QAI Butterfly Strategy
QAI (NYLI Hedge Multi-Strategy Tracker ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
NYLI Hedge Multi-Strategy Tracker ETF (QAI) seeks investment results that track, before fees and expenses, the price and yield performance of NYLI Hedge Multi-Strategy Index. NYLI Hedge Multi-Strategy Index attempts to replicate the risk-return characteristics of hedge funds generally. The Fund does not invest in hedge funds, and the index does not include hedge fund components. The Fund is not suitable for all investors.
QAI (NYLI Hedge Multi-Strategy Tracker ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $773.5M, a beta of 0.38 versus the broader market, a 52-week range of 31.62-36.3, average daily share volume of 142K, a public-listing history dating back to 2009. These structural characteristics shape how QAI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates QAI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. QAI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on QAI?
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 QAI snapshot
As of May 15, 2026, spot at $35.93, ATM IV 33.70%, IV rank 19.00%, expected move 9.66%. The butterfly on QAI 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 QAI specifically: QAI IV at 33.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a QAI butterfly, with a market-implied 1-standard-deviation move of approximately 9.66% (roughly $3.47 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 QAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on QAI should anchor to the underlying notional of $35.93 per share and to the trader's directional view on QAI etf.
QAI butterfly setup
The QAI 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 QAI near $35.93, the first option leg uses a $34.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QAI 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 QAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $34.13 | N/A |
| Sell 2 | Call | $35.93 | N/A |
| Buy 1 | Call | $37.73 | N/A |
QAI butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
QAI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on QAI. 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.
When traders use butterfly on QAI
Butterflies on QAI are pinning bets - traders use them when they expect QAI 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.
QAI thesis for this butterfly
The market-implied 1-standard-deviation range for QAI extends from approximately $32.46 on the downside to $39.40 on the upside. A QAI long call butterfly is a pinning play: it pays maximum at the middle strike if QAI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QAI IV rank near 19.00% 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 QAI at 33.70%. As a Financial Services name, QAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QAI-specific events.
QAI 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. QAI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QAI alongside the broader basket even when QAI-specific fundamentals are unchanged. Always rebuild the position from current QAI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on QAI?
- A butterfly on QAI is the butterfly strategy applied to QAI (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 QAI etf trading near $35.93, the strikes shown on this page are snapped to the nearest listed QAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QAI 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 QAI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QAI butterfly?
- The breakeven for the QAI 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 QAI market-implied 1-standard-deviation expected move is approximately 9.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on QAI?
- Butterflies on QAI are pinning bets - traders use them when they expect QAI 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 QAI implied volatility affect this butterfly?
- QAI ATM IV is at 33.70% with IV rank near 19.00%, 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.