AGQ Butterfly Strategy
AGQ (ProShares - Ultra Silver), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra Silver seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Silver Subindex.
AGQ (ProShares - Ultra Silver) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.41B, a beta of 0.30 versus the broader market, a 52-week range of 38-431.47, average daily share volume of 4.6M, a public-listing history dating back to 2008. These structural characteristics shape how AGQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.30 indicates AGQ 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 AGQ?
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 AGQ snapshot
As of May 15, 2026, spot at $117.66, ATM IV 111.71%, IV rank 38.24%, expected move 32.03%. The butterfly on AGQ 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 28-day expiry.
Why this butterfly structure on AGQ specifically: AGQ IV at 111.71% 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 32.03% (roughly $37.68 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AGQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGQ should anchor to the underlying notional of $117.66 per share and to the trader's directional view on AGQ etf.
AGQ butterfly setup
The AGQ 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 AGQ near $117.66, the first option leg uses a $112.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGQ chain at a 28-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 AGQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $112.00 | $17.55 |
| Sell 2 | Call | $118.00 | $15.10 |
| Buy 1 | Call | $123.50 | $12.30 |
AGQ butterfly risk and reward
- Net Premium / Debit
- +$35.00
- Max Profit (per contract)
- $609.38
- Max Loss (per contract)
- $35.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 17.411
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.
AGQ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AGQ. 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% | +$35.00 |
| $26.02 | -77.9% | +$35.00 |
| $52.04 | -55.8% | +$35.00 |
| $78.05 | -33.7% | +$35.00 |
| $104.07 | -11.6% | +$35.00 |
| $130.08 | +10.6% | +$85.00 |
| $156.10 | +32.7% | +$85.00 |
| $182.11 | +54.8% | +$85.00 |
| $208.12 | +76.9% | +$85.00 |
| $234.14 | +99.0% | +$85.00 |
When traders use butterfly on AGQ
Butterflies on AGQ are pinning bets - traders use them when they expect AGQ 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.
AGQ thesis for this butterfly
The market-implied 1-standard-deviation range for AGQ extends from approximately $79.98 on the downside to $155.34 on the upside. A AGQ long call butterfly is a pinning play: it pays maximum at the middle strike if AGQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AGQ IV rank near 38.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AGQ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AGQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGQ-specific events.
AGQ 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. AGQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGQ alongside the broader basket even when AGQ-specific fundamentals are unchanged. Always rebuild the position from current AGQ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AGQ?
- A butterfly on AGQ is the butterfly strategy applied to AGQ (etf). 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 AGQ etf trading near $117.66, the strikes shown on this page are snapped to the nearest listed AGQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGQ 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 AGQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 111.71%), the computed maximum profit is $609.38 per contract and the computed maximum loss is $35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGQ butterfly?
- The breakeven for the AGQ butterfly priced on this page is no defined breakeven on the modeled curve 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 AGQ market-implied 1-standard-deviation expected move is approximately 32.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AGQ?
- Butterflies on AGQ are pinning bets - traders use them when they expect AGQ 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 AGQ implied volatility affect this butterfly?
- AGQ ATM IV is at 111.71% with IV rank near 38.24%, 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.