ATLO Butterfly Strategy
ATLO (Ames National Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Ames National Corporation operates as a multi-bank holding company that provides banking products and services primarily in Boone, Clarke, Hancock, Marshall, Polk, Story, Taylor, and Union Counties in central, north-central, and south-central Iowa. It accepts various deposit products, including checking and savings accounts; and time deposits, such as money market accounts and certificates of deposit. The company also provides loans, such as short-term and medium-term commercial, multi-family and agricultural real estate, residential real estate loans, equipment, vehicle, and home improvement loans; consumer loans to finance consumer purchases, such as automobiles, trucks, recreational vehicles, household furnishings, boats, personal loans, and lines of credit; agricultural and business operating loans and lines of credit; and originates mortgage loans for sale into the secondary market. In addition, it offers cash management, merchant credit card processing, safe deposit box, wire transfer, direct deposit, and automated/video teller machine access services; and automatic drafts for various accounts, as well as wealth management services. Further, it provides farm management, investment, and custodial services for individuals, businesses, and non-profit organizations; and online, mobile, and private banking services. Ames National Corporation was founded in 1903 and is headquartered in Ames, Iowa.
ATLO (Ames National Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $279.9M, a trailing P/E of 12.19, a beta of 0.30 versus the broader market, a 52-week range of 18.93-32.23, average daily share volume of 66K, a public-listing history dating back to 2000, approximately 260 full-time employees. These structural characteristics shape how ATLO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.30 indicates ATLO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ATLO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ATLO?
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.
ATLO snapshot
As of August 14, 2026, spot at $31.79, ATM IV 38.20%, IV rank 6.92%, expected move 10.95%. The butterfly on ATLO 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 ATLO specifically: ATLO IV at 38.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ATLO butterfly, with a market-implied 1-standard-deviation move of approximately 10.95% (roughly $3.48 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 ATLO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ATLO should anchor to the underlying notional of $31.79 per share and to the trader's directional view on ATLO stock.
ATLO butterfly setup
The ATLO 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 ATLO at $31.79 on that close, the first option leg uses a $30.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ATLO 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 ATLO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $30.20 | N/A |
| Sell 2 | Call | $31.79 | N/A |
| Buy 1 | Call | $33.38 | N/A |
ATLO 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.
ATLO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ATLO. 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 ATLO
Butterflies on ATLO are pinning bets - traders use them when they expect ATLO 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.
ATLO thesis for this butterfly
The market-implied 1-standard-deviation range for ATLO extends from approximately $28.31 on the downside to $35.27 on the upside. A ATLO long call butterfly is a pinning play: it pays maximum at the middle strike if ATLO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ATLO IV rank near 6.92% 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 ATLO at 38.20%. As a Financial Services name, ATLO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ATLO-specific events.
ATLO 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. ATLO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ATLO alongside the broader basket even when ATLO-specific fundamentals are unchanged. Always rebuild the position from current ATLO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ATLO?
- A butterfly on ATLO is the butterfly strategy applied to ATLO (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 ATLO stock at $31.79 on the most recent close, the strikes shown on this page are snapped to the nearest listed ATLO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ATLO 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 ATLO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.20%), 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 ATLO butterfly?
- The breakeven for the ATLO 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 ATLO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ATLO?
- Butterflies on ATLO are pinning bets - traders use them when they expect ATLO 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 ATLO implied volatility affect this butterfly?
- ATLO ATM IV is at 38.20% with IV rank near 6.92%, 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.