AEIS Butterfly Strategy
AEIS (Advanced Energy Industries, Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
Advanced Energy Industries, Inc. designs, manufactures, sells, and supports precision power conversion, measurement, and control solutions worldwide. It offers plasma power solutions, including direct current (DC), pulsed DC, low frequency alternating current, high voltage, and radio frequency (RF) power supplies, as well as RF power supplies, RF matching networks, and RF instrumentation products; and remote plasma sources for reactive gas applications. The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, epitaxy, crystal growing, and chemical processing, as well as metal, carbon fiber, and glass manufacturing and other industrial power applications; high voltage DC-DC products for semiconductor wafer processing and metrology, electrostatic clamping of substrates, scientific instrumentation, mass spectrometry, and X-ray systems for industrial and analytical applications; and low voltage DC-DC board mounted solutions for use in healthcare, telecommunications, test and measurement, instrumentation, and industrial equipment applications, as well as distributed power in server and storage systems. In addition, it offers gas sensing and monitoring products for the energy market, air quality monitoring, and automobile emission monitoring and testing; and embedded power products for medical equipment or IEC 60950-1 for information technology equipment. Further, it offers conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. The company provides its products through a direct sales force, independent sales representatives, channel partners, and distributors.
AEIS (Advanced Energy Industries, Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $12.90B, a trailing P/E of 67.13, a beta of 1.40 versus the broader market, a 52-week range of 112.25-397.44, average daily share volume of 661K, a public-listing history dating back to 1995, approximately 10K full-time employees. These structural characteristics shape how AEIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates AEIS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 67.13 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. AEIS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AEIS?
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 AEIS snapshot
As of May 15, 2026, spot at $326.23, ATM IV 62.80%, IV rank 44.60%, expected move 18.00%. The butterfly on AEIS 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 AEIS specifically: AEIS IV at 62.80% 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 18.00% (roughly $58.74 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 AEIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEIS should anchor to the underlying notional of $326.23 per share and to the trader's directional view on AEIS stock.
AEIS butterfly setup
The AEIS 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 AEIS near $326.23, the first option leg uses a $310.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEIS 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 AEIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $310.00 | $33.05 |
| Sell 2 | Call | $330.00 | $23.30 |
| Buy 1 | Call | $340.00 | $19.35 |
AEIS butterfly risk and reward
- Net Premium / Debit
- -$580.00
- Max Profit (per contract)
- $1,304.70
- Max Loss (per contract)
- -$580.00
- Breakeven(s)
- $315.80
- Risk / Reward Ratio
- 2.249
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.
AEIS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AEIS. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$580.00 |
| $72.14 | -77.9% | -$580.00 |
| $144.27 | -55.8% | -$580.00 |
| $216.40 | -33.7% | -$580.00 |
| $288.53 | -11.6% | -$580.00 |
| $360.66 | +10.6% | +$420.00 |
| $432.79 | +32.7% | +$420.00 |
| $504.92 | +54.8% | +$420.00 |
| $577.05 | +76.9% | +$420.00 |
| $649.18 | +99.0% | +$420.00 |
When traders use butterfly on AEIS
Butterflies on AEIS are pinning bets - traders use them when they expect AEIS 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.
AEIS thesis for this butterfly
The market-implied 1-standard-deviation range for AEIS extends from approximately $267.49 on the downside to $384.97 on the upside. A AEIS long call butterfly is a pinning play: it pays maximum at the middle strike if AEIS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AEIS IV rank near 44.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AEIS should anchor more to the directional view and the expected-move geometry. As a Industrials name, AEIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEIS-specific events.
AEIS 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. AEIS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AEIS alongside the broader basket even when AEIS-specific fundamentals are unchanged. Always rebuild the position from current AEIS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AEIS?
- A butterfly on AEIS is the butterfly strategy applied to AEIS (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 AEIS stock trading near $326.23, the strikes shown on this page are snapped to the nearest listed AEIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AEIS 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 AEIS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.80%), the computed maximum profit is $1,304.70 per contract and the computed maximum loss is -$580.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AEIS butterfly?
- The breakeven for the AEIS butterfly priced on this page is roughly $315.80 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 AEIS market-implied 1-standard-deviation expected move is approximately 18.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AEIS?
- Butterflies on AEIS are pinning bets - traders use them when they expect AEIS 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 AEIS implied volatility affect this butterfly?
- AEIS ATM IV is at 62.80% with IV rank near 44.60%, 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.