CNBS Butterfly Strategy
CNBS (Amplify Seymour Cannabis ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
CNBS is an actively managed exchange-traded fund designed to offer broad U.S. market access to the cannabis sector. It invests across the diverse landscape of this industry, encompassing companies involved in cannabis cultivation (plants), essential operational support, and various ancillary businesses. The primary aim of CNBS is to generate capital appreciation for its investors.
CNBS (Amplify Seymour Cannabis ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $90.9M, a beta of 0.92 versus the broader market, a 52-week range of 18.43-43.94, average daily share volume of 11K, a public-listing history dating back to 2019. These structural characteristics shape how CNBS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places CNBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CNBS?
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.
CNBS snapshot
As of August 14, 2026, spot at $26.79, ATM IV 50.60%, IV rank 11.14%, expected move 14.51%. The butterfly on CNBS 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 7-day expiry.
Why this butterfly structure on CNBS specifically: CNBS IV at 50.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CNBS butterfly, with a market-implied 1-standard-deviation move of approximately 14.51% (roughly $3.89 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CNBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNBS should anchor to the underlying notional of $26.79 per share and to the trader's directional view on CNBS etf.
CNBS butterfly setup
The CNBS 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 CNBS at $26.79 on that close, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNBS 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 CNBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.00 | $1.83 |
| Sell 2 | Call | $27.00 | $0.98 |
| Buy 1 | Call | $28.00 | $0.60 |
CNBS butterfly risk and reward
- Net Premium / Debit
- -$46.50
- Max Profit (per contract)
- $146.46
- Max Loss (per contract)
- -$46.50
- Breakeven(s)
- $25.47
- Risk / Reward Ratio
- 3.150
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.
CNBS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CNBS. 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% | -$46.50 |
| $5.93 | -77.9% | -$46.50 |
| $11.85 | -55.7% | -$46.50 |
| $17.78 | -33.6% | -$46.50 |
| $23.70 | -11.5% | -$46.50 |
| $29.62 | +10.6% | +$53.50 |
| $35.54 | +32.7% | +$53.50 |
| $41.47 | +54.8% | +$53.50 |
| $47.39 | +76.9% | +$53.50 |
| $53.31 | +99.0% | +$53.50 |
When traders use butterfly on CNBS
Butterflies on CNBS are pinning bets - traders use them when they expect CNBS 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.
CNBS thesis for this butterfly
The market-implied 1-standard-deviation range for CNBS extends from approximately $22.90 on the downside to $30.68 on the upside. A CNBS long call butterfly is a pinning play: it pays maximum at the middle strike if CNBS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CNBS IV rank near 11.14% 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 CNBS at 50.60%. As a Financial Services name, CNBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNBS-specific events.
CNBS 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. CNBS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNBS alongside the broader basket even when CNBS-specific fundamentals are unchanged. Always rebuild the position from current CNBS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CNBS?
- A butterfly on CNBS is the butterfly strategy applied to CNBS (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 CNBS etf at $26.79 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CNBS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CNBS 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 CNBS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.60%), the computed maximum profit is $146.46 per contract and the computed maximum loss is -$46.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CNBS butterfly?
- The breakeven for the CNBS butterfly priced on this page is roughly $25.47 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 CNBS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CNBS?
- Butterflies on CNBS are pinning bets - traders use them when they expect CNBS 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 CNBS implied volatility affect this butterfly?
- CNBS ATM IV is at 50.60% with IV rank near 11.14%, 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.