KIDZ Butterfly Strategy
KIDZ (KIDZ AI Inc.), in the Consumer Defensive sector, (Education & Training Services industry), listed on NASDAQ.
KIDZ AI Inc., a technology-driven education company, operates an online enrichment class platform for children aged 4 to 17. The company’s platform offers various enrichment programs, including language, science, technology, engineering, arts, mathematics, music, and others. In addition it focuses on AI compute infrastructure, GPU cloud platforms, and data center ecosystems. The company was formerly known as Classover Holdings, Inc. and changed its name to KIDZ AI Inc. in May 2026. KIDZ AI Inc., was founded in 2020 and is headquartered in New York, New York.
KIDZ (KIDZ AI Inc.) trades in the Consumer Defensive sector, specifically Education & Training Services, with a market capitalization of approximately $1.4M, a beta of -0.68 versus the broader market, a 52-week range of 3.85-21900, average daily share volume of 8.9M, a public-listing history dating back to 2025, approximately 11 full-time employees. These structural characteristics shape how KIDZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.68 indicates KIDZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on KIDZ?
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.
KIDZ snapshot
As of August 14, 2026, spot at $4.11, ATM IV 136.90%, IV rank 31.41%, expected move 39.25%. The butterfly on KIDZ 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 KIDZ specifically: KIDZ IV at 136.90% 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 39.25% (roughly $1.61 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 KIDZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on KIDZ should anchor to the underlying notional of $4.11 per share and to the trader's directional view on KIDZ stock.
KIDZ butterfly setup
The KIDZ 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 KIDZ at $4.11 on that close, the first option leg uses a $3.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KIDZ 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 KIDZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.90 | N/A |
| Sell 2 | Call | $4.11 | N/A |
| Buy 1 | Call | $4.32 | N/A |
KIDZ 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.
KIDZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on KIDZ. 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 KIDZ
Butterflies on KIDZ are pinning bets - traders use them when they expect KIDZ 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.
KIDZ thesis for this butterfly
The market-implied 1-standard-deviation range for KIDZ extends from approximately $2.50 on the downside to $5.72 on the upside. A KIDZ long call butterfly is a pinning play: it pays maximum at the middle strike if KIDZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KIDZ IV rank near 31.41% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on KIDZ should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, KIDZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KIDZ-specific events.
KIDZ 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. KIDZ positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KIDZ alongside the broader basket even when KIDZ-specific fundamentals are unchanged. Always rebuild the position from current KIDZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on KIDZ?
- A butterfly on KIDZ is the butterfly strategy applied to KIDZ (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 KIDZ stock at $4.11 on the most recent close, the strikes shown on this page are snapped to the nearest listed KIDZ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KIDZ 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 KIDZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 136.90%), 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 KIDZ butterfly?
- The breakeven for the KIDZ 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 KIDZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 39.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on KIDZ?
- Butterflies on KIDZ are pinning bets - traders use them when they expect KIDZ 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 KIDZ implied volatility affect this butterfly?
- KIDZ ATM IV is at 136.90% with IV rank near 31.41%, 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.