use them when they expect AIPI 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 AIPI implied volatility affect this butterfly?
- AIPI ATM IV is at 34.60% with IV rank near 6.92%, 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.