How are AEHR 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 AEHR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 120.34%), the computed maximum profit is $590.51 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AEHR butterfly?

The breakeven for the AEHR butterfly priced on this page is roughly $139.25 at expiration, derived from the August 14, 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 AEHR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 34.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AEHR implied volatility affect this butterfly?

AEHR ATM IV is at 120.34% with IV rank near 60.19%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

AEHR Butterfly Strategy

AEHR (Aehr Test Systems), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Aehr Test Systems, founded in 1977 and based in Fremont, California, specializes in the global provision of advanced burn-in and test systems for integrated circuits, encompassing logic, optical, and memory devices. Its extensive product lineup includes the ABTS and FOX-P families of test and burn-in solutions, complemented by specialized components such as the FOX WaferPak Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier, and FOX DiePak Loader. The ABTS system is specifically designed for both production and qualification assessments of packaged parts, covering a range of lower and higher power logic devices, as well as various memory types. For more complex integrated circuits like memories, digital signal processors, microprocessors, microcontrollers, systems-on-a-chip, and integrated optical devices, the FOX-XP and FOX-NP systems facilitate burn-in and functional testing at both the wafer and individual die/module levels. Aehr's FOX-CP system offers a compact, single-wafer solution for verifying the reliability of logic, memory, and photonic devices. A distinguishing offering, the WaferPak Contactor, features an exclusive full-wafer probe card, accommodating wafers up to 300mm, which enables semiconductor manufacturers to conduct comprehensive wafer-level testing and burn-in on Aehr's FOX platforms.

AEHR (Aehr Test Systems) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.22B, a beta of 3.09 versus the broader market, a 52-week range of 16.38-133.35, average daily share volume of 3.0M, a public-listing history dating back to 1997, approximately 138 full-time employees. These structural characteristics shape how AEHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.09 indicates AEHR 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 AEHR?

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.

AEHR snapshot

As of August 14, 2026, spot at $133.32, ATM IV 120.34%, IV rank 60.19%, expected move 34.50%. The butterfly on AEHR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this butterfly structure on AEHR specifically: AEHR IV at 120.34% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 34.50% (roughly $46.00 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AEHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEHR should anchor to the underlying notional of $133.32 per share and to the trader's directional view on AEHR stock.

AEHR butterfly setup

The AEHR butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AEHR at $133.32 on that close, the first option leg uses a $127.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEHR chain at a 28-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 AEHR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$127.00	$20.10
Sell 2	Call	$133.00	$17.70
Buy 1	Call	$140.00	$15.05

AEHR butterfly risk and reward

Net Premium / Debit: +$25.00
Max Profit (per contract): $590.51
Max Loss (per contract): -$75.00
Breakeven(s): $139.25
Risk / Reward Ratio: 7.873

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.

AEHR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AEHR. 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	-100.0%	+$25.00
$29.49	-77.9%	+$25.00
$58.96	-55.8%	+$25.00
$88.44	-33.7%	+$25.00
$117.92	-11.6%	+$25.00
$147.39	+10.6%	-$75.00
$176.87	+32.7%	-$75.00
$206.35	+54.8%	-$75.00
$235.82	+76.9%	-$75.00
$265.30	+99.0%	-$75.00

When traders use butterfly on AEHR

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

AEHR thesis for this butterfly

The market-implied 1-standard-deviation range for AEHR extends from approximately $87.32 on the downside to $179.32 on the upside. A AEHR long call butterfly is a pinning play: it pays maximum at the middle strike if AEHR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AEHR IV rank near 60.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AEHR should anchor more to the directional view and the expected-move geometry. As a Technology name, AEHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEHR-specific events.

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

Frequently asked questions

What is a butterfly on AEHR?: A butterfly on AEHR is the butterfly strategy applied to AEHR (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 AEHR stock at $133.32 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AEHR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AEHR 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 AEHR butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 120.34%), the computed maximum profit is $590.51 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AEHR butterfly?: The breakeven for the AEHR butterfly priced on this page is roughly $139.25 at expiration, derived from the August 14, 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 AEHR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 34.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AEHR?: Butterflies on AEHR are pinning bets - traders use them when they expect AEHR 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 AEHR implied volatility affect this butterfly?: AEHR ATM IV is at 120.34% with IV rank near 60.19%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.