How are AAOZ 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 AAOZ butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 166.70%), the computed maximum profit is $86.67 per contract and the computed maximum loss is -$10.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AAOZ butterfly?

The breakeven for the AAOZ butterfly priced on this page is roughly $13.10 and $14.90 at expiration, derived from the September 29, 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 AAOZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AAOZ implied volatility affect this butterfly?

Current AAOZ ATM IV is 166.70%; IV rank context is unavailable in the current snapshot.

AAOZ Butterfly Strategy

AAOZ (Investment Managers Series Trust II - Tradr 2X Short AAOI Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

AAOZ is a short-term tactical tool that aims to deliver -2x the price return, less fees and expenses, for a single day of Applied Optoelectronics, Inc. (NASDAQ: AAOI) stock. AAOI engages in the design and manufacture of optical communications products. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the -2x multiple. Aside from the inverse exposure, the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending and holders are on the positive corresponding side of that trade.

AAOZ (Investment Managers Series Trust II - Tradr 2X Short AAOI Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.9M, a beta of 0.00 versus the broader market, a 52-week range of 6.94-51.05, average daily share volume of 1.7M, a public-listing history dating back to 2026. These structural characteristics shape how AAOZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates AAOZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on AAOZ?

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.

AAOZ snapshot

As of September 29, 2026, spot at $13.82, ATM IV 166.70%, expected move 47.79%. The butterfly on AAOZ below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.

Why this butterfly structure on AAOZ specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AAOZ is inferred from ATM IV at 166.70% alone, with a market-implied 1-standard-deviation move of approximately 47.79% (roughly $6.60 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AAOZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAOZ should anchor to the underlying notional of $13.82 per share and to the trader's directional view on AAOZ stock.

AAOZ butterfly setup

The AAOZ butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AAOZ at $13.82 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AAOZ chain at a 80-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 AAOZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$13.00	$4.55
Sell 2	Call	$14.00	$4.20
Buy 1	Call	$15.00	$3.95

AAOZ butterfly risk and reward

Net Premium / Debit: -$10.00
Max Profit (per contract): $86.67
Max Loss (per contract): -$10.00
Breakeven(s): $13.10, $14.90
Risk / Reward Ratio: 8.667

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.

AAOZ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AAOZ. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$10.00
$3.06	-77.8%	-$10.00
$6.12	-55.7%	-$10.00
$9.17	-33.6%	-$10.00
$12.23	-11.5%	-$10.00
$15.28	+10.6%	-$10.00
$18.34	+32.7%	-$10.00
$21.39	+54.8%	-$10.00
$24.45	+76.9%	-$10.00
$27.50	+99.0%	-$10.00

When traders use butterfly on AAOZ

Butterflies on AAOZ are pinning bets - traders use them when they expect AAOZ 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.

AAOZ thesis for this butterfly

The market-implied 1-standard-deviation range for AAOZ extends from approximately $7.22 on the downside to $20.42 on the upside. A AAOZ long call butterfly is a pinning play: it pays maximum at the middle strike if AAOZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, AAOZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAOZ-specific events.

AAOZ 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. AAOZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AAOZ alongside the broader basket even when AAOZ-specific fundamentals are unchanged. Always rebuild the position from current AAOZ chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on AAOZ?: A butterfly on AAOZ is the butterfly strategy applied to AAOZ (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 AAOZ stock at $13.82 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed AAOZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AAOZ 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 AAOZ butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 166.70%), the computed maximum profit is $86.67 per contract and the computed maximum loss is -$10.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AAOZ butterfly?: The breakeven for the AAOZ butterfly priced on this page is roughly $13.10 and $14.90 at expiration, derived from the September 29, 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 AAOZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AAOZ?: Butterflies on AAOZ are pinning bets - traders use them when they expect AAOZ 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 AAOZ implied volatility affect this butterfly?: Current AAOZ ATM IV is 166.70%; IV rank context is unavailable in the current snapshot.