AMZZ Butterfly Strategy
AMZZ (GraniteShares 2x Long AMZN Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the common stock of Amazon, (NASDAQ: AMZN) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide 2 times the cumulative return of AMZN for periods greater than a day.
AMZZ (GraniteShares 2x Long AMZN Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $59.9M, a beta of 3.61 versus the broader market, a 52-week range of 22.21-43.11, average daily share volume of 249K, a public-listing history dating back to 2024. These structural characteristics shape how AMZZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.61 indicates AMZZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on AMZZ?
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 AMZZ snapshot
As of May 15, 2026, spot at $38.55, ATM IV 60.00%, IV rank 22.15%, expected move 17.20%. The butterfly on AMZZ 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 AMZZ specifically: AMZZ IV at 60.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMZZ butterfly, with a market-implied 1-standard-deviation move of approximately 17.20% (roughly $6.63 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 AMZZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMZZ should anchor to the underlying notional of $38.55 per share and to the trader's directional view on AMZZ etf.
AMZZ butterfly setup
The AMZZ 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 AMZZ near $38.55, 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 AMZZ 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 AMZZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $3.48 |
| Sell 2 | Call | $39.00 | $2.58 |
| Buy 1 | Call | $40.00 | $2.13 |
AMZZ butterfly risk and reward
- Net Premium / Debit
- -$45.00
- Max Profit (per contract)
- $141.39
- Max Loss (per contract)
- -$45.00
- Breakeven(s)
- $37.45
- Risk / Reward Ratio
- 3.142
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.
AMZZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMZZ. 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% | -$45.00 |
| $8.53 | -77.9% | -$45.00 |
| $17.06 | -55.8% | -$45.00 |
| $25.58 | -33.7% | -$45.00 |
| $34.10 | -11.5% | -$45.00 |
| $42.62 | +10.6% | +$55.00 |
| $51.15 | +32.7% | +$55.00 |
| $59.67 | +54.8% | +$55.00 |
| $68.19 | +76.9% | +$55.00 |
| $76.71 | +99.0% | +$55.00 |
When traders use butterfly on AMZZ
Butterflies on AMZZ are pinning bets - traders use them when they expect AMZZ 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.
AMZZ thesis for this butterfly
The market-implied 1-standard-deviation range for AMZZ extends from approximately $31.92 on the downside to $45.18 on the upside. A AMZZ long call butterfly is a pinning play: it pays maximum at the middle strike if AMZZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMZZ IV rank near 22.15% 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 AMZZ at 60.00%. As a Financial Services name, AMZZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMZZ-specific events.
AMZZ 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. AMZZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMZZ alongside the broader basket even when AMZZ-specific fundamentals are unchanged. Always rebuild the position from current AMZZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMZZ?
- A butterfly on AMZZ is the butterfly strategy applied to AMZZ (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 AMZZ etf trading near $38.55, the strikes shown on this page are snapped to the nearest listed AMZZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMZZ 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 AMZZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.00%), the computed maximum profit is $141.39 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMZZ butterfly?
- The breakeven for the AMZZ butterfly priced on this page is roughly $37.45 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 AMZZ market-implied 1-standard-deviation expected move is approximately 17.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMZZ?
- Butterflies on AMZZ are pinning bets - traders use them when they expect AMZZ 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 AMZZ implied volatility affect this butterfly?
- AMZZ ATM IV is at 60.00% with IV rank near 22.15%, 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.