ARQQ Butterfly Strategy
ARQQ (Arqit Quantum Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. It offers QuantumCloud, a Platform as a Service that creates unbreakable software encryption keys. The company also provides maintenance and support, and professional services. Arqit Quantum Inc. is based in London, the United Kingdom.
ARQQ (Arqit Quantum Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $256.9M, a beta of 2.28 versus the broader market, a 52-week range of 11.52-31.75, average daily share volume of 326K, a public-listing history dating back to 2021, approximately 87 full-time employees. These structural characteristics shape how ARQQ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.28 indicates ARQQ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on ARQQ?
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.
ARQQ snapshot
As of November 13, 2026, spot at $14.66, ATM IV 114.00%, IV rank 34.28%, expected move 32.68%. The butterfly on ARQQ below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.
Why this butterfly structure on ARQQ specifically: ARQQ IV at 114.00% 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 32.68% (roughly $4.79 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ARQQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARQQ should anchor to the underlying notional of $14.66 per share and to the trader's directional view on ARQQ stock.
ARQQ butterfly setup
The ARQQ butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ARQQ at $14.66 on that close, the first option leg uses a $13.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARQQ chain at a 63-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 ARQQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.93 | N/A |
| Sell 2 | Call | $14.66 | N/A |
| Buy 1 | Call | $15.39 | N/A |
ARQQ 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.
ARQQ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ARQQ. 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 ARQQ
Butterflies on ARQQ are pinning bets - traders use them when they expect ARQQ 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.
ARQQ thesis for this butterfly
The market-implied 1-standard-deviation range for ARQQ extends from approximately $9.87 on the downside to $19.45 on the upside. A ARQQ long call butterfly is a pinning play: it pays maximum at the middle strike if ARQQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ARQQ IV rank near 34.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ARQQ should anchor more to the directional view and the expected-move geometry. As a Technology name, ARQQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARQQ-specific events.
ARQQ 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. ARQQ positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARQQ alongside the broader basket even when ARQQ-specific fundamentals are unchanged. Always rebuild the position from current ARQQ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ARQQ?
- A butterfly on ARQQ is the butterfly strategy applied to ARQQ (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 ARQQ stock at $14.66 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed ARQQ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ARQQ 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 ARQQ butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 114.00%), 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 ARQQ butterfly?
- The breakeven for the ARQQ butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the November 13, 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 ARQQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ARQQ?
- Butterflies on ARQQ are pinning bets - traders use them when they expect ARQQ 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 ARQQ implied volatility affect this butterfly?
- ARQQ ATM IV is at 114.00% with IV rank near 34.28%, 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.