AMTM Butterfly Strategy
AMTM (Amentum Holdings, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Amentum Holdings, Inc. is a provider of critical, technology-driven services, serving both governmental and commercial sectors. Its operations are structured around two distinct segments: Critical Mission Solutions and Cyber & Intelligence. The Critical Mission Solutions (CMS) segment delivers comprehensive support across various domains. This includes testing, training, and operational oversight for advanced missile defense systems. It also furnishes IT and engineering expertise to both defense organizations and the burgeoning space sector. Moreover, CMS offers technological solutions to energy clients, encompassing installation, decommissioning, and vital environmental remediation efforts, in addition to specialized technical consulting services.
AMTM (Amentum Holdings, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $5.50B, a trailing P/E of 26.94, a beta of 0.31 versus the broader market, a 52-week range of 19.802-38.11, average daily share volume of 1.9M, a public-listing history dating back to 2024, approximately 50K full-time employees. These structural characteristics shape how AMTM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.31 indicates AMTM 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 AMTM?
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.
AMTM snapshot
As of August 14, 2026, spot at $21.51, ATM IV 42.80%, IV rank 16.68%, expected move 12.27%. The butterfly on AMTM below is built from the 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 AMTM specifically: AMTM IV at 42.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMTM butterfly, with a market-implied 1-standard-deviation move of approximately 12.27% (roughly $2.64 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 AMTM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMTM should anchor to the underlying notional of $21.51 per share and to the trader's directional view on AMTM stock.
AMTM butterfly setup
The AMTM 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 AMTM at $21.51 on that close, the first option leg uses a $20.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMTM 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 AMTM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.43 | N/A |
| Sell 2 | Call | $21.51 | N/A |
| Buy 1 | Call | $22.59 | N/A |
AMTM 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.
AMTM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AMTM. 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 AMTM
Butterflies on AMTM are pinning bets - traders use them when they expect AMTM 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.
AMTM thesis for this butterfly
The market-implied 1-standard-deviation range for AMTM extends from approximately $18.87 on the downside to $24.15 on the upside. A AMTM long call butterfly is a pinning play: it pays maximum at the middle strike if AMTM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMTM IV rank near 16.68% 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 AMTM at 42.80%. As a Industrials name, AMTM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMTM-specific events.
AMTM 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. AMTM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMTM alongside the broader basket even when AMTM-specific fundamentals are unchanged. Always rebuild the position from current AMTM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMTM?
- A butterfly on AMTM is the butterfly strategy applied to AMTM (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 AMTM stock at $21.51 on the most recent close, the strikes shown on this page are snapped to the nearest listed AMTM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AMTM 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 AMTM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.80%), 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 AMTM butterfly?
- The breakeven for the AMTM butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 AMTM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMTM?
- Butterflies on AMTM are pinning bets - traders use them when they expect AMTM 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 AMTM implied volatility affect this butterfly?
- AMTM ATM IV is at 42.80% with IV rank near 16.68%, 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.