How are DOL 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 DOL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is $184.33 per contract and the computed maximum loss is -$181.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DOL butterfly?

The breakeven for the DOL butterfly priced on this page is roughly $71.81 and $76.19 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 DOL market-implied 1-standard-deviation expected move is approximately 5.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DOL implied volatility affect this butterfly?

DOL ATM IV is at 20.80% with IV rank near 22.15%, 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.

DOL Butterfly Strategy

DOL (WisdomTree True Developed International Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

DOL delivers a broad and dividend paying basket of international (ex-US and Canada) stocks, with the aim to prioritize growth potential and income focus. The fund constructs its investment universe by taking the 300 largest companies from the WisdomTree International Equity Index and WisdomTree Emerging Markets Dividend Index, which contains companies whose primary business activities are in South Korea, Poland, and Taiwan. It then selects and weights stocks by dividends, leading to country and industry biases in its portfolio and making slight departures from a purely market-like exposure. Additionally, the fund applies a composite risk factor screen based on financial quality metrics in order to eliminate companies that have potential higher risk. The index is reconstituted and rebalanced on an annual basis. Prior to Oct. 21, 2025, the fund name was WisdomTree International LargeCap Dividend Fund reflecting the index at that time.

DOL (WisdomTree True Developed International Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $826.9M, a beta of 0.91 versus the broader market, a 52-week range of 58.47-76.92, average daily share volume of 16K, a public-listing history dating back to 2006, approximately 25K full-time employees. These structural characteristics shape how DOL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places DOL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DOL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on DOL?

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 DOL snapshot

As of June 30, 2026, spot at $73.97, ATM IV 20.80%, IV rank 22.15%, expected move 5.96%. The butterfly on DOL 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 17-day expiry.

Why this butterfly structure on DOL specifically: DOL IV at 20.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a DOL butterfly, with a market-implied 1-standard-deviation move of approximately 5.96% (roughly $4.41 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DOL expiries trade a higher absolute premium for lower per-day decay. Position sizing on DOL should anchor to the underlying notional of $73.97 per share and to the trader's directional view on DOL etf.

DOL butterfly setup

The DOL 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 DOL near $73.97, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DOL chain at a 17-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 DOL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$70.00	$4.35
Sell 2	Call	$74.00	$1.38
Buy 1	Call	$78.00	$0.22

DOL butterfly risk and reward

Net Premium / Debit: -$181.00
Max Profit (per contract): $184.33
Max Loss (per contract): -$181.00
Breakeven(s): $71.81, $76.19
Risk / Reward Ratio: 1.018

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.

DOL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DOL. 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%	-$181.00
$16.36	-77.9%	-$181.00
$32.72	-55.8%	-$181.00
$49.07	-33.7%	-$181.00
$65.43	-11.6%	-$181.00
$81.78	+10.6%	-$181.00
$98.13	+32.7%	-$181.00
$114.49	+54.8%	-$181.00
$130.84	+76.9%	-$181.00
$147.20	+99.0%	-$181.00

When traders use butterfly on DOL

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

DOL thesis for this butterfly

The market-implied 1-standard-deviation range for DOL extends from approximately $69.56 on the downside to $78.38 on the upside. A DOL long call butterfly is a pinning play: it pays maximum at the middle strike if DOL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DOL IV rank near 22.15% 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 DOL at 20.80%. As a Financial Services name, DOL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DOL-specific events.

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

Frequently asked questions

What is a butterfly on DOL?: A butterfly on DOL is the butterfly strategy applied to DOL (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 DOL etf trading near $73.97, the strikes shown on this page are snapped to the nearest listed DOL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DOL 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 DOL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is $184.33 per contract and the computed maximum loss is -$181.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DOL butterfly?: The breakeven for the DOL butterfly priced on this page is roughly $71.81 and $76.19 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 DOL market-implied 1-standard-deviation expected move is approximately 5.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DOL?: Butterflies on DOL are pinning bets - traders use them when they expect DOL 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 DOL implied volatility affect this butterfly?: DOL ATM IV is at 20.80% with IV rank near 22.15%, 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.