MJ Butterfly Strategy
MJ (Amplify Alternative Harvest ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Amplify Alternative Harvest ETF (MJ) seeks investment results that generally correlate (before fees and expenses) to the total return performance of the Prime Alternative Harvest Index. MJ tracks a portfolio of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives.
MJ (Amplify Alternative Harvest ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $110.4M, a beta of 0.85 versus the broader market, a 52-week range of 16.5-46.75, average daily share volume of 43K, a public-listing history dating back to 2015. These structural characteristics shape how MJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places MJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MJ?
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 MJ snapshot
As of May 15, 2026, spot at $25.05, ATM IV 64.00%, IV rank 38.13%, expected move 18.35%. The butterfly on MJ 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 MJ specifically: MJ IV at 64.00% 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 18.35% (roughly $4.60 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 MJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on MJ should anchor to the underlying notional of $25.05 per share and to the trader's directional view on MJ etf.
MJ butterfly setup
The MJ 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 MJ near $25.05, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MJ 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 MJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.00 | $2.90 |
| Sell 2 | Call | $25.00 | $2.43 |
| Buy 1 | Call | $26.00 | $1.90 |
MJ butterfly risk and reward
- Net Premium / Debit
- +$5.00
- Max Profit (per contract)
- $97.91
- Max Loss (per contract)
- $5.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 19.583
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.
MJ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MJ. 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% | +$5.00 |
| $5.55 | -77.9% | +$5.00 |
| $11.09 | -55.7% | +$5.00 |
| $16.62 | -33.6% | +$5.00 |
| $22.16 | -11.5% | +$5.00 |
| $27.70 | +10.6% | +$5.00 |
| $33.24 | +32.7% | +$5.00 |
| $38.77 | +54.8% | +$5.00 |
| $44.31 | +76.9% | +$5.00 |
| $49.85 | +99.0% | +$5.00 |
When traders use butterfly on MJ
Butterflies on MJ are pinning bets - traders use them when they expect MJ 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.
MJ thesis for this butterfly
The market-implied 1-standard-deviation range for MJ extends from approximately $20.45 on the downside to $29.65 on the upside. A MJ long call butterfly is a pinning play: it pays maximum at the middle strike if MJ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MJ IV rank near 38.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MJ-specific events.
MJ 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. MJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MJ alongside the broader basket even when MJ-specific fundamentals are unchanged. Always rebuild the position from current MJ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MJ?
- A butterfly on MJ is the butterfly strategy applied to MJ (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 MJ etf trading near $25.05, the strikes shown on this page are snapped to the nearest listed MJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MJ 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 MJ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 64.00%), the computed maximum profit is $97.91 per contract and the computed maximum loss is $5.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MJ butterfly?
- The breakeven for the MJ butterfly priced on this page is no defined breakeven on the modeled curve 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 MJ market-implied 1-standard-deviation expected move is approximately 18.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MJ?
- Butterflies on MJ are pinning bets - traders use them when they expect MJ 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 MJ implied volatility affect this butterfly?
- MJ ATM IV is at 64.00% with IV rank near 38.13%, 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.