How are AER 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 AER butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $432.45 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AER butterfly?

The breakeven for the AER butterfly priced on this page is roughly $135.19 and $144.85 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 AER market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AER implied volatility affect this butterfly?

AER ATM IV is at 28.30% with IV rank near 51.37%, 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.

AER Butterfly Strategy

AER (AerCap Holdings N.V.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. The company also provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. In addition, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. As of December 31, 2021, the company had a portfolio of 2,369 owned, managed, or on order aircraft.

AER (AerCap Holdings N.V.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $23.84B, a trailing P/E of 5.88, a beta of 0.95 versus the broader market, a 52-week range of 105.65-154.94, average daily share volume of 1.4M, a public-listing history dating back to 2006, approximately 698 full-time employees. These structural characteristics shape how AER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.95 places AER roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 5.88 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AER pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AER?

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 AER snapshot

As of May 15, 2026, spot at $140.40, ATM IV 28.30%, IV rank 51.37%, expected move 8.11%. The butterfly on AER 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 AER specifically: AER IV at 28.30% 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 8.11% (roughly $11.39 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 AER expiries trade a higher absolute premium for lower per-day decay. Position sizing on AER should anchor to the underlying notional of $140.40 per share and to the trader's directional view on AER stock.

AER butterfly setup

The AER 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 AER near $140.40, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AER 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 AER shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$135.00	$8.40
Sell 2	Call	$140.00	$5.45
Buy 1	Call	$145.00	$2.88

AER butterfly risk and reward

Net Premium / Debit: -$37.50
Max Profit (per contract): $432.45
Max Loss (per contract): -$37.50
Breakeven(s): $135.19, $144.85
Risk / Reward Ratio: 11.532

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.

AER butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AER. 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%	-$37.50
$31.05	-77.9%	-$37.50
$62.09	-55.8%	-$37.50
$93.14	-33.7%	-$37.50
$124.18	-11.6%	-$37.50
$155.22	+10.6%	-$37.50
$186.26	+32.7%	-$37.50
$217.30	+54.8%	-$37.50
$248.35	+76.9%	-$37.50
$279.39	+99.0%	-$37.50

When traders use butterfly on AER

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

AER thesis for this butterfly

The market-implied 1-standard-deviation range for AER extends from approximately $129.01 on the downside to $151.79 on the upside. A AER long call butterfly is a pinning play: it pays maximum at the middle strike if AER settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AER IV rank near 51.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AER should anchor more to the directional view and the expected-move geometry. As a Industrials name, AER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AER-specific events.

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

Frequently asked questions

What is a butterfly on AER?: A butterfly on AER is the butterfly strategy applied to AER (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 AER stock trading near $140.40, the strikes shown on this page are snapped to the nearest listed AER chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AER 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 AER butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $432.45 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AER butterfly?: The breakeven for the AER butterfly priced on this page is roughly $135.19 and $144.85 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 AER market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AER?: Butterflies on AER are pinning bets - traders use them when they expect AER 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 AER implied volatility affect this butterfly?: AER ATM IV is at 28.30% with IV rank near 51.37%, 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.