AMLX Butterfly Strategy
AMLX (Amylyx Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Amylyx Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in developing various therapeutics for amyotrophic lateral sclerosis (ALS) and other neurodegenerative diseases. The company's product pipeline includes AMX0035, a dual UPR-Bax apoptosis inhibitor composed of sodium phenylbutyrate and taurursodiol for the treatment of amyotrophic lateral sclerosis. It is also developing AMX0035 for other neurodegenerative diseases. The company was founded in 2013 and is headquartered in Cambridge, Massachusetts.
AMLX (Amylyx Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.21B, a beta of -0.10 versus the broader market, a 52-week range of 4.265-18.605, average daily share volume of 1.1M, a public-listing history dating back to 2022, approximately 123 full-time employees. These structural characteristics shape how AMLX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.10 indicates AMLX 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 AMLX?
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 AMLX snapshot
As of May 15, 2026, spot at $13.29, ATM IV 69.20%, IV rank 9.60%, expected move 19.84%. The butterfly on AMLX 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 AMLX specifically: AMLX IV at 69.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMLX butterfly, with a market-implied 1-standard-deviation move of approximately 19.84% (roughly $2.64 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 AMLX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMLX should anchor to the underlying notional of $13.29 per share and to the trader's directional view on AMLX stock.
AMLX butterfly setup
The AMLX 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 AMLX near $13.29, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMLX 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 AMLX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $1.28 |
| Sell 2 | Call | $13.00 | $1.28 |
| Buy 1 | Call | $14.00 | $0.83 |
AMLX butterfly risk and reward
- Net Premium / Debit
- +$45.00
- Max Profit (per contract)
- $45.00
- Max Loss (per contract)
- -$55.00
- Breakeven(s)
- $13.45
- Risk / Reward Ratio
- 0.818
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.
AMLX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMLX. 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 | -99.9% | +$45.00 |
| $2.95 | -77.8% | +$45.00 |
| $5.88 | -55.7% | +$45.00 |
| $8.82 | -33.6% | +$45.00 |
| $11.76 | -11.5% | +$45.00 |
| $14.70 | +10.6% | -$55.00 |
| $17.63 | +32.7% | -$55.00 |
| $20.57 | +54.8% | -$55.00 |
| $23.51 | +76.9% | -$55.00 |
| $26.45 | +99.0% | -$55.00 |
When traders use butterfly on AMLX
Butterflies on AMLX are pinning bets - traders use them when they expect AMLX 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.
AMLX thesis for this butterfly
The market-implied 1-standard-deviation range for AMLX extends from approximately $10.65 on the downside to $15.93 on the upside. A AMLX long call butterfly is a pinning play: it pays maximum at the middle strike if AMLX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMLX IV rank near 9.60% 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 AMLX at 69.20%. As a Healthcare name, AMLX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMLX-specific events.
AMLX 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. AMLX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMLX alongside the broader basket even when AMLX-specific fundamentals are unchanged. Always rebuild the position from current AMLX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMLX?
- A butterfly on AMLX is the butterfly strategy applied to AMLX (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 AMLX stock trading near $13.29, the strikes shown on this page are snapped to the nearest listed AMLX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMLX 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 AMLX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 69.20%), the computed maximum profit is $45.00 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMLX butterfly?
- The breakeven for the AMLX butterfly priced on this page is roughly $13.45 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 AMLX market-implied 1-standard-deviation expected move is approximately 19.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMLX?
- Butterflies on AMLX are pinning bets - traders use them when they expect AMLX 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 AMLX implied volatility affect this butterfly?
- AMLX ATM IV is at 69.20% with IV rank near 9.60%, 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.