WIMI Butterfly Strategy
WIMI (WiMi Hologram Cloud Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
WiMi Hologram Cloud Inc., established in 2015 and headquartered in Beijing, China, is a technology company specializing in augmented reality (AR) holographic products and services for the Chinese market. The company's operations are divided into three core segments: AR Advertising Services, AR Entertainment, and Semiconductor-Related Products and Services. Within its AR advertising division, WiMi delivers holographic advertising solutions. This includes specialized software that allows users to seamlessly integrate realistic or animated three-dimensional objects into video content. Furthermore, their online holographic AR advertising platform facilitates the embedding of AR commercials directly into films and television programs. For the entertainment sector, WiMi provides a range of holographic AR products.
WIMI (WiMi Hologram Cloud Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $66.8M, a trailing P/E of 0.12, a beta of 0.37 versus the broader market, a 52-week range of 1.07-5.65, average daily share volume of 183K, a public-listing history dating back to 2020, approximately 86 full-time employees. These structural characteristics shape how WIMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.37 indicates WIMI 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 0.12 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on WIMI?
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.
WIMI snapshot
As of August 14, 2026, spot at $1.35, ATM IV 26.50%, IV rank 6.01%, expected move 7.60%. The butterfly on WIMI 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 WIMI specifically: WIMI IV at 26.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a WIMI butterfly, with a market-implied 1-standard-deviation move of approximately 7.60% (roughly $0.10 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 WIMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WIMI should anchor to the underlying notional of $1.35 per share and to the trader's directional view on WIMI stock.
WIMI butterfly setup
The WIMI 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 WIMI at $1.35 on that close, the first option leg uses a $1.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WIMI 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 WIMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.28 | N/A |
| Sell 2 | Call | $1.35 | N/A |
| Buy 1 | Call | $1.42 | N/A |
WIMI 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.
WIMI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WIMI. 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 WIMI
Butterflies on WIMI are pinning bets - traders use them when they expect WIMI 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.
WIMI thesis for this butterfly
The market-implied 1-standard-deviation range for WIMI extends from approximately $1.25 on the downside to $1.45 on the upside. A WIMI long call butterfly is a pinning play: it pays maximum at the middle strike if WIMI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WIMI IV rank near 6.01% 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 WIMI at 26.50%. As a Technology name, WIMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WIMI-specific events.
WIMI 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. WIMI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WIMI alongside the broader basket even when WIMI-specific fundamentals are unchanged. Always rebuild the position from current WIMI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WIMI?
- A butterfly on WIMI is the butterfly strategy applied to WIMI (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 WIMI stock at $1.35 on the most recent close, the strikes shown on this page are snapped to the nearest listed WIMI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WIMI 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 WIMI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.50%), 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 WIMI butterfly?
- The breakeven for the WIMI 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 WIMI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WIMI?
- Butterflies on WIMI are pinning bets - traders use them when they expect WIMI 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 WIMI implied volatility affect this butterfly?
- WIMI ATM IV is at 26.50% with IV rank near 6.01%, 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.