How are ARKQ 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 ARKQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.30%), the computed maximum profit is $456.01 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ARKQ butterfly?

The breakeven for the ARKQ butterfly priced on this page is roughly $127.10 and $136.90 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 ARKQ market-implied 1-standard-deviation expected move is approximately 9.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ARKQ implied volatility affect this butterfly?

ARKQ ATM IV is at 34.30% with IV rank near 43.28%, 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.

ARKQ Butterfly Strategy

ARKQ (ARK Autonomous Technology & Robotics ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

ARK ETF Trust - ARK Autonomous Technology & Robotics ETF is an exchange traded fund launched and managed by ARK Investment Management LLC. It invests in public equity markets of global region. The fund invests in stocks of companies operating across autonomous technology and robotics companies, information technology sectors includes focus on and benefit from the development of new products or services, technological improvements and advancements in scientific research related to, among other things, disruptive innovation in automation and manufacturing, (“Automation Transformation Companies”), transportation, energy (“Energy Transformation Companies”), artificial intelligence (“Artificial Intelligence Companies”) and materials. It invests in growth and value stocks of companies across diversified market capitalization. It invests in stocks of companies that are deemed socially conscious in their business dealings and directly promote environmental responsibility. The fund employs fundamental and quantitative analysis with bottom-up and top-down stock picking approach to create its portfolio.

ARKQ (ARK Autonomous Technology & Robotics ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.84B, a beta of 1.72 versus the broader market, a 52-week range of 85.995-144.416, average daily share volume of 206K, a public-listing history dating back to 2014. These structural characteristics shape how ARKQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.72 indicates ARKQ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ARKQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ARKQ?

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 ARKQ snapshot

As of June 30, 2026, spot at $132.32, ATM IV 34.30%, IV rank 43.28%, expected move 9.83%. The butterfly on ARKQ 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 ARKQ specifically: ARKQ IV at 34.30% 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 9.83% (roughly $13.01 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 ARKQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARKQ should anchor to the underlying notional of $132.32 per share and to the trader's directional view on ARKQ etf.

ARKQ butterfly setup

The ARKQ 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 ARKQ near $132.32, 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 ARKQ 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 ARKQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$126.00	$7.40
Sell 2	Call	$132.00	$3.65
Buy 1	Call	$139.00	$1.00

ARKQ butterfly risk and reward

Net Premium / Debit: -$110.00
Max Profit (per contract): $456.01
Max Loss (per contract): -$210.00
Breakeven(s): $127.10, $136.90
Risk / Reward Ratio: 2.171

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.

ARKQ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ARKQ. 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%	-$110.00
$29.27	-77.9%	-$110.00
$58.52	-55.8%	-$110.00
$87.78	-33.7%	-$110.00
$117.03	-11.6%	-$110.00
$146.29	+10.6%	-$210.00
$175.54	+32.7%	-$210.00
$204.80	+54.8%	-$210.00
$234.05	+76.9%	-$210.00
$263.31	+99.0%	-$210.00

When traders use butterfly on ARKQ

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

ARKQ thesis for this butterfly

The market-implied 1-standard-deviation range for ARKQ extends from approximately $119.31 on the downside to $145.33 on the upside. A ARKQ long call butterfly is a pinning play: it pays maximum at the middle strike if ARKQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ARKQ IV rank near 43.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ARKQ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ARKQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARKQ-specific events.

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

Frequently asked questions

What is a butterfly on ARKQ?: A butterfly on ARKQ is the butterfly strategy applied to ARKQ (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 ARKQ etf trading near $132.32, the strikes shown on this page are snapped to the nearest listed ARKQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ARKQ 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 ARKQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 34.30%), the computed maximum profit is $456.01 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ARKQ butterfly?: The breakeven for the ARKQ butterfly priced on this page is roughly $127.10 and $136.90 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 ARKQ market-implied 1-standard-deviation expected move is approximately 9.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ARKQ?: Butterflies on ARKQ are pinning bets - traders use them when they expect ARKQ 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 ARKQ implied volatility affect this butterfly?: ARKQ ATM IV is at 34.30% with IV rank near 43.28%, 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.