ANDE Butterfly Strategy
ANDE (The Andersons, Inc.), in the Consumer Defensive sector, (Specialty Business Services industry), listed on NASDAQ.
The Andersons, Inc. operates as an agriculture and renewable fuels company in the United States, Canada, Mexico, and internationally. It operates through Agribusiness and Renewables segments. The Agribusiness segment sells commodities, such as corn, wheat, and soybeans. It also manufactures, distributes, and retails agricultural and related plant nutrients; and agricultural fertilizers. This segment also engages in the merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. The Renewables segment produces, purchases, sells, merchandises, and trades in ethanol, and co-products, as well as merchandises and trades in other biofuels, such as renewable feedstocks.
ANDE (The Andersons, Inc.) trades in the Consumer Defensive sector, specifically Specialty Business Services, with a market capitalization of approximately $2.42B, a trailing P/E of 18.80, a beta of 0.65 versus the broader market, a 52-week range of 31.84-82.11, average daily share volume of 325K, a public-listing history dating back to 1996, approximately 2K full-time employees. These structural characteristics shape how ANDE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates ANDE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ANDE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ANDE?
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 ANDE snapshot
As of June 29, 2026, spot at $67.84, ATM IV 33.30%, IV rank 2.46%, expected move 9.55%. The butterfly on ANDE 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 18-day expiry.
Why this butterfly structure on ANDE specifically: ANDE IV at 33.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a ANDE butterfly, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $6.48 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ANDE expiries trade a higher absolute premium for lower per-day decay. Position sizing on ANDE should anchor to the underlying notional of $67.84 per share and to the trader's directional view on ANDE stock.
ANDE butterfly setup
The ANDE 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 ANDE near $67.84, the first option leg uses a $64.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ANDE chain at a 18-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 ANDE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $64.45 | N/A |
| Sell 2 | Call | $67.84 | N/A |
| Buy 1 | Call | $71.23 | N/A |
ANDE 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.
ANDE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ANDE. 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 ANDE
Butterflies on ANDE are pinning bets - traders use them when they expect ANDE 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.
ANDE thesis for this butterfly
The market-implied 1-standard-deviation range for ANDE extends from approximately $61.36 on the downside to $74.32 on the upside. A ANDE long call butterfly is a pinning play: it pays maximum at the middle strike if ANDE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ANDE IV rank near 2.46% 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 ANDE at 33.30%. As a Consumer Defensive name, ANDE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ANDE-specific events.
ANDE 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. ANDE positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ANDE alongside the broader basket even when ANDE-specific fundamentals are unchanged. Always rebuild the position from current ANDE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ANDE?
- A butterfly on ANDE is the butterfly strategy applied to ANDE (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 ANDE stock trading near $67.84, the strikes shown on this page are snapped to the nearest listed ANDE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ANDE 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 ANDE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.30%), 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 ANDE butterfly?
- The breakeven for the ANDE 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 ANDE market-implied 1-standard-deviation expected move is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ANDE?
- Butterflies on ANDE are pinning bets - traders use them when they expect ANDE 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 ANDE implied volatility affect this butterfly?
- ANDE ATM IV is at 33.30% with IV rank near 2.46%, 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.