AIN Butterfly Strategy
AIN (Albany International Corp.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.
Albany International Corp., together with its subsidiaries, engages in the textile and materials processing business. The company operates in two segments, Machine Clothing (MC) and Albany Engineered Composites (AEC). The MC segment designs, manufactures, and markets paper machine clothing for use in the manufacturing of papers, paperboards, tissues, and towels. This segment offers forming, pressing, and drying fabrics, as well as process belts used in the manufacture of nonwovens, fiber cement and several other industrial applications; and engineered fabrics. The AEC segment 3D-woven and injected composite components for aircraft engines composite airframe and engine components for military and commercial aircraft. It operates in the United States, Switzerland, Brazil, China, France, Mexico, and internationally.
AIN (Albany International Corp.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $1.79B, a beta of 1.18 versus the broader market, a 52-week range of 41.15-73, average daily share volume of 288K, a public-listing history dating back to 1987, approximately 5K full-time employees. These structural characteristics shape how AIN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places AIN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AIN?
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 AIN snapshot
As of May 15, 2026, spot at $60.46, ATM IV 53.80%, IV rank 19.89%, expected move 15.42%. The butterfly on AIN 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 AIN specifically: AIN IV at 53.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIN butterfly, with a market-implied 1-standard-deviation move of approximately 15.42% (roughly $9.33 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 AIN expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIN should anchor to the underlying notional of $60.46 per share and to the trader's directional view on AIN stock.
AIN butterfly setup
The AIN 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 AIN near $60.46, the first option leg uses a $57.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIN 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 AIN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $57.44 | N/A |
| Sell 2 | Call | $60.46 | N/A |
| Buy 1 | Call | $63.48 | N/A |
AIN 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.
AIN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIN. 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 AIN
Butterflies on AIN are pinning bets - traders use them when they expect AIN 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.
AIN thesis for this butterfly
The market-implied 1-standard-deviation range for AIN extends from approximately $51.13 on the downside to $69.79 on the upside. A AIN long call butterfly is a pinning play: it pays maximum at the middle strike if AIN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIN IV rank near 19.89% 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 AIN at 53.80%. As a Consumer Cyclical name, AIN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIN-specific events.
AIN 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. AIN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIN alongside the broader basket even when AIN-specific fundamentals are unchanged. Always rebuild the position from current AIN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIN?
- A butterfly on AIN is the butterfly strategy applied to AIN (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 AIN stock trading near $60.46, the strikes shown on this page are snapped to the nearest listed AIN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIN 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 AIN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.80%), 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 AIN butterfly?
- The breakeven for the AIN 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 AIN market-implied 1-standard-deviation expected move is approximately 15.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIN?
- Butterflies on AIN are pinning bets - traders use them when they expect AIN 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 AIN implied volatility affect this butterfly?
- AIN ATM IV is at 53.80% with IV rank near 19.89%, 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.