ALTG Butterfly Strategy
ALTG (Alta Equipment Group Inc.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.
Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates in two segments, Material Handling and Construction Equipment. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and aerial work platforms, earthmoving equipment, cranes, paving and asphalt equipment, and other material handling and construction equipment. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; and provides automated equipment installation and system integration solutions. It serves diversified manufacturing, food and beverage, wholesale/retail, construction, automotive, municipal/government, and medical sectors.
ALTG (Alta Equipment Group Inc.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $211.8M, a beta of 1.81 versus the broader market, a 52-week range of 4.155-8.99, average daily share volume of 246K, a public-listing history dating back to 2019, approximately 3K full-time employees. These structural characteristics shape how ALTG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.81 indicates ALTG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ALTG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ALTG?
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 ALTG snapshot
As of May 15, 2026, spot at $6.37, ATM IV 59.20%, IV rank 9.14%, expected move 16.97%. The butterfly on ALTG 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 ALTG specifically: ALTG IV at 59.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ALTG butterfly, with a market-implied 1-standard-deviation move of approximately 16.97% (roughly $1.08 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 ALTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALTG should anchor to the underlying notional of $6.37 per share and to the trader's directional view on ALTG stock.
ALTG butterfly setup
The ALTG 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 ALTG near $6.37, the first option leg uses a $6.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALTG 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 ALTG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.05 | N/A |
| Sell 2 | Call | $6.37 | N/A |
| Buy 1 | Call | $6.69 | N/A |
ALTG 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.
ALTG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ALTG. 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 ALTG
Butterflies on ALTG are pinning bets - traders use them when they expect ALTG 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.
ALTG thesis for this butterfly
The market-implied 1-standard-deviation range for ALTG extends from approximately $5.29 on the downside to $7.45 on the upside. A ALTG long call butterfly is a pinning play: it pays maximum at the middle strike if ALTG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ALTG IV rank near 9.14% 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 ALTG at 59.20%. As a Industrials name, ALTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALTG-specific events.
ALTG 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. ALTG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALTG alongside the broader basket even when ALTG-specific fundamentals are unchanged. Always rebuild the position from current ALTG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ALTG?
- A butterfly on ALTG is the butterfly strategy applied to ALTG (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 ALTG stock trading near $6.37, the strikes shown on this page are snapped to the nearest listed ALTG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALTG 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 ALTG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 59.20%), 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 ALTG butterfly?
- The breakeven for the ALTG 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 ALTG market-implied 1-standard-deviation expected move is approximately 16.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ALTG?
- Butterflies on ALTG are pinning bets - traders use them when they expect ALTG 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 ALTG implied volatility affect this butterfly?
- ALTG ATM IV is at 59.20% with IV rank near 9.14%, 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.