AIZ Butterfly Strategy
AIZ (Assurant, Inc.), in the Financial Services sector, (Insurance - Specialty industry), listed on NYSE.
Assurant, Inc. operates globally, delivering essential lifestyle and housing solutions designed to secure, assist, and connect consumer acquisitions across diverse markets including North America, Latin America, Europe, and the Asia Pacific. The company's operations are divided into two main divisions: Global Lifestyle and Global Housing. The Global Lifestyle segment provides comprehensive mobile device support, extended warranty and maintenance programs for mobile devices, consumer electronics, and appliances, as well as vehicle protection plans and associated services, alongside credit protection and other insurance offerings. Conversely, the Global Housing segment focuses on various insurance products, encompassing lender-placed homeowners, manufactured home, and flood coverage. It also offers renters insurance and related benefits, in addition to optional manufactured housing and homeowners policies, and other specialized insurance products. Founded in 1892, the company was formerly known as Fortis, Inc. before officially changing its name to Assurant, Inc. in February 2004.
AIZ (Assurant, Inc.) trades in the Financial Services sector, specifically Insurance - Specialty, with a market capitalization of approximately $13.99B, a trailing P/E of 13.15, a beta of 0.54 versus the broader market, a 52-week range of 205.01-303.94, average daily share volume of 411K, a public-listing history dating back to 2004, approximately 15K full-time employees. These structural characteristics shape how AIZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates AIZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AIZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AIZ?
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.
AIZ snapshot
As of August 14, 2026, spot at $282.47, ATM IV 18.60%, IV rank 2.84%, expected move 5.33%. The butterfly on AIZ below is built from the August 14, 2026 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 AIZ specifically: AIZ IV at 18.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIZ butterfly, with a market-implied 1-standard-deviation move of approximately 5.33% (roughly $15.06 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 AIZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIZ should anchor to the underlying notional of $282.47 per share and to the trader's directional view on AIZ stock.
AIZ butterfly setup
The AIZ butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIZ at $282.47 on that close, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIZ 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 AIZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $270.00 | $15.55 |
| Sell 2 | Call | $280.00 | $8.00 |
| Buy 1 | Call | $300.00 | $1.88 |
AIZ butterfly risk and reward
- Net Premium / Debit
- -$143.00
- Max Profit (per contract)
- $751.44
- Max Loss (per contract)
- -$1,143.00
- Breakeven(s)
- $271.30, $288.57
- Risk / Reward Ratio
- 0.657
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.
AIZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AIZ. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$143.00 |
| $62.46 | -77.9% | -$143.00 |
| $124.92 | -55.8% | -$143.00 |
| $187.37 | -33.7% | -$143.00 |
| $249.83 | -11.6% | -$143.00 |
| $312.28 | +10.6% | -$1,143.00 |
| $374.74 | +32.7% | -$1,143.00 |
| $437.19 | +54.8% | -$1,143.00 |
| $499.65 | +76.9% | -$1,143.00 |
| $562.10 | +99.0% | -$1,143.00 |
When traders use butterfly on AIZ
Butterflies on AIZ are pinning bets - traders use them when they expect AIZ 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.
AIZ thesis for this butterfly
The market-implied 1-standard-deviation range for AIZ extends from approximately $267.41 on the downside to $297.53 on the upside. A AIZ long call butterfly is a pinning play: it pays maximum at the middle strike if AIZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIZ IV rank near 2.84% 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 AIZ at 18.60%. As a Financial Services name, AIZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIZ-specific events.
AIZ 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. AIZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIZ alongside the broader basket even when AIZ-specific fundamentals are unchanged. Always rebuild the position from current AIZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AIZ?
- A butterfly on AIZ is the butterfly strategy applied to AIZ (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 AIZ stock at $282.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIZ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AIZ 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 AIZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.60%), the computed maximum profit is $751.44 per contract and the computed maximum loss is -$1,143.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIZ butterfly?
- The breakeven for the AIZ butterfly priced on this page is roughly $271.30 and $288.57 at expiration, derived from the August 14, 2026 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 AIZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AIZ?
- Butterflies on AIZ are pinning bets - traders use them when they expect AIZ 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 AIZ implied volatility affect this butterfly?
- AIZ ATM IV is at 18.60% with IV rank near 2.84%, 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.