How are ARTY 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 ARTY butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.10%), the computed maximum profit is $186.76 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ARTY butterfly?

The breakeven for the ARTY butterfly priced on this page is roughly $79.15 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 ARTY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ARTY implied volatility affect this butterfly?

ARTY ATM IV is at 36.10% with IV rank near 38.36%, 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.

ARTY Butterfly Strategy

ARTY (iShares Future AI & Tech ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The iShares Future AI & Tech ETF aims to deliver investment results that correspond to an index. This index is composed of companies operating both within the U.S. and internationally. These firms are recognized for their contributions to artificial intelligence (AI) technologies, specifically through products and services. Their activities encompass crucial AI segments such as generative AI, AI data and infrastructure, AI software, and AI services.

ARTY (iShares Future AI & Tech ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.98B, a beta of 2.06 versus the broader market, a 52-week range of 40.565-81.85, average daily share volume of 771K, a public-listing history dating back to 2018. These structural characteristics shape how ARTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.06 indicates ARTY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ARTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ARTY?

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.

ARTY snapshot

As of August 14, 2026, spot at $77.10, ATM IV 36.10%, IV rank 38.36%, expected move 10.35%. The butterfly on ARTY 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 ARTY specifically: ARTY IV at 36.10% 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 10.35% (roughly $7.98 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 ARTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARTY should anchor to the underlying notional of $77.10 per share and to the trader's directional view on ARTY etf.

ARTY butterfly setup

The ARTY 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 ARTY at $77.10 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARTY 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 ARTY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$5.45
Sell 2	Call	$77.00	$4.30
Buy 1	Call	$81.00	$3.00

ARTY butterfly risk and reward

Net Premium / Debit: +$15.00
Max Profit (per contract): $186.76
Max Loss (per contract): -$185.00
Breakeven(s): $79.15
Risk / Reward Ratio: 1.010

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.

ARTY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ARTY. 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%	+$15.00
$17.06	-77.9%	+$15.00
$34.10	-55.8%	+$15.00
$51.15	-33.7%	+$15.00
$68.19	-11.6%	+$15.00
$85.24	+10.6%	-$185.00
$102.29	+32.7%	-$185.00
$119.33	+54.8%	-$185.00
$136.38	+76.9%	-$185.00
$153.43	+99.0%	-$185.00

When traders use butterfly on ARTY

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

ARTY thesis for this butterfly

The market-implied 1-standard-deviation range for ARTY extends from approximately $69.12 on the downside to $85.08 on the upside. A ARTY long call butterfly is a pinning play: it pays maximum at the middle strike if ARTY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ARTY IV rank near 38.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ARTY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ARTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARTY-specific events.

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

Frequently asked questions

What is a butterfly on ARTY?: A butterfly on ARTY is the butterfly strategy applied to ARTY (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 ARTY etf at $77.10 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ARTY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ARTY 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 ARTY butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.10%), the computed maximum profit is $186.76 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ARTY butterfly?: The breakeven for the ARTY butterfly priced on this page is roughly $79.15 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 ARTY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ARTY?: Butterflies on ARTY are pinning bets - traders use them when they expect ARTY 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 ARTY implied volatility affect this butterfly?: ARTY ATM IV is at 36.10% with IV rank near 38.36%, 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.