How are BAGY 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 BAGY butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is $97.78 per contract and the computed maximum loss is $3.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BAGY butterfly?

The breakeven for the BAGY 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. The BAGY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BAGY implied volatility affect this butterfly?

BAGY ATM IV is at 44.30% with IV rank near 34.72%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

BAGY Butterfly Strategy

BAGY (Amplify Bitcoin Max Income Covered Call ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on CBOE.

The Amplify Bitcoin Max Income Covered Call ETF (BAGY) is designed to generate significant current income. It achieves this by implementing a covered call strategy, which is directly linked to the price performance of Bitcoin. The fund targets an annualized option premium return of 30-60%, while also offering some potential for capital appreciation. BAGY accomplishes this by regularly writing weekly options, transforming the inherent volatility of Bitcoin's price into profitable income opportunities.

BAGY (Amplify Bitcoin Max Income Covered Call ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $8.3M, a beta of 1.39 versus the broader market, a 52-week range of 18.165-42.5, average daily share volume of 4K, a public-listing history dating back to 2025. These structural characteristics shape how BAGY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.39 indicates BAGY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BAGY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on BAGY?

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.

BAGY snapshot

As of November 13, 2026, spot at $18.40, ATM IV 44.30%, IV rank 34.72%, expected move 12.70%. The butterfly on BAGY 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 35-day expiry.

Why this butterfly structure on BAGY specifically: BAGY IV at 44.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 12.70% (roughly $2.34 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 BAGY expiries trade a higher absolute premium for lower per-day decay. Position sizing on BAGY should anchor to the underlying notional of $18.40 per share and to the trader's directional view on BAGY etf.

BAGY butterfly setup

The BAGY 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 BAGY at $18.40 on that close, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BAGY 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 BAGY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.00	$1.48
Sell 2	Call	$18.00	$1.06
Buy 1	Call	$19.00	$0.61

BAGY butterfly risk and reward

Net Premium / Debit: +$3.50
Max Profit (per contract): $97.78
Max Loss (per contract): $3.50
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 27.938

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.

BAGY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BAGY. 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	-99.9%	+$3.50
$4.08	-77.8%	+$3.50
$8.14	-55.7%	+$3.50
$12.21	-33.6%	+$3.50
$16.28	-11.5%	+$3.50
$20.35	+10.6%	+$3.50
$24.41	+32.7%	+$3.50
$28.48	+54.8%	+$3.50
$32.55	+76.9%	+$3.50
$36.62	+99.0%	+$3.50

When traders use butterfly on BAGY

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

BAGY thesis for this butterfly

The market-implied 1-standard-deviation range for BAGY extends from approximately $16.06 on the downside to $20.74 on the upside. A BAGY long call butterfly is a pinning play: it pays maximum at the middle strike if BAGY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BAGY IV rank near 34.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BAGY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BAGY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BAGY-specific events.

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

Frequently asked questions

What is a butterfly on BAGY?: A butterfly on BAGY is the butterfly strategy applied to BAGY (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 BAGY etf at $18.40 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed BAGY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BAGY 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 BAGY butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is $97.78 per contract and the computed maximum loss is $3.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BAGY butterfly?: The breakeven for the BAGY 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. The BAGY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BAGY?: Butterflies on BAGY are pinning bets - traders use them when they expect BAGY 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 BAGY implied volatility affect this butterfly?: BAGY ATM IV is at 44.30% with IV rank near 34.72%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.