How are CQQQ 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 CQQQ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.70%), the computed maximum profit is $152.94 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CQQQ butterfly?

The breakeven for the CQQQ butterfly priced on this page is roughly $49.35 and $52.65 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 CQQQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CQQQ implied volatility affect this butterfly?

CQQQ ATM IV is at 30.70% with IV rank near 2.52%, 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.

CQQQ Butterfly Strategy

CQQQ (Invesco China Technology ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco China Technology ETF (CQQQ) aims to replicate the investment performance of the FTSE China Incl A 25% Technology Capped Index. This fund primarily allocates at least 90% of its total assets to the securities, including American and Global Depositary Receipts, that constitute its underlying benchmark. The index itself is comprised of information technology companies drawn from both the FTSE China Index and the FTSE China A Stock Connect Index, encompassing China A-shares and China B-shares. Both the ETF and its benchmark undergo rebalancing on a quarterly basis. Additionally, as of January 5, 2024, Invesco lowered the management fees for CQQQ from 70 basis points to 65 basis points.

CQQQ (Invesco China Technology ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $3.15B, a beta of 1.01 versus the broader market, a 52-week range of 44.3-61.2, average daily share volume of 1.2M, a public-listing history dating back to 2009. These structural characteristics shape how CQQQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places CQQQ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CQQQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CQQQ?

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.

CQQQ snapshot

As of August 14, 2026, spot at $50.86, ATM IV 30.70%, IV rank 2.52%, expected move 8.80%. The butterfly on CQQQ 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 CQQQ specifically: CQQQ IV at 30.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CQQQ butterfly, with a market-implied 1-standard-deviation move of approximately 8.80% (roughly $4.48 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 CQQQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on CQQQ should anchor to the underlying notional of $50.86 per share and to the trader's directional view on CQQQ etf.

CQQQ butterfly setup

The CQQQ 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 CQQQ at $50.86 on that close, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CQQQ 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 CQQQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$49.00	$2.85
Sell 2	Call	$51.00	$2.00
Buy 1	Call	$53.00	$1.50

CQQQ butterfly risk and reward

Net Premium / Debit: -$35.00
Max Profit (per contract): $152.94
Max Loss (per contract): -$35.00
Breakeven(s): $49.35, $52.65
Risk / Reward Ratio: 4.370

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.

CQQQ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CQQQ. 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%	-$35.00
$11.25	-77.9%	-$35.00
$22.50	-55.8%	-$35.00
$33.74	-33.7%	-$35.00
$44.99	-11.5%	-$35.00
$56.23	+10.6%	-$35.00
$67.48	+32.7%	-$35.00
$78.72	+54.8%	-$35.00
$89.96	+76.9%	-$35.00
$101.21	+99.0%	-$35.00

When traders use butterfly on CQQQ

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

CQQQ thesis for this butterfly

The market-implied 1-standard-deviation range for CQQQ extends from approximately $46.38 on the downside to $55.34 on the upside. A CQQQ long call butterfly is a pinning play: it pays maximum at the middle strike if CQQQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CQQQ IV rank near 2.52% 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 CQQQ at 30.70%. As a Financial Services name, CQQQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CQQQ-specific events.

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

Frequently asked questions

What is a butterfly on CQQQ?: A butterfly on CQQQ is the butterfly strategy applied to CQQQ (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 CQQQ etf at $50.86 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CQQQ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CQQQ 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 CQQQ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.70%), the computed maximum profit is $152.94 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CQQQ butterfly?: The breakeven for the CQQQ butterfly priced on this page is roughly $49.35 and $52.65 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 CQQQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CQQQ?: Butterflies on CQQQ are pinning bets - traders use them when they expect CQQQ 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 CQQQ implied volatility affect this butterfly?: CQQQ ATM IV is at 30.70% with IV rank near 2.52%, 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.