ADIG Butterfly Strategy
ADIG (ADI Global Distribution Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.
ADI Global Distribution, Inc. engages in the distribution of third-party low-voltage products. Its products include security and audio-visual solutions. The company was founded by Maurice Coleman in 1929 and is headquartered in Huntington, NY.
ADIG (ADI Global Distribution Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $1.35B, a trailing P/E of 296.86, a beta of 0.00 versus the broader market, a 52-week range of 19.53-30.99, average daily share volume of 1.0M, a public-listing history dating back to 2026, approximately 4K full-time employees. These structural characteristics shape how ADIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates ADIG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 296.86 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on ADIG?
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.
ADIG snapshot
As of September 29, 2026, spot at $18.80, ATM IV 79.50%, expected move 22.79%. The butterfly on ADIG below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this butterfly structure on ADIG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ADIG is inferred from ATM IV at 79.50% alone, with a market-implied 1-standard-deviation move of approximately 22.79% (roughly $4.28 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADIG should anchor to the underlying notional of $18.80 per share and to the trader's directional view on ADIG stock.
ADIG butterfly setup
The ADIG 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 ADIG at $18.80 on that close, the first option leg uses a $17.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADIG chain at a 17-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 ADIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.86 | N/A |
| Sell 2 | Call | $18.80 | N/A |
| Buy 1 | Call | $19.74 | N/A |
ADIG 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.
ADIG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ADIG. 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 ADIG
Butterflies on ADIG are pinning bets - traders use them when they expect ADIG 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.
ADIG thesis for this butterfly
The market-implied 1-standard-deviation range for ADIG extends from approximately $14.52 on the downside to $23.08 on the upside. A ADIG long call butterfly is a pinning play: it pays maximum at the middle strike if ADIG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Industrials name, ADIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADIG-specific events.
ADIG 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. ADIG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADIG alongside the broader basket even when ADIG-specific fundamentals are unchanged. Always rebuild the position from current ADIG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ADIG?
- A butterfly on ADIG is the butterfly strategy applied to ADIG (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 ADIG stock at $18.80 on the most recent close, the strikes shown on this page are snapped to the nearest listed ADIG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ADIG 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 ADIG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 79.50%), 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 ADIG butterfly?
- The breakeven for the ADIG butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 ADIG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ADIG?
- Butterflies on ADIG are pinning bets - traders use them when they expect ADIG 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 ADIG implied volatility affect this butterfly?
- Current ADIG ATM IV is 79.50%; IV rank context is unavailable in the current snapshot.