AIRG Butterfly Strategy
AIRG (Airgain, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Airgain, Inc. designs, develops, and engineers antenna products for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide. The company's products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; ultra-embedded antennas; SmartMax embedded antennas; and MaxBeam carrier class antennas, as well as automotive, fleet, public safety, and machine-to-machine antennas under the Antenna Plus brand. It provides embedded antenna technologies to enable high performance wireless networking in a range of devices and markets, including consumer, enterprise, and automotive. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was incorporated in 1995 and is headquartered in San Diego, California.
AIRG (Airgain, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $84.3M, a beta of 0.91 versus the broader market, a 52-week range of 3-7.39, average daily share volume of 97K, a public-listing history dating back to 2016, approximately 121 full-time employees. These structural characteristics shape how AIRG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places AIRG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on AIRG?
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 AIRG snapshot
As of May 15, 2026, spot at $6.88, ATM IV 57.80%, IV rank 10.41%, expected move 16.57%. The butterfly on AIRG 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 AIRG specifically: AIRG IV at 57.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIRG butterfly, with a market-implied 1-standard-deviation move of approximately 16.57% (roughly $1.14 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 AIRG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIRG should anchor to the underlying notional of $6.88 per share and to the trader's directional view on AIRG stock.
AIRG butterfly setup
The AIRG 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 AIRG near $6.88, the first option leg uses a $6.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIRG 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 AIRG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.54 | N/A |
| Sell 2 | Call | $6.88 | N/A |
| Buy 1 | Call | $7.22 | N/A |
AIRG 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.
AIRG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIRG. 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 AIRG
Butterflies on AIRG are pinning bets - traders use them when they expect AIRG 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.
AIRG thesis for this butterfly
The market-implied 1-standard-deviation range for AIRG extends from approximately $5.74 on the downside to $8.02 on the upside. A AIRG long call butterfly is a pinning play: it pays maximum at the middle strike if AIRG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIRG IV rank near 10.41% 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 AIRG at 57.80%. As a Technology name, AIRG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIRG-specific events.
AIRG 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. AIRG positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIRG alongside the broader basket even when AIRG-specific fundamentals are unchanged. Always rebuild the position from current AIRG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIRG?
- A butterfly on AIRG is the butterfly strategy applied to AIRG (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 AIRG stock trading near $6.88, the strikes shown on this page are snapped to the nearest listed AIRG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIRG 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 AIRG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.80%), 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 AIRG butterfly?
- The breakeven for the AIRG 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 AIRG market-implied 1-standard-deviation expected move is approximately 16.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIRG?
- Butterflies on AIRG are pinning bets - traders use them when they expect AIRG 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 AIRG implied volatility affect this butterfly?
- AIRG ATM IV is at 57.80% with IV rank near 10.41%, 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.