AMAL Butterfly Strategy
AMAL (Amalgamated Financial Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; and retail loans, such as residential real estate, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. The company operates through its three branch offices across New York City, one branch office in Washington, D.C., one branch office in San Francisco, one commercial office in Boston, and digital banking platform.
AMAL (Amalgamated Financial Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.19B, a trailing P/E of 11.40, a beta of 0.81 versus the broader market, a 52-week range of 25.13-44.01, average daily share volume of 149K, a public-listing history dating back to 2018, approximately 429 full-time employees. These structural characteristics shape how AMAL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places AMAL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.40 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AMAL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AMAL?
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 AMAL snapshot
As of May 15, 2026, spot at $39.85, ATM IV 37.20%, IV rank 7.78%, expected move 10.66%. The butterfly on AMAL 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 AMAL specifically: AMAL IV at 37.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMAL butterfly, with a market-implied 1-standard-deviation move of approximately 10.66% (roughly $4.25 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 AMAL expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMAL should anchor to the underlying notional of $39.85 per share and to the trader's directional view on AMAL stock.
AMAL butterfly setup
The AMAL 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 AMAL near $39.85, the first option leg uses a $37.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMAL 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 AMAL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.86 | N/A |
| Sell 2 | Call | $39.85 | N/A |
| Buy 1 | Call | $41.84 | N/A |
AMAL 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.
AMAL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMAL. 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 AMAL
Butterflies on AMAL are pinning bets - traders use them when they expect AMAL 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.
AMAL thesis for this butterfly
The market-implied 1-standard-deviation range for AMAL extends from approximately $35.60 on the downside to $44.10 on the upside. A AMAL long call butterfly is a pinning play: it pays maximum at the middle strike if AMAL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMAL IV rank near 7.78% 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 AMAL at 37.20%. As a Financial Services name, AMAL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMAL-specific events.
AMAL 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. AMAL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMAL alongside the broader basket even when AMAL-specific fundamentals are unchanged. Always rebuild the position from current AMAL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMAL?
- A butterfly on AMAL is the butterfly strategy applied to AMAL (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 AMAL stock trading near $39.85, the strikes shown on this page are snapped to the nearest listed AMAL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMAL 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 AMAL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.20%), 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 AMAL butterfly?
- The breakeven for the AMAL 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 AMAL market-implied 1-standard-deviation expected move is approximately 10.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMAL?
- Butterflies on AMAL are pinning bets - traders use them when they expect AMAL 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 AMAL implied volatility affect this butterfly?
- AMAL ATM IV is at 37.20% with IV rank near 7.78%, 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.