AMZP Butterfly Strategy
AMZP (Kurv Yield Premium Strategy Amazon (AMZN) ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Kurv Yield Premium Strategy Amazon (AMZN) ETF seeks to provide current income while maintaining the opportunity for exposure to the share price of the common stock of Amazon.com, Inc., subject to a limit on potential investment gains.
AMZP (Kurv Yield Premium Strategy Amazon (AMZN) ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.2M, a beta of 1.56 versus the broader market, a 52-week range of 22.11-31.77, average daily share volume of 17K, a public-listing history dating back to 2023. These structural characteristics shape how AMZP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.56 indicates AMZP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AMZP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AMZP?
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 AMZP snapshot
As of May 15, 2026, spot at $29.32, ATM IV 22.70%, IV rank 7.59%, expected move 6.51%. The butterfly on AMZP 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 154-day expiry.
Why this butterfly structure on AMZP specifically: AMZP IV at 22.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMZP butterfly, with a market-implied 1-standard-deviation move of approximately 6.51% (roughly $1.91 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMZP expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMZP should anchor to the underlying notional of $29.32 per share and to the trader's directional view on AMZP etf.
AMZP butterfly setup
The AMZP 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 AMZP near $29.32, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMZP chain at a 154-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 AMZP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.00 | $2.42 |
| Sell 2 | Call | $29.00 | $1.97 |
| Buy 1 | Call | $31.00 | $1.29 |
AMZP butterfly risk and reward
- Net Premium / Debit
- +$23.00
- Max Profit (per contract)
- $111.31
- Max Loss (per contract)
- -$77.00
- Breakeven(s)
- $30.23
- Risk / Reward Ratio
- 1.446
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.
AMZP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMZP. 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% | +$23.00 |
| $6.49 | -77.9% | +$23.00 |
| $12.97 | -55.8% | +$23.00 |
| $19.46 | -33.6% | +$23.00 |
| $25.94 | -11.5% | +$23.00 |
| $32.42 | +10.6% | -$77.00 |
| $38.90 | +32.7% | -$77.00 |
| $45.38 | +54.8% | -$77.00 |
| $51.86 | +76.9% | -$77.00 |
| $58.35 | +99.0% | -$77.00 |
When traders use butterfly on AMZP
Butterflies on AMZP are pinning bets - traders use them when they expect AMZP 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.
AMZP thesis for this butterfly
The market-implied 1-standard-deviation range for AMZP extends from approximately $27.41 on the downside to $31.23 on the upside. A AMZP long call butterfly is a pinning play: it pays maximum at the middle strike if AMZP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMZP IV rank near 7.59% 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 AMZP at 22.70%. As a Financial Services name, AMZP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMZP-specific events.
AMZP 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. AMZP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMZP alongside the broader basket even when AMZP-specific fundamentals are unchanged. Always rebuild the position from current AMZP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMZP?
- A butterfly on AMZP is the butterfly strategy applied to AMZP (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 AMZP etf trading near $29.32, the strikes shown on this page are snapped to the nearest listed AMZP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMZP 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 AMZP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.70%), the computed maximum profit is $111.31 per contract and the computed maximum loss is -$77.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMZP butterfly?
- The breakeven for the AMZP butterfly priced on this page is roughly $30.23 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 AMZP market-implied 1-standard-deviation expected move is approximately 6.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMZP?
- Butterflies on AMZP are pinning bets - traders use them when they expect AMZP 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 AMZP implied volatility affect this butterfly?
- AMZP ATM IV is at 22.70% with IV rank near 7.59%, 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.