AUGO Butterfly Strategy
AUGO (Aura Minerals), in the Basic Materials sector, (Other Precious Metals industry), listed on NASDAQ.
Aura Minerals Inc. is a company primarily engaged in the production of gold and copper, focusing its efforts on developing and managing various gold and other base metal mining ventures throughout the Americas. Its operational footprint spans several key segments, including the Minosa, Apoena, and Aranzazu Mines, alongside the Almas and Borborema Projects, complemented by its corporate division. The company's core exploration activities are directed towards identifying deposits rich in gold, copper, and silver. Founded in 1946, it initially operated under the name Aura Gold Inc. before officially rebranding to Aura Minerals Inc. in July 2007. Its principal office is situated in Coconut Grove, Florida.
AUGO (Aura Minerals) trades in the Basic Materials sector, specifically Other Precious Metals, with a market capitalization of approximately $5.37B, a trailing P/E of 58.76, a beta of 0.21 versus the broader market, a 52-week range of 22.243-110.321, average daily share volume of 1.0M, a public-listing history dating back to 2025, approximately 1K full-time employees. These structural characteristics shape how AUGO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.21 indicates AUGO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 58.76 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. AUGO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AUGO?
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 AUGO snapshot
As of June 30, 2026, spot at $62.84, ATM IV 56.50%, IV rank 0.00%, expected move 16.20%. The butterfly on AUGO 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 52-day expiry.
Why this butterfly structure on AUGO specifically: AUGO IV at 56.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a AUGO butterfly, with a market-implied 1-standard-deviation move of approximately 16.20% (roughly $10.18 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AUGO expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUGO should anchor to the underlying notional of $62.84 per share and to the trader's directional view on AUGO stock.
AUGO butterfly setup
The AUGO 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 AUGO near $62.84, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUGO chain at a 52-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 AUGO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $60.00 | $7.10 |
| Sell 2 | Call | $65.00 | $6.15 |
| Buy 1 | Call | $65.00 | $6.15 |
AUGO butterfly risk and reward
- Net Premium / Debit
- -$95.00
- Max Profit (per contract)
- $405.00
- Max Loss (per contract)
- -$95.00
- Breakeven(s)
- $60.95
- Risk / Reward Ratio
- 4.263
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.
AUGO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AUGO. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$95.00 |
| $13.90 | -77.9% | -$95.00 |
| $27.80 | -55.8% | -$95.00 |
| $41.69 | -33.7% | -$95.00 |
| $55.58 | -11.5% | -$95.00 |
| $69.48 | +10.6% | +$405.00 |
| $83.37 | +32.7% | +$405.00 |
| $97.26 | +54.8% | +$405.00 |
| $111.16 | +76.9% | +$405.00 |
| $125.05 | +99.0% | +$405.00 |
When traders use butterfly on AUGO
Butterflies on AUGO are pinning bets - traders use them when they expect AUGO 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.
AUGO thesis for this butterfly
The market-implied 1-standard-deviation range for AUGO extends from approximately $52.66 on the downside to $73.02 on the upside. A AUGO long call butterfly is a pinning play: it pays maximum at the middle strike if AUGO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AUGO IV rank near 0.00% 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 AUGO at 56.50%. As a Basic Materials name, AUGO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUGO-specific events.
AUGO 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. AUGO positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUGO alongside the broader basket even when AUGO-specific fundamentals are unchanged. Always rebuild the position from current AUGO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AUGO?
- A butterfly on AUGO is the butterfly strategy applied to AUGO (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 AUGO stock trading near $62.84, the strikes shown on this page are snapped to the nearest listed AUGO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AUGO 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 AUGO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.50%), the computed maximum profit is $405.00 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AUGO butterfly?
- The breakeven for the AUGO butterfly priced on this page is roughly $60.95 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 AUGO market-implied 1-standard-deviation expected move is approximately 16.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AUGO?
- Butterflies on AUGO are pinning bets - traders use them when they expect AUGO 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 AUGO implied volatility affect this butterfly?
- AUGO ATM IV is at 56.50% with IV rank near 0.00%, 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.