AIFU Butterfly Strategy
AIFU (AIFU Inc.), in the Financial Services sector, (Insurance - Diversified industry), listed on NASDAQ.
AIFU Inc., through its subsidiary, distributes insurance products in China. The company operates through two segments, Insurance Agency and Claims Adjusting. The Insurance Agency segment provides life and health insurance products, such as individual whole life, individual health, individual annuity, individual term life, individual endowment life, and participating insurance products; and non-life insurance products primarily includes individual accident, travel, homeowner, indemnity medical, commercial property, cargo, hull, liability, construction and erection, and extended warranty insurance products. The Claims Adjusting segment offers pre-underwriting survey, claims adjusting, residual value disposal, loading and unloading supervision, and consulting services. It also provides value-added services; elderly care services; healthcare services; and family governance services. In addition, the company operates FA app, an insurance sales and service platform; Fanhua RONS Assistant Digital Operating Platform, a digital marketing platform; Fanhua RONS Guanjia, a customer service platform; and WeCom that enables agents to directly interact with existing and potential customers.
AIFU (AIFU Inc.) trades in the Financial Services sector, specifically Insurance - Diversified, with a market capitalization of approximately $275.3M, a beta of 1.00 versus the broader market, a 52-week range of 20-188, average daily share volume of 4K, a public-listing history dating back to 2007, approximately 5K full-time employees. These structural characteristics shape how AIFU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places AIFU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on AIFU?
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 AIFU snapshot
As of June 30, 2026, spot at $80.00, ATM IV 43.80%, IV rank 5.51%, expected move 12.56%. The butterfly on AIFU 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 AIFU specifically: AIFU IV at 43.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIFU butterfly, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $10.05 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 AIFU expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIFU should anchor to the underlying notional of $80.00 per share and to the trader's directional view on AIFU stock.
AIFU butterfly setup
The AIFU 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 AIFU near $80.00, the first option leg uses a $76.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIFU 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 AIFU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $76.00 | N/A |
| Sell 2 | Call | $80.00 | N/A |
| Buy 1 | Call | $84.00 | N/A |
AIFU 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.
AIFU butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIFU. 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 AIFU
Butterflies on AIFU are pinning bets - traders use them when they expect AIFU 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.
AIFU thesis for this butterfly
The market-implied 1-standard-deviation range for AIFU extends from approximately $69.95 on the downside to $90.05 on the upside. A AIFU long call butterfly is a pinning play: it pays maximum at the middle strike if AIFU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIFU IV rank near 5.51% 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 AIFU at 43.80%. As a Financial Services name, AIFU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIFU-specific events.
AIFU 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. AIFU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIFU alongside the broader basket even when AIFU-specific fundamentals are unchanged. Always rebuild the position from current AIFU chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIFU?
- A butterfly on AIFU is the butterfly strategy applied to AIFU (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 AIFU stock trading near $80.00, the strikes shown on this page are snapped to the nearest listed AIFU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIFU 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 AIFU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.80%), 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 AIFU butterfly?
- The breakeven for the AIFU 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 AIFU market-implied 1-standard-deviation expected move is approximately 12.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIFU?
- Butterflies on AIFU are pinning bets - traders use them when they expect AIFU 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 AIFU implied volatility affect this butterfly?
- AIFU ATM IV is at 43.80% with IV rank near 5.51%, 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.