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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $439.95 per contract and the computed maximum loss is -$245.00 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 $119.45 and $128.55 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 AIRR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; 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 24.70% with IV rank near 2.69%, 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.

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 $10.73B, a beta of 1.28 versus the broader market, a 52-week range of 87.67-135.05, average daily share volume of 726K, 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 1.28 places AIRR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. 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.

AIRR snapshot

As of August 14, 2026, spot at $124.47, ATM IV 24.70%, IV rank 2.69%, expected move 7.08%. The butterfly on AIRR 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 35-day expiry.

Why this butterfly structure on AIRR specifically: AIRR IV at 24.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIRR butterfly, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $8.81 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 AIRR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIRR should anchor to the underlying notional of $124.47 per share and to the trader's directional view on AIRR etf.

AIRR butterfly setup

The AIRR 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 AIRR at $124.47 on that close, the first option leg uses a $118.00 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 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 AIRR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$118.00	$7.40
Sell 2	Call	$124.00	$3.55
Buy 1	Call	$131.00	$1.15

AIRR butterfly risk and reward

Net Premium / Debit: -$145.00
Max Profit (per contract): $439.95
Max Loss (per contract): -$245.00
Breakeven(s): $119.45, $128.55
Risk / Reward Ratio: 1.796

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%	-$145.00
$27.53	-77.9%	-$145.00
$55.05	-55.8%	-$145.00
$82.57	-33.7%	-$145.00
$110.09	-11.6%	-$145.00
$137.61	+10.6%	-$245.00
$165.13	+32.7%	-$245.00
$192.65	+54.8%	-$245.00
$220.17	+76.9%	-$245.00
$247.69	+99.0%	-$245.00

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 $115.66 on the downside to $133.28 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 2.69% 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 AIRR at 24.70%. 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 at $124.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIRR chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $439.95 per contract and the computed maximum loss is -$245.00 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 $119.45 and $128.55 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 AIRR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.08%; 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 24.70% with IV rank near 2.69%, 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.