ALTL Butterfly Strategy
ALTL (Pacer Lunt Large Cap Alternator ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This Exchange Traded Fund (ETF) targets large-capitalization companies, utilizing a specific strategy to mirror the performance of an underlying index. This index periodically shifts its holdings, rotating investments between stocks from the S&P 500 Index that exhibit low volatility and those characterized by high beta.
ALTL (Pacer Lunt Large Cap Alternator ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $89.1M, a beta of 0.81 versus the broader market, a 52-week range of 38.135-51.77, average daily share volume of 8K, a public-listing history dating back to 2020. These structural characteristics shape how ALTL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places ALTL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ALTL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ALTL?
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.
ALTL snapshot
As of November 13, 2026, spot at $39.00. The butterfly on ALTL below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this butterfly structure on ALTL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ALTL is inferred from ATM IV alone. The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALTL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALTL should anchor to the underlying notional of $39.00 per share and to the trader's directional view on ALTL etf.
ALTL butterfly setup
The ALTL butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ALTL at $39.00 on that close, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALTL chain at a 7-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 ALTL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $2.15 |
| Sell 2 | Call | $39.00 | $1.42 |
| Buy 1 | Call | $41.00 | $0.67 |
ALTL butterfly risk and reward
- Net Premium / Debit
- +$2.00
- Max Profit (per contract)
- $182.90
- Max Loss (per contract)
- $2.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 91.452
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.
ALTL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ALTL. 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% | +$2.00 |
| $8.63 | -77.9% | +$2.00 |
| $17.25 | -55.8% | +$2.00 |
| $25.88 | -33.7% | +$2.00 |
| $34.50 | -11.5% | +$2.00 |
| $43.12 | +10.6% | +$2.00 |
| $51.74 | +32.7% | +$2.00 |
| $60.36 | +54.8% | +$2.00 |
| $68.99 | +76.9% | +$2.00 |
| $77.61 | +99.0% | +$2.00 |
When traders use butterfly on ALTL
Butterflies on ALTL are pinning bets - traders use them when they expect ALTL 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.
ALTL thesis for this butterfly
A ALTL long call butterfly is a pinning play: it pays maximum at the middle strike if ALTL 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, ALTL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALTL-specific events.
ALTL 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. ALTL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALTL alongside the broader basket even when ALTL-specific fundamentals are unchanged. Always rebuild the position from current ALTL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ALTL?
- A butterfly on ALTL is the butterfly strategy applied to ALTL (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 ALTL etf at $39.00 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed ALTL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALTL 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 ALTL butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $182.90 per contract and the computed maximum loss is $2.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALTL butterfly?
- The breakeven for the ALTL butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the November 13, 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.
- When should you consider a butterfly on ALTL?
- Butterflies on ALTL are pinning bets - traders use them when they expect ALTL 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 ALTL implied volatility affect this butterfly?
- Current ALTL ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.