ALM Butterfly Strategy
ALM (Almonty Industries Inc. Common Shares), in the Basic Materials sector, (Other Precious Metals industry), listed on NASDAQ.
Almonty Industries Inc. engages in mining, processing, and shipping of tungsten concentrate. The company explores for tin and tungsten deposits. It holds a portfolio of projects and mines located in Spain, Portugal, and Republic of Korea. Almonty Industries Inc. is headquartered in Toronto, Canada.
ALM (Almonty Industries Inc. Common Shares) trades in the Basic Materials sector, specifically Other Precious Metals, with a market capitalization of approximately $5.48B, a beta of 1.28 versus the broader market, a 52-week range of 3.16-24.41, average daily share volume of 5.5M, a public-listing history dating back to 2025, approximately 341 full-time employees. These structural characteristics shape how ALM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places ALM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on ALM?
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 ALM snapshot
As of May 15, 2026, spot at $17.52, ATM IV 91.40%, expected move 26.20%. The butterfly on ALM 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 ALM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ALM is inferred from ATM IV at 91.40% alone, with a market-implied 1-standard-deviation move of approximately 26.20% (roughly $4.59 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 ALM expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALM should anchor to the underlying notional of $17.52 per share and to the trader's directional view on ALM stock.
ALM butterfly setup
The ALM 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 ALM near $17.52, the first option leg uses a $16.64 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALM 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 ALM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $16.64 | N/A |
| Sell 2 | Call | $17.52 | N/A |
| Buy 1 | Call | $18.40 | N/A |
ALM 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.
ALM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ALM. 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 ALM
Butterflies on ALM are pinning bets - traders use them when they expect ALM 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.
ALM thesis for this butterfly
The market-implied 1-standard-deviation range for ALM extends from approximately $12.93 on the downside to $22.11 on the upside. A ALM long call butterfly is a pinning play: it pays maximum at the middle strike if ALM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Basic Materials name, ALM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALM-specific events.
ALM 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. ALM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALM alongside the broader basket even when ALM-specific fundamentals are unchanged. Always rebuild the position from current ALM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ALM?
- A butterfly on ALM is the butterfly strategy applied to ALM (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 ALM stock trading near $17.52, the strikes shown on this page are snapped to the nearest listed ALM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALM 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 ALM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 91.40%), 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 ALM butterfly?
- The breakeven for the ALM 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 ALM market-implied 1-standard-deviation expected move is approximately 26.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ALM?
- Butterflies on ALM are pinning bets - traders use them when they expect ALM 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 ALM implied volatility affect this butterfly?
- Current ALM ATM IV is 91.40%; IV rank context is unavailable in the current snapshot.