AFYA Butterfly Strategy
AFYA (Afya Limited), in the Consumer Defensive sector, (Education & Training Services industry), listed on NASDAQ.
Afya Limited, operating through its subsidiaries, is a prominent medical education provider in Brazil. The company delivers a comprehensive array of educational products and services primarily focused on the medical field, encompassing medical schools, preparatory courses for medical residency, advanced graduate studies, and various other programs tailored for medical professionals at all career stages. These offerings are available across its proprietary network and are also extended to external medical institutions. Beyond traditional education, Afya also offers digital health services through a subscription-based platform, accessible via a mobile app and website. This platform is specifically designed to assist healthcare practitioners and students with clinical decision-making by providing essential tools such as medical calculators, reference charts, up-to-date content, prescription guidance, clinical scoring systems, details on medical procedures, and laboratory examination information. While strong in medicine, Afya's educational portfolio spans a broader spectrum of health sciences, including dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine.
AFYA (Afya Limited) trades in the Consumer Defensive sector, specifically Education & Training Services, with a market capitalization of approximately $1.34B, a trailing P/E of 9.09, a beta of 0.37 versus the broader market, a 52-week range of 13-18.155, average daily share volume of 96K, a public-listing history dating back to 2019, approximately 5K full-time employees. These structural characteristics shape how AFYA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.37 indicates AFYA 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 9.09 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AFYA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AFYA?
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 AFYA snapshot
As of June 30, 2026, spot at $14.89, ATM IV 76.00%, IV rank 27.22%, expected move 21.79%. The butterfly on AFYA 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 17-day expiry.
Why this butterfly structure on AFYA specifically: AFYA IV at 76.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a AFYA butterfly, with a market-implied 1-standard-deviation move of approximately 21.79% (roughly $3.24 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 AFYA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AFYA should anchor to the underlying notional of $14.89 per share and to the trader's directional view on AFYA stock.
AFYA butterfly setup
The AFYA 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 AFYA near $14.89, the first option leg uses a $14.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AFYA 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 AFYA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.15 | N/A |
| Sell 2 | Call | $14.89 | N/A |
| Buy 1 | Call | $15.63 | N/A |
AFYA 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.
AFYA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AFYA. 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 AFYA
Butterflies on AFYA are pinning bets - traders use them when they expect AFYA 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.
AFYA thesis for this butterfly
The market-implied 1-standard-deviation range for AFYA extends from approximately $11.65 on the downside to $18.13 on the upside. A AFYA long call butterfly is a pinning play: it pays maximum at the middle strike if AFYA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AFYA IV rank near 27.22% 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 AFYA at 76.00%. As a Consumer Defensive name, AFYA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AFYA-specific events.
AFYA 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. AFYA positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AFYA alongside the broader basket even when AFYA-specific fundamentals are unchanged. Always rebuild the position from current AFYA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AFYA?
- A butterfly on AFYA is the butterfly strategy applied to AFYA (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 AFYA stock trading near $14.89, the strikes shown on this page are snapped to the nearest listed AFYA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AFYA 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 AFYA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 76.00%), 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 AFYA butterfly?
- The breakeven for the AFYA 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 AFYA market-implied 1-standard-deviation expected move is approximately 21.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AFYA?
- Butterflies on AFYA are pinning bets - traders use them when they expect AFYA 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 AFYA implied volatility affect this butterfly?
- AFYA ATM IV is at 76.00% with IV rank near 27.22%, 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.