AMT Butterfly Strategy
AMT (American Tower Corporation), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.
American Tower Corporation is one of the largest global real estate investment trusts. It is a leading independent owner, operator and developer of multitenant communications real estate. The Company's primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a few other industries. The Company refers to this business, inclusive of its data center business discussed below, as its property operations. Additionally, the Company offers tower-related services in the United States, which the Company refers to as its services operations. These services include site application, zoning and permitting, structural and mount analyses, and construction management services, together with program management offerings that support customer deployment needs from project scoping through construction.
AMT (American Tower Corporation) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $81.81B, a trailing P/E of 24.22, a beta of 0.89 versus the broader market, a 52-week range of 160.06-214.79, average daily share volume of 3.1M, a public-listing history dating back to 1998, approximately 5K full-time employees. These structural characteristics shape how AMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.89 places AMT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AMT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AMT?
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.
AMT snapshot
As of August 14, 2026, spot at $175.14, ATM IV 26.00%, IV rank 44.05%, expected move 7.45%. The butterfly on AMT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on AMT specifically: AMT IV at 26.00% 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 7.45% (roughly $13.05 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMT should anchor to the underlying notional of $175.14 per share and to the trader's directional view on AMT stock.
AMT butterfly setup
The AMT butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AMT at $175.14 on that close, the first option leg uses a $165.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMT chain at a 35-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 AMT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $165.00 | $12.65 |
| Sell 2 | Call | $175.00 | $6.15 |
| Buy 1 | Call | $185.00 | $2.20 |
AMT butterfly risk and reward
- Net Premium / Debit
- -$255.00
- Max Profit (per contract)
- $671.49
- Max Loss (per contract)
- -$255.00
- Breakeven(s)
- $167.55, $182.45
- Risk / Reward Ratio
- 2.633
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.
AMT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMT. 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% | -$255.00 |
| $38.73 | -77.9% | -$255.00 |
| $77.46 | -55.8% | -$255.00 |
| $116.18 | -33.7% | -$255.00 |
| $154.90 | -11.6% | -$255.00 |
| $193.63 | +10.6% | -$255.00 |
| $232.35 | +32.7% | -$255.00 |
| $271.07 | +54.8% | -$255.00 |
| $309.80 | +76.9% | -$255.00 |
| $348.52 | +99.0% | -$255.00 |
When traders use butterfly on AMT
Butterflies on AMT are pinning bets - traders use them when they expect AMT 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.
AMT thesis for this butterfly
The market-implied 1-standard-deviation range for AMT extends from approximately $162.09 on the downside to $188.19 on the upside. A AMT long call butterfly is a pinning play: it pays maximum at the middle strike if AMT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMT IV rank near 44.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AMT should anchor more to the directional view and the expected-move geometry. As a Real Estate name, AMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMT-specific events.
AMT 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. AMT positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMT alongside the broader basket even when AMT-specific fundamentals are unchanged. Always rebuild the position from current AMT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMT?
- A butterfly on AMT is the butterfly strategy applied to AMT (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 AMT stock at $175.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AMT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AMT 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 AMT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.00%), the computed maximum profit is $671.49 per contract and the computed maximum loss is -$255.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMT butterfly?
- The breakeven for the AMT butterfly priced on this page is roughly $167.55 and $182.45 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMT?
- Butterflies on AMT are pinning bets - traders use them when they expect AMT 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 AMT implied volatility affect this butterfly?
- AMT ATM IV is at 26.00% with IV rank near 44.05%, 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.