COPP Butterfly Strategy
COPP (Sprott Copper Miners ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The fund will, under normal circumstances, invest at least 80% of its total assets in securities of the index. The index is designed to track the performance of companies that derive at least 50% of their revenue and/or assets from mining, exploration, development, and production of copper. The fund is non-diversified.
COPP (Sprott Copper Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $52.6M, a beta of 0.79 versus the broader market, a 52-week range of 19.965-47.46, average daily share volume of 212K, a public-listing history dating back to 2024. These structural characteristics shape how COPP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places COPP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. COPP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on COPP?
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 COPP snapshot
As of May 15, 2026, spot at $39.76, ATM IV 51.20%, expected move 14.68%. The butterfly on COPP 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 COPP specifically: IV rank is unavailable in the current snapshot, so regime-based timing for COPP is inferred from ATM IV at 51.20% alone, with a market-implied 1-standard-deviation move of approximately 14.68% (roughly $5.84 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 COPP expiries trade a higher absolute premium for lower per-day decay. Position sizing on COPP should anchor to the underlying notional of $39.76 per share and to the trader's directional view on COPP etf.
COPP butterfly setup
The COPP 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 COPP near $39.76, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COPP 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 COPP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $38.00 | $3.40 |
| Sell 2 | Call | $40.00 | $2.33 |
| Buy 1 | Call | $42.00 | $2.10 |
COPP butterfly risk and reward
- Net Premium / Debit
- -$85.00
- Max Profit (per contract)
- $111.48
- Max Loss (per contract)
- -$85.00
- Breakeven(s)
- $38.85, $41.15
- Risk / Reward Ratio
- 1.311
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.
COPP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on COPP. 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% | -$85.00 |
| $8.80 | -77.9% | -$85.00 |
| $17.59 | -55.8% | -$85.00 |
| $26.38 | -33.7% | -$85.00 |
| $35.17 | -11.5% | -$85.00 |
| $43.96 | +10.6% | -$85.00 |
| $52.75 | +32.7% | -$85.00 |
| $61.54 | +54.8% | -$85.00 |
| $70.33 | +76.9% | -$85.00 |
| $79.12 | +99.0% | -$85.00 |
When traders use butterfly on COPP
Butterflies on COPP are pinning bets - traders use them when they expect COPP 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.
COPP thesis for this butterfly
The market-implied 1-standard-deviation range for COPP extends from approximately $33.92 on the downside to $45.60 on the upside. A COPP long call butterfly is a pinning play: it pays maximum at the middle strike if COPP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, COPP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COPP-specific events.
COPP 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. COPP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COPP alongside the broader basket even when COPP-specific fundamentals are unchanged. Always rebuild the position from current COPP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on COPP?
- A butterfly on COPP is the butterfly strategy applied to COPP (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 COPP etf trading near $39.76, the strikes shown on this page are snapped to the nearest listed COPP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are COPP 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 COPP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.20%), the computed maximum profit is $111.48 per contract and the computed maximum loss is -$85.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COPP butterfly?
- The breakeven for the COPP butterfly priced on this page is roughly $38.85 and $41.15 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 COPP market-implied 1-standard-deviation expected move is approximately 14.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on COPP?
- Butterflies on COPP are pinning bets - traders use them when they expect COPP 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 COPP implied volatility affect this butterfly?
- Current COPP ATM IV is 51.20%; IV rank context is unavailable in the current snapshot.