ACHR Butterfly Strategy
ACHR (Archer Aviation Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Archer Aviation Inc., an urban air mobility company, engages in designs, develops, manufactures, and operates electric vertical takeoff and landing aircrafts to carry passengers. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. Archer Aviation Inc. was incorporated in 2018 and is headquartered in Palo Alto, California.
ACHR (Archer Aviation Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $4.95B, a beta of 3.13 versus the broader market, a 52-week range of 4.8-14.62, average daily share volume of 30.9M, a public-listing history dating back to 2020, approximately 774 full-time employees. These structural characteristics shape how ACHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.13 indicates ACHR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on ACHR?
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 ACHR snapshot
As of May 15, 2026, spot at $6.08, ATM IV 76.64%, IV rank 27.00%, expected move 21.97%. The butterfly on ACHR 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 ACHR specifically: ACHR IV at 76.64% is on the cheap side of its 1-year range, which favors premium-buying structures like a ACHR butterfly, with a market-implied 1-standard-deviation move of approximately 21.97% (roughly $1.34 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 ACHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACHR should anchor to the underlying notional of $6.08 per share and to the trader's directional view on ACHR stock.
ACHR butterfly setup
The ACHR 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 ACHR near $6.08, the first option leg uses a $5.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACHR 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 ACHR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.78 | N/A |
| Sell 2 | Call | $6.08 | N/A |
| Buy 1 | Call | $6.38 | N/A |
ACHR 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.
ACHR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ACHR. 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 ACHR
Butterflies on ACHR are pinning bets - traders use them when they expect ACHR 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.
ACHR thesis for this butterfly
The market-implied 1-standard-deviation range for ACHR extends from approximately $4.74 on the downside to $7.42 on the upside. A ACHR long call butterfly is a pinning play: it pays maximum at the middle strike if ACHR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ACHR IV rank near 27.00% 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 ACHR at 76.64%. As a Industrials name, ACHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACHR-specific events.
ACHR 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. ACHR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACHR alongside the broader basket even when ACHR-specific fundamentals are unchanged. Always rebuild the position from current ACHR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ACHR?
- A butterfly on ACHR is the butterfly strategy applied to ACHR (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 ACHR stock trading near $6.08, the strikes shown on this page are snapped to the nearest listed ACHR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACHR 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 ACHR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 76.64%), 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 ACHR butterfly?
- The breakeven for the ACHR 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 ACHR market-implied 1-standard-deviation expected move is approximately 21.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ACHR?
- Butterflies on ACHR are pinning bets - traders use them when they expect ACHR 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 ACHR implied volatility affect this butterfly?
- ACHR ATM IV is at 76.64% with IV rank near 27.00%, 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.