IBUY Butterfly Strategy
IBUY (Amplify Online Retail ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Amplify Online Retail ETF (IBUY) strives to mirror the price movements of the EQM Online Retail Index, prior to the deduction of fees and operational expenses. This benchmark index is made up of a broad, international assortment of publicly traded companies that generate a substantial portion of their income from the digital retail industry, encompassing traditional e-commerce, online travel services, virtual marketplaces, and integrated multi-channel retail approaches.
IBUY (Amplify Online Retail ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $109.8M, a beta of 1.45 versus the broader market, a 52-week range of 58.08-79.055, average daily share volume of 13K, a public-listing history dating back to 2016. These structural characteristics shape how IBUY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates IBUY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. IBUY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on IBUY?
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.
IBUY snapshot
As of August 14, 2026, spot at $74.31, ATM IV 30.10%, IV rank 12.25%, expected move 8.63%. The butterfly on IBUY 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 IBUY specifically: IBUY IV at 30.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a IBUY butterfly, with a market-implied 1-standard-deviation move of approximately 8.63% (roughly $6.41 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 IBUY expiries trade a higher absolute premium for lower per-day decay. Position sizing on IBUY should anchor to the underlying notional of $74.31 per share and to the trader's directional view on IBUY etf.
IBUY butterfly setup
The IBUY 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 IBUY at $74.31 on that close, the first option leg uses a $71.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IBUY 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 IBUY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $71.00 | $4.03 |
| Sell 2 | Call | $74.00 | $2.43 |
| Buy 1 | Call | $78.00 | $1.44 |
IBUY butterfly risk and reward
- Net Premium / Debit
- -$61.50
- Max Profit (per contract)
- $232.66
- Max Loss (per contract)
- -$161.50
- Breakeven(s)
- $71.61, $76.39
- Risk / Reward Ratio
- 1.441
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.
IBUY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IBUY. 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% | -$61.50 |
| $16.44 | -77.9% | -$61.50 |
| $32.87 | -55.8% | -$61.50 |
| $49.30 | -33.7% | -$61.50 |
| $65.73 | -11.6% | -$61.50 |
| $82.16 | +10.6% | -$161.50 |
| $98.59 | +32.7% | -$161.50 |
| $115.01 | +54.8% | -$161.50 |
| $131.44 | +76.9% | -$161.50 |
| $147.87 | +99.0% | -$161.50 |
When traders use butterfly on IBUY
Butterflies on IBUY are pinning bets - traders use them when they expect IBUY 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.
IBUY thesis for this butterfly
The market-implied 1-standard-deviation range for IBUY extends from approximately $67.90 on the downside to $80.72 on the upside. A IBUY long call butterfly is a pinning play: it pays maximum at the middle strike if IBUY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IBUY IV rank near 12.25% 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 IBUY at 30.10%. As a Financial Services name, IBUY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IBUY-specific events.
IBUY 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. IBUY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IBUY alongside the broader basket even when IBUY-specific fundamentals are unchanged. Always rebuild the position from current IBUY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IBUY?
- A butterfly on IBUY is the butterfly strategy applied to IBUY (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 IBUY etf at $74.31 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IBUY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IBUY 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 IBUY butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $232.66 per contract and the computed maximum loss is -$161.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IBUY butterfly?
- The breakeven for the IBUY butterfly priced on this page is roughly $71.61 and $76.39 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 IBUY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IBUY?
- Butterflies on IBUY are pinning bets - traders use them when they expect IBUY 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 IBUY implied volatility affect this butterfly?
- IBUY ATM IV is at 30.10% with IV rank near 12.25%, 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.