ABCB Butterfly Strategy
ABCB (Ameris Bancorp), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers primarily in Georgia, Alabama, Florida, North Carolina, and South Carolina. The company operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. It offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. The company also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and small unsecured personal credit lines. In addition, it originates, administers, and services commercial insurance premium loans and small business administration loans. The company operates 165 full service domestic banking offices and 35 mortgage and loan production offices.
ABCB (Ameris Bancorp) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.58B, a trailing P/E of 12.92, a beta of 0.94 versus the broader market, a 52-week range of 59.54-87.99, average daily share volume of 554K, a public-listing history dating back to 1994, approximately 2K full-time employees. These structural characteristics shape how ABCB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places ABCB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ABCB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ABCB?
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 ABCB snapshot
As of May 15, 2026, spot at $82.53, ATM IV 45.40%, IV rank 9.89%, expected move 13.02%. The butterfly on ABCB 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 ABCB specifically: ABCB IV at 45.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a ABCB butterfly, with a market-implied 1-standard-deviation move of approximately 13.02% (roughly $10.74 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 ABCB expiries trade a higher absolute premium for lower per-day decay. Position sizing on ABCB should anchor to the underlying notional of $82.53 per share and to the trader's directional view on ABCB stock.
ABCB butterfly setup
The ABCB 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 ABCB near $82.53, the first option leg uses a $78.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ABCB 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 ABCB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $78.40 | N/A |
| Sell 2 | Call | $82.53 | N/A |
| Buy 1 | Call | $86.66 | N/A |
ABCB 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.
ABCB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ABCB. 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 ABCB
Butterflies on ABCB are pinning bets - traders use them when they expect ABCB 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.
ABCB thesis for this butterfly
The market-implied 1-standard-deviation range for ABCB extends from approximately $71.79 on the downside to $93.27 on the upside. A ABCB long call butterfly is a pinning play: it pays maximum at the middle strike if ABCB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ABCB IV rank near 9.89% 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 ABCB at 45.40%. As a Financial Services name, ABCB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ABCB-specific events.
ABCB 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. ABCB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ABCB alongside the broader basket even when ABCB-specific fundamentals are unchanged. Always rebuild the position from current ABCB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ABCB?
- A butterfly on ABCB is the butterfly strategy applied to ABCB (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 ABCB stock trading near $82.53, the strikes shown on this page are snapped to the nearest listed ABCB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ABCB 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 ABCB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 45.40%), 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 ABCB butterfly?
- The breakeven for the ABCB 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 ABCB market-implied 1-standard-deviation expected move is approximately 13.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ABCB?
- Butterflies on ABCB are pinning bets - traders use them when they expect ABCB 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 ABCB implied volatility affect this butterfly?
- ABCB ATM IV is at 45.40% with IV rank near 9.89%, 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.