MJ Butterfly Strategy
MJ (Amplify Alternative Harvest ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Amplify Alternative Harvest ETF, identified by the ticker MJ, aims to replicate the overall financial performance of the Prime Alternative Harvest Index, before accounting for any associated fees or expenses. The fund accomplishes this by investing in a range of companies within the global cannabis industry, specifically those positioned to capitalize on the growing worldwide trend of legalizing cannabis for both medical and recreational purposes.
MJ (Amplify Alternative Harvest ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $120.8M, a beta of 0.82 versus the broader market, a 52-week range of 21.05-46.75, average daily share volume of 41K, 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 0.82 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.
MJ snapshot
As of August 14, 2026, spot at $25.14, ATM IV 44.50%, IV rank 4.09%, expected move 12.76%. The butterfly on MJ 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 MJ specifically: MJ IV at 44.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a MJ butterfly, with a market-implied 1-standard-deviation move of approximately 12.76% (roughly $3.21 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 MJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on MJ should anchor to the underlying notional of $25.14 per share and to the trader's directional view on MJ etf.
MJ butterfly setup
The MJ 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 MJ at $25.14 on that close, 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 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 MJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.00 | $2.10 |
| Sell 2 | Call | $25.00 | $1.63 |
| Buy 1 | Call | $26.00 | $1.13 |
MJ butterfly risk and reward
- Net Premium / Debit
- +$2.50
- Max Profit (per contract)
- $100.63
- Max Loss (per contract)
- $2.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 40.252
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% | +$2.50 |
| $5.57 | -77.9% | +$2.50 |
| $11.12 | -55.7% | +$2.50 |
| $16.68 | -33.6% | +$2.50 |
| $22.24 | -11.5% | +$2.50 |
| $27.80 | +10.6% | +$2.50 |
| $33.35 | +32.7% | +$2.50 |
| $38.91 | +54.8% | +$2.50 |
| $44.47 | +76.9% | +$2.50 |
| $50.03 | +99.0% | +$2.50 |
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 $21.93 on the downside to $28.35 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 4.09% 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 MJ at 44.50%. 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 at $25.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MJ chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.50%), the computed maximum profit is $100.63 per contract and the computed maximum loss is $2.50 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 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 MJ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.76%; 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 44.50% with IV rank near 4.09%, 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.