USAS Butterfly Strategy
USAS (Americas Gold and Silver Corporation), in the Basic Materials sector, (Industrial Materials industry), listed on AMEX.
Americas Gold and Silver Corporation, operating with its various subsidiary entities, focuses on the entire lifecycle of mineral properties throughout North America, from acquisition and exploration to development and operation. The company's efforts are directed toward discovering and extracting deposits of silver, lead, zinc, copper, and gold. Its portfolio includes significant assets in Mexico, where it maintains a 100% ownership of the Cosalá Operations, encompassing 67 mining concessions spread across roughly 19,385 hectares in the state of Sinaloa. The company is also developing the San Felipe project, situated in Sonora, Mexico. Within the United States, Americas Gold and Silver holds a 60% interest in the Galena Complex, located in Idaho's northern Silver Valley, and fully controls (100% interest) the Relief Canyon mine in Pershing County, Nevada. Founded in 1998, the firm was initially named Americas Silver Corporation, changing to its current designation, Americas Gold and Silver Corporation, in September 2019.
USAS (Americas Gold and Silver Corporation) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $1.75B, a beta of 2.20 versus the broader market, a 52-week range of 2.175-10.5, average daily share volume of 4.7M, a public-listing history dating back to 2003, approximately 659 full-time employees. These structural characteristics shape how USAS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.20 indicates USAS 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 USAS?
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.
USAS snapshot
As of August 14, 2026, spot at $5.24, ATM IV 85.80%, IV rank 21.53%, expected move 24.60%. The butterfly on USAS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this butterfly structure on USAS specifically: USAS IV at 85.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a USAS butterfly, with a market-implied 1-standard-deviation move of approximately 24.60% (roughly $1.29 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated USAS expiries trade a higher absolute premium for lower per-day decay. Position sizing on USAS should anchor to the underlying notional of $5.24 per share and to the trader's directional view on USAS stock.
USAS butterfly setup
The USAS butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With USAS at $5.24 on that close, the first option leg uses a $4.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed USAS chain at a 7-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 USAS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.98 | N/A |
| Sell 2 | Call | $5.24 | N/A |
| Buy 1 | Call | $5.50 | N/A |
USAS 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.
USAS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on USAS. 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 USAS
Butterflies on USAS are pinning bets - traders use them when they expect USAS 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.
USAS thesis for this butterfly
The market-implied 1-standard-deviation range for USAS extends from approximately $3.95 on the downside to $6.53 on the upside. A USAS long call butterfly is a pinning play: it pays maximum at the middle strike if USAS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current USAS IV rank near 21.53% 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 USAS at 85.80%. As a Basic Materials name, USAS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USAS-specific events.
USAS 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. USAS positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move USAS alongside the broader basket even when USAS-specific fundamentals are unchanged. Always rebuild the position from current USAS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on USAS?
- A butterfly on USAS is the butterfly strategy applied to USAS (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 USAS stock at $5.24 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed USAS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are USAS 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 USAS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 85.80%), 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 USAS butterfly?
- The breakeven for the USAS butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 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 USAS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on USAS?
- Butterflies on USAS are pinning bets - traders use them when they expect USAS 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 USAS implied volatility affect this butterfly?
- USAS ATM IV is at 85.80% with IV rank near 21.53%, 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.