AGL Butterfly Strategy
AGL (Agilon Health, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
agilon health, inc. offers healthcare services for seniors through primary care physicians in the communities of the United States. As of December 31, 2021, it served approximately 238,000 senior members, which included 186,300 medicare advantage members and 51,700 medicare fee-for-service beneficiaries. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.
AGL (Agilon Health, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.20B, a beta of 2.31 versus the broader market, a 52-week range of 7.48-74.69, average daily share volume of 391K, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how AGL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.31 indicates AGL 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 AGL?
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 AGL snapshot
As of May 15, 2026, spot at $83.70, ATM IV 103.50%, IV rank 19.18%, expected move 29.67%. The butterfly on AGL 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 AGL specifically: AGL IV at 103.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a AGL butterfly, with a market-implied 1-standard-deviation move of approximately 29.67% (roughly $24.84 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 AGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGL should anchor to the underlying notional of $83.70 per share and to the trader's directional view on AGL stock.
AGL butterfly setup
The AGL 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 AGL near $83.70, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGL 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 AGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $12.50 |
| Sell 2 | Call | $85.00 | $10.05 |
| Buy 1 | Call | $90.00 | $7.95 |
AGL butterfly risk and reward
- Net Premium / Debit
- -$35.00
- Max Profit (per contract)
- $461.67
- Max Loss (per contract)
- -$35.00
- Breakeven(s)
- $80.31, $89.66
- Risk / Reward Ratio
- 13.191
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.
AGL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AGL. 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% | -$35.00 |
| $18.52 | -77.9% | -$35.00 |
| $37.02 | -55.8% | -$35.00 |
| $55.53 | -33.7% | -$35.00 |
| $74.03 | -11.6% | -$35.00 |
| $92.54 | +10.6% | -$35.00 |
| $111.04 | +32.7% | -$35.00 |
| $129.55 | +54.8% | -$35.00 |
| $148.05 | +76.9% | -$35.00 |
| $166.56 | +99.0% | -$35.00 |
When traders use butterfly on AGL
Butterflies on AGL are pinning bets - traders use them when they expect AGL 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.
AGL thesis for this butterfly
The market-implied 1-standard-deviation range for AGL extends from approximately $58.86 on the downside to $108.54 on the upside. A AGL long call butterfly is a pinning play: it pays maximum at the middle strike if AGL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AGL IV rank near 19.18% 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 AGL at 103.50%. As a Healthcare name, AGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGL-specific events.
AGL 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. AGL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGL alongside the broader basket even when AGL-specific fundamentals are unchanged. Always rebuild the position from current AGL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AGL?
- A butterfly on AGL is the butterfly strategy applied to AGL (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 AGL stock trading near $83.70, the strikes shown on this page are snapped to the nearest listed AGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGL 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 AGL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 103.50%), the computed maximum profit is $461.67 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGL butterfly?
- The breakeven for the AGL butterfly priced on this page is roughly $80.31 and $89.66 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 AGL market-implied 1-standard-deviation expected move is approximately 29.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AGL?
- Butterflies on AGL are pinning bets - traders use them when they expect AGL 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 AGL implied volatility affect this butterfly?
- AGL ATM IV is at 103.50% with IV rank near 19.18%, 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.