AMZA Butterfly Strategy
AMZA (InfraCap MLP ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This ETF's objective is to offer investors access to master limited partnerships (MLPs) within the midstream energy sector, with a primary goal of generating significant current income.
AMZA (InfraCap MLP ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $450.6M, a beta of 0.41 versus the broader market, a 52-week range of 38.01-49.8399, average daily share volume of 39K, a public-listing history dating back to 2014. These structural characteristics shape how AMZA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.41 indicates AMZA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AMZA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AMZA?
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.
AMZA snapshot
As of August 14, 2026, spot at $50.32, ATM IV 21.10%, IV rank 2.50%, expected move 6.05%. The butterfly on AMZA 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 AMZA specifically: AMZA IV at 21.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMZA butterfly, with a market-implied 1-standard-deviation move of approximately 6.05% (roughly $3.04 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 AMZA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMZA should anchor to the underlying notional of $50.32 per share and to the trader's directional view on AMZA etf.
AMZA butterfly setup
The AMZA 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 AMZA at $50.32 on that close, 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 AMZA 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 AMZA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $48.00 | $2.35 |
| Sell 2 | Call | $50.00 | $1.10 |
| Buy 1 | Call | $55.00 | $0.07 |
AMZA butterfly risk and reward
- Net Premium / Debit
- -$22.00
- Max Profit (per contract)
- $170.78
- Max Loss (per contract)
- -$322.00
- Breakeven(s)
- $48.22, $51.78
- Risk / Reward Ratio
- 0.530
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.
AMZA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMZA. 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% | -$22.00 |
| $11.13 | -77.9% | -$22.00 |
| $22.26 | -55.8% | -$22.00 |
| $33.38 | -33.7% | -$22.00 |
| $44.51 | -11.5% | -$22.00 |
| $55.63 | +10.6% | -$322.00 |
| $66.76 | +32.7% | -$322.00 |
| $77.88 | +54.8% | -$322.00 |
| $89.01 | +76.9% | -$322.00 |
| $100.13 | +99.0% | -$322.00 |
When traders use butterfly on AMZA
Butterflies on AMZA are pinning bets - traders use them when they expect AMZA 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.
AMZA thesis for this butterfly
The market-implied 1-standard-deviation range for AMZA extends from approximately $47.28 on the downside to $53.36 on the upside. A AMZA long call butterfly is a pinning play: it pays maximum at the middle strike if AMZA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMZA IV rank near 2.50% 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 AMZA at 21.10%. As a Financial Services name, AMZA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMZA-specific events.
AMZA 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. AMZA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMZA alongside the broader basket even when AMZA-specific fundamentals are unchanged. Always rebuild the position from current AMZA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMZA?
- A butterfly on AMZA is the butterfly strategy applied to AMZA (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 AMZA etf at $50.32 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AMZA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AMZA 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 AMZA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 21.10%), the computed maximum profit is $170.78 per contract and the computed maximum loss is -$322.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMZA butterfly?
- The breakeven for the AMZA butterfly priced on this page is roughly $48.22 and $51.78 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 AMZA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMZA?
- Butterflies on AMZA are pinning bets - traders use them when they expect AMZA 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 AMZA implied volatility affect this butterfly?
- AMZA ATM IV is at 21.10% with IV rank near 2.50%, 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.