AIRJ Butterfly Strategy
AIRJ (AirJoule Technologies Corporation), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
AirJoule Technologies Corporation operates as an atmospheric renewable energy and water harvesting technology company. It provides energy and dehumidification, water harvesting systems, water recapture systems, evaporative heat pump systems, water heating systems, low relative humidity drying systems, pre- and mid-cool integration coils, evaporative cooling, advanced vacuum pump systems, isothermal condenser design, gate and seal systems, and atmospheric water generation through its AirJoule technology. In addition, it offers solutions, such as water from air, water recovery, data centers, cooling systems, and moisture control. The company was founded in 2018 and is headquartered in Ronan, Montana.
AIRJ (AirJoule Technologies Corporation) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $457.6M, a beta of 0.86 versus the broader market, a 52-week range of 2.22-6.75, average daily share volume of 1.3M, a public-listing history dating back to 2022, approximately 16 full-time employees. These structural characteristics shape how AIRJ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places AIRJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on AIRJ?
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.
AIRJ snapshot
As of August 14, 2026, spot at $6.05, ATM IV 97.10%, IV rank 15.70%, expected move 27.84%. The butterfly on AIRJ below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on AIRJ specifically: AIRJ IV at 97.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIRJ butterfly, with a market-implied 1-standard-deviation move of approximately 27.84% (roughly $1.68 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIRJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIRJ should anchor to the underlying notional of $6.05 per share and to the trader's directional view on AIRJ stock.
AIRJ butterfly setup
The AIRJ 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 AIRJ at $6.05 on that close, the first option leg uses a $5.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIRJ chain at a 35-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 AIRJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.75 | N/A |
| Sell 2 | Call | $6.05 | N/A |
| Buy 1 | Call | $6.35 | N/A |
AIRJ 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.
AIRJ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIRJ. 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 AIRJ
Butterflies on AIRJ are pinning bets - traders use them when they expect AIRJ 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.
AIRJ thesis for this butterfly
The market-implied 1-standard-deviation range for AIRJ extends from approximately $4.37 on the downside to $7.73 on the upside. A AIRJ long call butterfly is a pinning play: it pays maximum at the middle strike if AIRJ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIRJ IV rank near 15.70% 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 AIRJ at 97.10%. As a Industrials name, AIRJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIRJ-specific events.
AIRJ 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. AIRJ positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIRJ alongside the broader basket even when AIRJ-specific fundamentals are unchanged. Always rebuild the position from current AIRJ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIRJ?
- A butterfly on AIRJ is the butterfly strategy applied to AIRJ (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 AIRJ stock at $6.05 on the most recent close, the strikes shown on this page are snapped to the nearest listed AIRJ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AIRJ 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 AIRJ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 97.10%), 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 AIRJ butterfly?
- The breakeven for the AIRJ butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIRJ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIRJ?
- Butterflies on AIRJ are pinning bets - traders use them when they expect AIRJ 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 AIRJ implied volatility affect this butterfly?
- AIRJ ATM IV is at 97.10% with IV rank near 15.70%, 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.