AMN Butterfly Strategy
AMN (AMN Healthcare Services, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to hospitals and healthcare facilities in the United States. It operates through three segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. The Nurse and Allied Solutions segment offers travel nurse staffing, rapid response nurse staffing and labor disruption, allied staffing, local staffing, and revenue cycle solutions. The Physician and Leadership Solutions segment provides locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement solutions. The Technology and Workforce Solutions segment offers language services, vendor management systems, workforce optimization, telehealth, credentialing, and outsourced solutions. The company also provides allied health professionals, such as physical therapists, respiratory therapists, occupational therapists, medical and radiology technologists, lab technicians, speech pathologists, rehabilitation assistants, and pharmacists.
AMN (AMN Healthcare Services, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.20B, a beta of 0.30 versus the broader market, a 52-week range of 14.87-31.65, average daily share volume of 1.2M, a public-listing history dating back to 2001, approximately 3K full-time employees. These structural characteristics shape how AMN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.30 indicates AMN 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 AMN?
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 AMN snapshot
As of May 15, 2026, spot at $28.75, ATM IV 54.10%, IV rank 9.95%, expected move 15.51%. The butterfly on AMN 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 AMN specifically: AMN IV at 54.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMN butterfly, with a market-implied 1-standard-deviation move of approximately 15.51% (roughly $4.46 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 AMN expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMN should anchor to the underlying notional of $28.75 per share and to the trader's directional view on AMN stock.
AMN butterfly setup
The AMN 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 AMN near $28.75, the first option leg uses a $27.31 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMN 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 AMN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $27.31 | N/A |
| Sell 2 | Call | $28.75 | N/A |
| Buy 1 | Call | $30.19 | N/A |
AMN 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.
AMN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMN. 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 AMN
Butterflies on AMN are pinning bets - traders use them when they expect AMN 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.
AMN thesis for this butterfly
The market-implied 1-standard-deviation range for AMN extends from approximately $24.29 on the downside to $33.21 on the upside. A AMN long call butterfly is a pinning play: it pays maximum at the middle strike if AMN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMN IV rank near 9.95% 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 AMN at 54.10%. As a Healthcare name, AMN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMN-specific events.
AMN 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. AMN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMN alongside the broader basket even when AMN-specific fundamentals are unchanged. Always rebuild the position from current AMN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMN?
- A butterfly on AMN is the butterfly strategy applied to AMN (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 AMN stock trading near $28.75, the strikes shown on this page are snapped to the nearest listed AMN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMN 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 AMN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.10%), 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 AMN butterfly?
- The breakeven for the AMN 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 AMN market-implied 1-standard-deviation expected move is approximately 15.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMN?
- Butterflies on AMN are pinning bets - traders use them when they expect AMN 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 AMN implied volatility affect this butterfly?
- AMN ATM IV is at 54.10% with IV rank near 9.95%, 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.