How are AIPO 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 AIPO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $120.96 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIPO butterfly?

The breakeven for the AIPO butterfly priced on this page is roughly $29.70 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 AIPO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIPO implied volatility affect this butterfly?

Current AIPO ATM IV is 37.60%; IV rank context is unavailable in the current snapshot.

AIPO Butterfly Strategy

AIPO (Defiance AI & Power Infrastructure ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on NASDAQ.

This fund aims to capture the performance of a specialized index that tracks U.S.-listed companies instrumental in building and maintaining crucial electrical grid, artificial intelligence (AI), and data infrastructure. This encompasses businesses involved in decentralized energy solutions, traditional electrical utilities, associated construction and component manufacturing, data center management, and the development of AI computing hardware. Ordinarily, the fund allocates a minimum of 80% of its net assets to securities issued by these AI and power infrastructure-focused enterprises. It is categorized as a non-diversified fund.

AIPO (Defiance AI & Power Infrastructure ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $243.7M, a beta of 2.06 versus the broader market, a 52-week range of 19.17-34.79, average daily share volume of 1.2M, a public-listing history dating back to 2025. These structural characteristics shape how AIPO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.06 indicates AIPO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AIPO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AIPO?

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.

AIPO snapshot

As of August 14, 2026, spot at $30.93, ATM IV 37.60%, expected move 10.78%. The butterfly on AIPO 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 AIPO specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AIPO is inferred from ATM IV at 37.60% alone, with a market-implied 1-standard-deviation move of approximately 10.78% (roughly $3.33 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 AIPO expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIPO should anchor to the underlying notional of $30.93 per share and to the trader's directional view on AIPO etf.

AIPO butterfly setup

The AIPO 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 AIPO at $30.93 on that close, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIPO 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 AIPO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$29.00	$2.65
Sell 2	Call	$31.00	$1.55
Buy 1	Call	$32.00	$1.15

AIPO butterfly risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $120.96
Max Loss (per contract): -$70.00
Breakeven(s): $29.70
Risk / Reward Ratio: 1.728

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.

AIPO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AIPO. 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%	-$70.00
$6.85	-77.9%	-$70.00
$13.69	-55.8%	-$70.00
$20.52	-33.6%	-$70.00
$27.36	-11.5%	-$70.00
$34.20	+10.6%	+$30.00
$41.04	+32.7%	+$30.00
$47.87	+54.8%	+$30.00
$54.71	+76.9%	+$30.00
$61.55	+99.0%	+$30.00

When traders use butterfly on AIPO

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

AIPO thesis for this butterfly

The market-implied 1-standard-deviation range for AIPO extends from approximately $27.60 on the downside to $34.26 on the upside. A AIPO long call butterfly is a pinning play: it pays maximum at the middle strike if AIPO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, AIPO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIPO-specific events.

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

Frequently asked questions

What is a butterfly on AIPO?: A butterfly on AIPO is the butterfly strategy applied to AIPO (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 AIPO etf at $30.93 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIPO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AIPO 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 AIPO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $120.96 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIPO butterfly?: The breakeven for the AIPO butterfly priced on this page is roughly $29.70 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 AIPO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AIPO?: Butterflies on AIPO are pinning bets - traders use them when they expect AIPO 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 AIPO implied volatility affect this butterfly?: Current AIPO ATM IV is 37.60%; IV rank context is unavailable in the current snapshot.