How are BNGE 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 BNGE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.60%), the computed maximum profit is $157.10 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BNGE butterfly?

The breakeven for the BNGE butterfly priced on this page is roughly $31.58 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 BNGE market-implied 1-standard-deviation expected move is approximately 10.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BNGE implied volatility affect this butterfly?

BNGE ATM IV is at 35.60% with IV rank near 11.11%, 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.

BNGE Butterfly Strategy

BNGE (First Trust S-Network Streaming & Gaming ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The First Trust S-Network Streaming & Gaming ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the S-Network Streaming & Gaming Index (the "Index"). The Fund will normally invest at least 80% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is developed, maintained and sponsored by S-Network Global Indexes, Inc. (the "Index Provider"). The Index Provider retains the right at any time, upon prior written notice, to modify the Index methodology.

BNGE (First Trust S-Network Streaming & Gaming ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $6.7M, a beta of 1.02 versus the broader market, a 52-week range of 29.389-41.04, average daily share volume of 2K, a public-listing history dating back to 2022. These structural characteristics shape how BNGE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.02 places BNGE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BNGE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on BNGE?

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 BNGE snapshot

As of May 15, 2026, spot at $30.45, ATM IV 35.60%, IV rank 11.11%, expected move 10.21%. The butterfly on BNGE 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 34-day expiry.

Why this butterfly structure on BNGE specifically: BNGE IV at 35.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a BNGE butterfly, with a market-implied 1-standard-deviation move of approximately 10.21% (roughly $3.11 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BNGE expiries trade a higher absolute premium for lower per-day decay. Position sizing on BNGE should anchor to the underlying notional of $30.45 per share and to the trader's directional view on BNGE etf.

BNGE butterfly setup

The BNGE 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 BNGE near $30.45, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BNGE chain at a 34-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 BNGE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$29.00	$1.88
Sell 2	Call	$30.00	$1.59
Buy 1	Call	$32.00	$0.73

BNGE butterfly risk and reward

Net Premium / Debit: +$57.50
Max Profit (per contract): $157.10
Max Loss (per contract): -$42.50
Breakeven(s): $31.58
Risk / Reward Ratio: 3.697

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.

BNGE butterfly payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$57.50
$6.74	-77.9%	+$57.50
$13.47	-55.8%	+$57.50
$20.20	-33.6%	+$57.50
$26.94	-11.5%	+$57.50
$33.67	+10.6%	-$42.50
$40.40	+32.7%	-$42.50
$47.13	+54.8%	-$42.50
$53.86	+76.9%	-$42.50
$60.59	+99.0%	-$42.50

When traders use butterfly on BNGE

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

BNGE thesis for this butterfly

The market-implied 1-standard-deviation range for BNGE extends from approximately $27.34 on the downside to $33.56 on the upside. A BNGE long call butterfly is a pinning play: it pays maximum at the middle strike if BNGE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BNGE IV rank near 11.11% 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 BNGE at 35.60%. As a Financial Services name, BNGE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BNGE-specific events.

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

Frequently asked questions

What is a butterfly on BNGE?: A butterfly on BNGE is the butterfly strategy applied to BNGE (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 BNGE etf trading near $30.45, the strikes shown on this page are snapped to the nearest listed BNGE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BNGE 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 BNGE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.60%), the computed maximum profit is $157.10 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BNGE butterfly?: The breakeven for the BNGE butterfly priced on this page is roughly $31.58 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 BNGE market-implied 1-standard-deviation expected move is approximately 10.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on BNGE?: Butterflies on BNGE are pinning bets - traders use them when they expect BNGE 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 BNGE implied volatility affect this butterfly?: BNGE ATM IV is at 35.60% with IV rank near 11.11%, 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.