How are AIRR 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 AIRR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is $385.64 per contract and the computed maximum loss is -$254.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIRR butterfly?

The breakeven for the AIRR butterfly priced on this page is roughly $128.54 and $137.46 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 AIRR market-implied 1-standard-deviation expected move is approximately 8.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIRR implied volatility affect this butterfly?

AIRR ATM IV is at 28.20% with IV rank near 44.95%, 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.

AIRR Butterfly Strategy

AIRR (First Trust RBA American Industrial RenaissanceTM ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

AIRR is passively managed to select large- and midcap US companies from the Russel 2500 with the following industries: Commercial Services & Supplies, Construction & Engineering, Electrical Equipment, Machinery, and Banks. Firms must also have a positive 12-months forward earnings consensus estimate to be considered in the index. AIRR excludes community banks outside traditional mid-western manufacturing hubs, like Pennsylvania, Wisconsin, Michigan, Ohio, Illinois, Indiana and Iowa. Firms with non-US sales of more than 25% are also excluded. The index is weighted using proprietary portfolio optimization method and ensures that Banks will have a 10% sector cap and issuers will not exceed a 4% weight. The Index is reconstituted and rebalanced quarterly.

AIRR (First Trust RBA American Industrial RenaissanceTM ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.15B, a beta of 1.48 versus the broader market, a 52-week range of 80.97-135.05, average daily share volume of 746K, a public-listing history dating back to 2014, approximately 107 full-time employees. These structural characteristics shape how AIRR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.48 indicates AIRR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AIRR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AIRR?

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 AIRR snapshot

As of June 30, 2026, spot at $133.06, ATM IV 28.20%, IV rank 44.95%, expected move 8.08%. The butterfly on AIRR 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 17-day expiry.

Why this butterfly structure on AIRR specifically: AIRR IV at 28.20% 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 8.08% (roughly $10.76 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIRR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIRR should anchor to the underlying notional of $133.06 per share and to the trader's directional view on AIRR etf.

AIRR butterfly setup

The AIRR 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 AIRR near $133.06, the first option leg uses a $126.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIRR chain at a 17-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 AIRR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$126.00	$7.90
Sell 2	Call	$133.00	$3.03
Buy 1	Call	$140.00	$0.69

AIRR butterfly risk and reward

Net Premium / Debit: -$254.00
Max Profit (per contract): $385.64
Max Loss (per contract): -$254.00
Breakeven(s): $128.54, $137.46
Risk / Reward Ratio: 1.518

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.

AIRR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AIRR. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$254.00
$29.43	-77.9%	-$254.00
$58.85	-55.8%	-$254.00
$88.27	-33.7%	-$254.00
$117.69	-11.6%	-$254.00
$147.11	+10.6%	-$254.00
$176.53	+32.7%	-$254.00
$205.94	+54.8%	-$254.00
$235.36	+76.9%	-$254.00
$264.78	+99.0%	-$254.00

When traders use butterfly on AIRR

Butterflies on AIRR are pinning bets - traders use them when they expect AIRR 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.

AIRR thesis for this butterfly

The market-implied 1-standard-deviation range for AIRR extends from approximately $122.30 on the downside to $143.82 on the upside. A AIRR long call butterfly is a pinning play: it pays maximum at the middle strike if AIRR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AIRR IV rank near 44.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AIRR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AIRR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIRR-specific events.

AIRR 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. AIRR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIRR alongside the broader basket even when AIRR-specific fundamentals are unchanged. Always rebuild the position from current AIRR chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on AIRR?: A butterfly on AIRR is the butterfly strategy applied to AIRR (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 AIRR etf trading near $133.06, the strikes shown on this page are snapped to the nearest listed AIRR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AIRR 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 AIRR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is $385.64 per contract and the computed maximum loss is -$254.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIRR butterfly?: The breakeven for the AIRR butterfly priced on this page is roughly $128.54 and $137.46 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 AIRR market-implied 1-standard-deviation expected move is approximately 8.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AIRR?: Butterflies on AIRR are pinning bets - traders use them when they expect AIRR 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 AIRR implied volatility affect this butterfly?: AIRR ATM IV is at 28.20% with IV rank near 44.95%, 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.