CPXR Butterfly Strategy
CPXR (USCF Daily Target 2X Copper Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing principally in cash settled copper futures contracts (“Copper Futures Contracts”), and in cash, cash-like instruments or high-quality securities that serve as collateral to the Copper Futures Contracts (“Collateral Investments”). The fund is non-diversified.
CPXR (USCF Daily Target 2X Copper Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $767,343, a beta of 0.47 versus the broader market, a 52-week range of 16.9-34.91, average daily share volume of 39K, a public-listing history dating back to 2025. These structural characteristics shape how CPXR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates CPXR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CPXR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CPXR?
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 CPXR snapshot
As of May 15, 2026, spot at $30.20, ATM IV 62.40%, IV rank 3.31%, expected move 17.89%. The butterfly on CPXR 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 63-day expiry.
Why this butterfly structure on CPXR specifically: CPXR IV at 62.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPXR butterfly, with a market-implied 1-standard-deviation move of approximately 17.89% (roughly $5.40 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPXR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPXR should anchor to the underlying notional of $30.20 per share and to the trader's directional view on CPXR etf.
CPXR butterfly setup
The CPXR 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 CPXR near $30.20, 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 CPXR chain at a 63-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 CPXR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.00 | $3.65 |
| Sell 2 | Call | $30.00 | $3.45 |
| Buy 1 | Call | $32.00 | $2.28 |
CPXR butterfly risk and reward
- Net Premium / Debit
- +$97.50
- Max Profit (per contract)
- $192.17
- Max Loss (per contract)
- -$2.50
- Breakeven(s)
- $32.12
- Risk / Reward Ratio
- 76.869
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.
CPXR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CPXR. 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% | +$97.50 |
| $6.69 | -77.9% | +$97.50 |
| $13.36 | -55.8% | +$97.50 |
| $20.04 | -33.6% | +$97.50 |
| $26.72 | -11.5% | +$97.50 |
| $33.39 | +10.6% | -$2.50 |
| $40.07 | +32.7% | -$2.50 |
| $46.74 | +54.8% | -$2.50 |
| $53.42 | +76.9% | -$2.50 |
| $60.10 | +99.0% | -$2.50 |
When traders use butterfly on CPXR
Butterflies on CPXR are pinning bets - traders use them when they expect CPXR 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.
CPXR thesis for this butterfly
The market-implied 1-standard-deviation range for CPXR extends from approximately $24.80 on the downside to $35.60 on the upside. A CPXR long call butterfly is a pinning play: it pays maximum at the middle strike if CPXR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CPXR IV rank near 3.31% 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 CPXR at 62.40%. As a Financial Services name, CPXR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPXR-specific events.
CPXR 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. CPXR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPXR alongside the broader basket even when CPXR-specific fundamentals are unchanged. Always rebuild the position from current CPXR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CPXR?
- A butterfly on CPXR is the butterfly strategy applied to CPXR (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 CPXR etf trading near $30.20, the strikes shown on this page are snapped to the nearest listed CPXR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CPXR 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 CPXR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.40%), the computed maximum profit is $192.17 per contract and the computed maximum loss is -$2.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CPXR butterfly?
- The breakeven for the CPXR butterfly priced on this page is roughly $32.12 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 CPXR market-implied 1-standard-deviation expected move is approximately 17.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CPXR?
- Butterflies on CPXR are pinning bets - traders use them when they expect CPXR 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 CPXR implied volatility affect this butterfly?
- CPXR ATM IV is at 62.40% with IV rank near 3.31%, 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.