ASIX Butterfly Strategy
ASIX (AdvanSix Inc.), in the Basic Materials sector, (Chemicals industry), listed on NYSE.
AdvanSix Inc. manufactures and sells polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, alpha-methyl styrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capra, Sulf-N, Nadone, Naxol, and EZ-Blox brands. The company sells its products directly, as well as through distributors. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.
ASIX (AdvanSix Inc.) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $603.1M, a trailing P/E of 58.06, a beta of 1.33 versus the broader market, a 52-week range of 14.1-26.73, average daily share volume of 481K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how ASIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates ASIX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 58.06 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. ASIX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ASIX?
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 ASIX snapshot
As of May 15, 2026, spot at $21.72, ATM IV 55.70%, IV rank 21.05%, expected move 15.97%. The butterfly on ASIX 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 ASIX specifically: ASIX IV at 55.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a ASIX butterfly, with a market-implied 1-standard-deviation move of approximately 15.97% (roughly $3.47 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 ASIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on ASIX should anchor to the underlying notional of $21.72 per share and to the trader's directional view on ASIX stock.
ASIX butterfly setup
The ASIX 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 ASIX near $21.72, the first option leg uses a $20.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ASIX 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 ASIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.63 | N/A |
| Sell 2 | Call | $21.72 | N/A |
| Buy 1 | Call | $22.81 | N/A |
ASIX 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.
ASIX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ASIX. 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 ASIX
Butterflies on ASIX are pinning bets - traders use them when they expect ASIX 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.
ASIX thesis for this butterfly
The market-implied 1-standard-deviation range for ASIX extends from approximately $18.25 on the downside to $25.19 on the upside. A ASIX long call butterfly is a pinning play: it pays maximum at the middle strike if ASIX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ASIX IV rank near 21.05% 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 ASIX at 55.70%. As a Basic Materials name, ASIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ASIX-specific events.
ASIX 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. ASIX positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ASIX alongside the broader basket even when ASIX-specific fundamentals are unchanged. Always rebuild the position from current ASIX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ASIX?
- A butterfly on ASIX is the butterfly strategy applied to ASIX (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 ASIX stock trading near $21.72, the strikes shown on this page are snapped to the nearest listed ASIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ASIX 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 ASIX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.70%), 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 ASIX butterfly?
- The breakeven for the ASIX 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 ASIX market-implied 1-standard-deviation expected move is approximately 15.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ASIX?
- Butterflies on ASIX are pinning bets - traders use them when they expect ASIX 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 ASIX implied volatility affect this butterfly?
- ASIX ATM IV is at 55.70% with IV rank near 21.05%, 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.