AAMI Butterfly Strategy
AAMI (Acadian Asset Management), in the Financial Services sector, (Asset Management industry), listed on NYSE.
Acadian Asset Management, Inc. is a holding company, which engages in the provision of asset management services. It operates through the Quant and Solutions segment. The Quant and Solutions segment involves leveraging data and technology in a computational, factor-based investment process across a range of asset classes and geographies, including Global, non-U.S., emerging markets, and managed volatility equities, as well as multi-asset products. The company was founded in 1980 and is headquartered in Boston, MA.
AAMI (Acadian Asset Management) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.50B, a trailing P/E of 29.77, a beta of 1.33 versus the broader market, a 52-week range of 28.98-73.1, average daily share volume of 311K, a public-listing history dating back to 2014, approximately 383 full-time employees. These structural characteristics shape how AAMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates AAMI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AAMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AAMI?
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 AAMI snapshot
As of May 15, 2026, spot at $68.63, ATM IV 35.40%, IV rank 14.26%, expected move 10.15%. The butterfly on AAMI 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 AAMI specifically: AAMI IV at 35.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a AAMI butterfly, with a market-implied 1-standard-deviation move of approximately 10.15% (roughly $6.97 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 AAMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAMI should anchor to the underlying notional of $68.63 per share and to the trader's directional view on AAMI stock.
AAMI butterfly setup
The AAMI 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 AAMI near $68.63, the first option leg uses a $65.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AAMI 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 AAMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $65.20 | N/A |
| Sell 2 | Call | $68.63 | N/A |
| Buy 1 | Call | $72.06 | N/A |
AAMI 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.
AAMI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AAMI. 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 AAMI
Butterflies on AAMI are pinning bets - traders use them when they expect AAMI 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.
AAMI thesis for this butterfly
The market-implied 1-standard-deviation range for AAMI extends from approximately $61.66 on the downside to $75.60 on the upside. A AAMI long call butterfly is a pinning play: it pays maximum at the middle strike if AAMI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AAMI IV rank near 14.26% 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 AAMI at 35.40%. As a Financial Services name, AAMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAMI-specific events.
AAMI 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. AAMI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AAMI alongside the broader basket even when AAMI-specific fundamentals are unchanged. Always rebuild the position from current AAMI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AAMI?
- A butterfly on AAMI is the butterfly strategy applied to AAMI (stock). 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 AAMI stock trading near $68.63, the strikes shown on this page are snapped to the nearest listed AAMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AAMI 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 AAMI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.40%), 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 AAMI butterfly?
- The breakeven for the AAMI 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 AAMI market-implied 1-standard-deviation expected move is approximately 10.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AAMI?
- Butterflies on AAMI are pinning bets - traders use them when they expect AAMI 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 AAMI implied volatility affect this butterfly?
- AAMI ATM IV is at 35.40% with IV rank near 14.26%, 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.