APLE Butterfly Strategy
APLE (Apple Hospitality REIT, Inc.), in the Real Estate sector, (REIT - Hotel & Motel industry), listed on NYSE.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 235 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. Concentrated with industry-leading brands, the Company's portfolio consists of 104 Marriott-branded hotels, 126 Hilton-branded hotels, three Hyatt-branded hotels and two independent hotels.
APLE (Apple Hospitality REIT, Inc.) trades in the Real Estate sector, specifically REIT - Hotel & Motel, with a market capitalization of approximately $3.26B, a trailing P/E of 18.96, a beta of 0.88 versus the broader market, a 52-week range of 10.85-14.194, average daily share volume of 3.7M, a public-listing history dating back to 2015, approximately 65 full-time employees. These structural characteristics shape how APLE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places APLE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. APLE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on APLE?
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 APLE snapshot
As of May 15, 2026, spot at $13.77, ATM IV 193.80%, IV rank 42.19%, expected move 4.06%. The butterfly on APLE 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 APLE specifically: APLE IV at 193.80% 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 4.06% (roughly $0.56 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 APLE expiries trade a higher absolute premium for lower per-day decay. Position sizing on APLE should anchor to the underlying notional of $13.77 per share and to the trader's directional view on APLE stock.
APLE butterfly setup
The APLE 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 APLE near $13.77, the first option leg uses a $13.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed APLE 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 APLE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.08 | N/A |
| Sell 2 | Call | $13.77 | N/A |
| Buy 1 | Call | $14.46 | N/A |
APLE 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.
APLE butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on APLE. 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 APLE
Butterflies on APLE are pinning bets - traders use them when they expect APLE 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.
APLE thesis for this butterfly
The market-implied 1-standard-deviation range for APLE extends from approximately $13.21 on the downside to $14.33 on the upside. A APLE long call butterfly is a pinning play: it pays maximum at the middle strike if APLE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current APLE IV rank near 42.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on APLE should anchor more to the directional view and the expected-move geometry. As a Real Estate name, APLE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to APLE-specific events.
APLE 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. APLE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move APLE alongside the broader basket even when APLE-specific fundamentals are unchanged. Always rebuild the position from current APLE chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on APLE?
- A butterfly on APLE is the butterfly strategy applied to APLE (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 APLE stock trading near $13.77, the strikes shown on this page are snapped to the nearest listed APLE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are APLE 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 APLE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 193.80%), 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 APLE butterfly?
- The breakeven for the APLE 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 APLE market-implied 1-standard-deviation expected move is approximately 4.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on APLE?
- Butterflies on APLE are pinning bets - traders use them when they expect APLE 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 APLE implied volatility affect this butterfly?
- APLE ATM IV is at 193.80% with IV rank near 42.19%, 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.