AIP Butterfly Strategy
AIP (Arteris, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Arteris, Inc. provides semiconductor interconnect intellectual property (IP) and IP deployment solutions in the Americas, the Asia Pacific, Europe, and the Middle East. The company develops, licenses, and supports the on-chip interconnect fabric technology used in System-on-Chip (Soc) designs and Network-on-Chip (NoC) interconnect IP. Its products include FlexNoC, a silicon-proven interconnect IP product; FlexNoC Resilience Package, which provides on-chip data protection; Ncore, a silicon-proven and cache coherent interconnect IP product that provides scalable, configurable, and area efficient characteristics; CodaCache, a last-level cache semiconductor IP product; and Physical interconnect aware NoC optimizer, a software tool that estimates physical layout effects during the architecture and logic development stages of an SoC interconnect design; The company also offers FlexWay for IP subsystem interconnect; FlexPSI for All-digital inter chip link; and FlexNoC Physical for linking physical placement and routing tools. In addition, it provides IP deployment software solutions, including specification, design, documentation, artificial intelligence (AI) package, design data intelligence, and harmony trace. The company serves customers in the automotive, AI/machine learning, 5G and wireless communications, data centers, consumer electronics, and other markets. Arteris, Inc. was founded in 2003 and is headquartered in Campbell, California.
AIP (Arteris, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.64B, a beta of 1.94 versus the broader market, a 52-week range of 6.878-36.17, average daily share volume of 593K, a public-listing history dating back to 2021, approximately 267 full-time employees. These structural characteristics shape how AIP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.94 indicates AIP 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 AIP?
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 AIP snapshot
As of May 15, 2026, spot at $33.50, ATM IV 93.20%, IV rank 36.18%, expected move 26.72%. The butterfly on AIP 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 AIP specifically: AIP IV at 93.20% 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 26.72% (roughly $8.95 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 AIP expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIP should anchor to the underlying notional of $33.50 per share and to the trader's directional view on AIP stock.
AIP butterfly setup
The AIP 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 AIP near $33.50, the first option leg uses a $31.83 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIP 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 AIP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.83 | N/A |
| Sell 2 | Call | $33.50 | N/A |
| Buy 1 | Call | $35.18 | N/A |
AIP 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.
AIP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIP. 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 AIP
Butterflies on AIP are pinning bets - traders use them when they expect AIP 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.
AIP thesis for this butterfly
The market-implied 1-standard-deviation range for AIP extends from approximately $24.55 on the downside to $42.45 on the upside. A AIP long call butterfly is a pinning play: it pays maximum at the middle strike if AIP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIP IV rank near 36.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AIP should anchor more to the directional view and the expected-move geometry. As a Technology name, AIP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIP-specific events.
AIP 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. AIP positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIP alongside the broader basket even when AIP-specific fundamentals are unchanged. Always rebuild the position from current AIP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIP?
- A butterfly on AIP is the butterfly strategy applied to AIP (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 AIP stock trading near $33.50, the strikes shown on this page are snapped to the nearest listed AIP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIP 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 AIP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 93.20%), 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 AIP butterfly?
- The breakeven for the AIP 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 AIP market-implied 1-standard-deviation expected move is approximately 26.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIP?
- Butterflies on AIP are pinning bets - traders use them when they expect AIP 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 AIP implied volatility affect this butterfly?
- AIP ATM IV is at 93.20% with IV rank near 36.18%, 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.