How are BLOX 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 BLOX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.50%), the computed maximum profit is $3.45 per contract and the computed maximum loss is -$93.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BLOX butterfly?

The breakeven for the BLOX butterfly priced on this page is roughly $12.94 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 BLOX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BLOX implied volatility affect this butterfly?

BLOX ATM IV is at 51.50% with IV rank near 61.52%, 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.

BLOX Butterfly Strategy

BLOX (Nicholas Crypto Income ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on AMEX.

The Nicholas Crypto Income ETF employs a three-pronged investment strategy. First, an Equity Portfolio allocates capital to the shares of companies whose primary business activities are centered in the digital asset sector, which the fund refers to as "Crypto Industry Companies." Secondly, a Crypto Portfolio seeks exposure to the price movements of major cryptocurrencies, specifically Bitcoin and Ether, by investing in selected, U.S.-listed exchange-traded funds (ETFs) and exchange-traded products (ETPs) designed to track these assets. Finally, an Options Overlay component is utilized to generate income through a dedicated options trading strategy. It is important to note that the fund is characterized as non-diversified.

BLOX (Nicholas Crypto Income ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $15.4M, a beta of 3.07 versus the broader market, a 52-week range of 11.93-28, average daily share volume of 363K, a public-listing history dating back to 2025. These structural characteristics shape how BLOX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.07 indicates BLOX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BLOX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on BLOX?

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.

BLOX snapshot

As of August 14, 2026, spot at $13.03, ATM IV 51.50%, IV rank 61.52%, expected move 14.76%. The butterfly on BLOX 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 BLOX specifically: BLOX IV at 51.50% 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 14.76% (roughly $1.92 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 BLOX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BLOX should anchor to the underlying notional of $13.03 per share and to the trader's directional view on BLOX etf.

BLOX butterfly setup

The BLOX 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 BLOX at $13.03 on that close, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BLOX 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 BLOX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$12.00	$1.68
Sell 2	Call	$13.00	$0.63
Buy 1	Call	$14.00	$0.51

BLOX butterfly risk and reward

Net Premium / Debit: -$93.50
Max Profit (per contract): $3.45
Max Loss (per contract): -$93.50
Breakeven(s): $12.94
Risk / Reward Ratio: 0.037

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.

BLOX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on BLOX. 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	-99.9%	-$93.50
$2.89	-77.8%	-$93.50
$5.77	-55.7%	-$93.50
$8.65	-33.6%	-$93.50
$11.53	-11.5%	-$93.50
$14.41	+10.6%	-$93.50
$17.29	+32.7%	-$93.50
$20.17	+54.8%	-$93.50
$23.05	+76.9%	-$93.50
$25.93	+99.0%	-$93.50

When traders use butterfly on BLOX

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

BLOX thesis for this butterfly

The market-implied 1-standard-deviation range for BLOX extends from approximately $11.11 on the downside to $14.95 on the upside. A BLOX long call butterfly is a pinning play: it pays maximum at the middle strike if BLOX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BLOX IV rank near 61.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BLOX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BLOX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BLOX-specific events.

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

Frequently asked questions

What is a butterfly on BLOX?: A butterfly on BLOX is the butterfly strategy applied to BLOX (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 BLOX etf at $13.03 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BLOX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BLOX 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 BLOX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.50%), the computed maximum profit is $3.45 per contract and the computed maximum loss is -$93.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BLOX butterfly?: The breakeven for the BLOX butterfly priced on this page is roughly $12.94 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 BLOX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BLOX?: Butterflies on BLOX are pinning bets - traders use them when they expect BLOX 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 BLOX implied volatility affect this butterfly?: BLOX ATM IV is at 51.50% with IV rank near 61.52%, 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.