ALMU Butterfly Strategy
ALMU (Aeluma, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Aeluma, Inc. develops optoelectronic devices for sensing and communications applications. It manufactures devices using compound semiconductor materials on diameter silicon wafers that are used to manufacture mass market microelectronics. The company was incorporated in 2019 and is headquartered in Goleta, California.
ALMU (Aeluma, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $446.2M, a beta of -0.09 versus the broader market, a 52-week range of 10.2-31.79, average daily share volume of 1.3M, a public-listing history dating back to 2022, approximately 11 full-time employees. These structural characteristics shape how ALMU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.09 indicates ALMU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on ALMU?
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 ALMU snapshot
As of May 15, 2026, spot at $24.84, ATM IV 148.70%, IV rank 40.27%, expected move 42.63%. The butterfly on ALMU 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 ALMU specifically: ALMU IV at 148.70% 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 42.63% (roughly $10.59 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 ALMU expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALMU should anchor to the underlying notional of $24.84 per share and to the trader's directional view on ALMU stock.
ALMU butterfly setup
The ALMU 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 ALMU near $24.84, the first option leg uses a $23.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALMU 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 ALMU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $23.60 | N/A |
| Sell 2 | Call | $24.84 | N/A |
| Buy 1 | Call | $26.08 | N/A |
ALMU 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.
ALMU butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ALMU. 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 ALMU
Butterflies on ALMU are pinning bets - traders use them when they expect ALMU 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.
ALMU thesis for this butterfly
The market-implied 1-standard-deviation range for ALMU extends from approximately $14.25 on the downside to $35.43 on the upside. A ALMU long call butterfly is a pinning play: it pays maximum at the middle strike if ALMU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ALMU IV rank near 40.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ALMU should anchor more to the directional view and the expected-move geometry. As a Technology name, ALMU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALMU-specific events.
ALMU 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. ALMU positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALMU alongside the broader basket even when ALMU-specific fundamentals are unchanged. Always rebuild the position from current ALMU chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ALMU?
- A butterfly on ALMU is the butterfly strategy applied to ALMU (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 ALMU stock trading near $24.84, the strikes shown on this page are snapped to the nearest listed ALMU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALMU 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 ALMU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 148.70%), 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 ALMU butterfly?
- The breakeven for the ALMU 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 ALMU market-implied 1-standard-deviation expected move is approximately 42.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ALMU?
- Butterflies on ALMU are pinning bets - traders use them when they expect ALMU 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 ALMU implied volatility affect this butterfly?
- ALMU ATM IV is at 148.70% with IV rank near 40.27%, 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.