How are CRPT 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 CRPT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.50%), the computed maximum profit is $38.06 per contract and the computed maximum loss is -$61.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CRPT butterfly?

The breakeven for the CRPT butterfly priced on this page is roughly $14.62 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 CRPT market-implied 1-standard-deviation expected move is approximately 15.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CRPT implied volatility affect this butterfly?

CRPT ATM IV is at 55.50% with IV rank near 13.61%, 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.

CRPT Butterfly Strategy

CRPT (First Trust SkyBridge Crypto Industry and Digital Economy ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on AMEX.

The First Trust SkyBridge Crypto Industry and Digital Economy ETF's (the "Fund") investment objective is to provide investors with capital appreciation. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any investment borrowings) in the common stocks and American Depositary Receipts ("ADRs") of Crypto Industry Companies, including Bitcoin Exchange-Traded Products, and Digital Economy Companies. Under normal market conditions, the Fund will invest at least 50% of its net assets (plus any investment borrowings) in Crypto Industry Companies. The remainder of the Fund's net assets used to satisfy the 80% test set forth above will be invested in Digital Economy Companies. The Fund generally intends to invest up to 25% of its net assets in Bitcoin Exchange-Traded Products; however, at certain times, the Fund may invest more than 25% of its net assets in Bitcoin Exchange-Traded Products.

CRPT (First Trust SkyBridge Crypto Industry and Digital Economy ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $92.6M, a beta of 3.56 versus the broader market, a 52-week range of 10.745-25.9, average daily share volume of 88K, a public-listing history dating back to 2021. These structural characteristics shape how CRPT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.56 indicates CRPT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CRPT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on CRPT?

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 CRPT snapshot

As of May 15, 2026, spot at $15.22, ATM IV 55.50%, IV rank 13.61%, expected move 15.91%. The butterfly on CRPT 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 CRPT specifically: CRPT IV at 55.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a CRPT butterfly, with a market-implied 1-standard-deviation move of approximately 15.91% (roughly $2.42 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 CRPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRPT should anchor to the underlying notional of $15.22 per share and to the trader's directional view on CRPT etf.

CRPT butterfly setup

The CRPT 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 CRPT near $15.22, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRPT 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 CRPT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$1.68
Sell 2	Call	$15.00	$0.88
Buy 1	Call	$16.00	$0.69

CRPT butterfly risk and reward

Net Premium / Debit: -$61.50
Max Profit (per contract): $38.06
Max Loss (per contract): -$61.50
Breakeven(s): $14.62
Risk / Reward Ratio: 0.619

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.

CRPT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on CRPT. 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	-99.9%	-$61.50
$3.37	-77.8%	-$61.50
$6.74	-55.7%	-$61.50
$10.10	-33.6%	-$61.50
$13.47	-11.5%	-$61.50
$16.83	+10.6%	-$61.50
$20.19	+32.7%	-$61.50
$23.56	+54.8%	-$61.50
$26.92	+76.9%	-$61.50
$30.29	+99.0%	-$61.50

When traders use butterfly on CRPT

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

CRPT thesis for this butterfly

The market-implied 1-standard-deviation range for CRPT extends from approximately $12.80 on the downside to $17.64 on the upside. A CRPT long call butterfly is a pinning play: it pays maximum at the middle strike if CRPT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRPT IV rank near 13.61% 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 CRPT at 55.50%. As a Financial Services name, CRPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRPT-specific events.

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

Frequently asked questions

What is a butterfly on CRPT?: A butterfly on CRPT is the butterfly strategy applied to CRPT (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 CRPT etf trading near $15.22, the strikes shown on this page are snapped to the nearest listed CRPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CRPT 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 CRPT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.50%), the computed maximum profit is $38.06 per contract and the computed maximum loss is -$61.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CRPT butterfly?: The breakeven for the CRPT butterfly priced on this page is roughly $14.62 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 CRPT market-implied 1-standard-deviation expected move is approximately 15.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on CRPT?: Butterflies on CRPT are pinning bets - traders use them when they expect CRPT 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 CRPT implied volatility affect this butterfly?: CRPT ATM IV is at 55.50% with IV rank near 13.61%, 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.