AMG Butterfly Strategy
AMG (Affiliated Managers Group, Inc.), in the Financial Services sector, (Asset Management industry), listed on NYSE.
Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets. In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services.
AMG (Affiliated Managers Group, Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.02B, a trailing P/E of 10.78, a beta of 1.14 versus the broader market, a 52-week range of 172.54-334.78, average daily share volume of 376K, a public-listing history dating back to 1997, approximately 4K full-time employees. These structural characteristics shape how AMG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.14 places AMG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.78 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AMG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AMG?
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 AMG snapshot
As of May 15, 2026, spot at $296.12, ATM IV 35.00%, IV rank 58.79%, expected move 10.03%. The butterfly on AMG 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 AMG specifically: AMG IV at 35.00% 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 10.03% (roughly $29.71 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 AMG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMG should anchor to the underlying notional of $296.12 per share and to the trader's directional view on AMG stock.
AMG butterfly setup
The AMG 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 AMG near $296.12, the first option leg uses a $280.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMG 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 AMG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $280.00 | $23.60 |
| Sell 2 | Call | $300.00 | $11.10 |
| Buy 1 | Call | $310.00 | $7.15 |
AMG butterfly risk and reward
- Net Premium / Debit
- -$855.00
- Max Profit (per contract)
- $1,086.10
- Max Loss (per contract)
- -$855.00
- Breakeven(s)
- $288.55
- Risk / Reward Ratio
- 1.270
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.
AMG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMG. 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% | -$855.00 |
| $65.48 | -77.9% | -$855.00 |
| $130.96 | -55.8% | -$855.00 |
| $196.43 | -33.7% | -$855.00 |
| $261.90 | -11.6% | -$855.00 |
| $327.37 | +10.6% | +$145.00 |
| $392.85 | +32.7% | +$145.00 |
| $458.32 | +54.8% | +$145.00 |
| $523.79 | +76.9% | +$145.00 |
| $589.26 | +99.0% | +$145.00 |
When traders use butterfly on AMG
Butterflies on AMG are pinning bets - traders use them when they expect AMG 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.
AMG thesis for this butterfly
The market-implied 1-standard-deviation range for AMG extends from approximately $266.41 on the downside to $325.83 on the upside. A AMG long call butterfly is a pinning play: it pays maximum at the middle strike if AMG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMG IV rank near 58.79% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AMG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AMG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMG-specific events.
AMG 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. AMG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMG alongside the broader basket even when AMG-specific fundamentals are unchanged. Always rebuild the position from current AMG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMG?
- A butterfly on AMG is the butterfly strategy applied to AMG (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 AMG stock trading near $296.12, the strikes shown on this page are snapped to the nearest listed AMG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMG 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 AMG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.00%), the computed maximum profit is $1,086.10 per contract and the computed maximum loss is -$855.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMG butterfly?
- The breakeven for the AMG butterfly priced on this page is roughly $288.55 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 AMG market-implied 1-standard-deviation expected move is approximately 10.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMG?
- Butterflies on AMG are pinning bets - traders use them when they expect AMG 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 AMG implied volatility affect this butterfly?
- AMG ATM IV is at 35.00% with IV rank near 58.79%, 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.