How are DSMC 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 DSMC butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $132.41 per contract and the computed maximum loss is -$48.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DSMC butterfly?

The breakeven for the DSMC butterfly priced on this page is roughly $43.49 and $46.52 at expiration, derived from the November 13, 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.

How does current DSMC implied volatility affect this butterfly?

Current DSMC ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.

DSMC Butterfly Strategy

DSMC (Distillate Small/Mid Cash Flow ETF), in the Financial Services sector, (Asset Management industry), listed on NYSE.

DSMC employs a disciplined strategy to pick its holdings, admitting only companies that satisfy its unique, internally developed benchmarks for cash-flow-based valuation and overall quality. The fund's initial universe for consideration encompasses roughly 1,000 profitable U.S. stocks from the small and mid-capitalization segments.

DSMC (Distillate Small/Mid Cash Flow ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $148.6M, a beta of 0.68 versus the broader market, a 52-week range of 32.94-46.07, average daily share volume of 7K, a public-listing history dating back to 2022. These structural characteristics shape how DSMC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.68 indicates DSMC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DSMC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on DSMC?

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.

DSMC snapshot

As of November 13, 2026, spot at $44.96. The butterfly on DSMC below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this butterfly structure on DSMC specifically: IV rank is unavailable in the current snapshot, so regime-based timing for DSMC is inferred from ATM IV alone. The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DSMC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DSMC should anchor to the underlying notional of $44.96 per share and to the trader's directional view on DSMC etf.

DSMC butterfly setup

The DSMC butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DSMC at $44.96 on that close, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DSMC chain at a 7-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 DSMC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$43.00	$2.08
Sell 2	Call	$45.00	$0.93
Buy 1	Call	$47.00	$0.27

DSMC butterfly risk and reward

Net Premium / Debit: -$48.50
Max Profit (per contract): $132.41
Max Loss (per contract): -$48.50
Breakeven(s): $43.49, $46.52
Risk / Reward Ratio: 2.730

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.

DSMC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DSMC. 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%	-$48.50
$9.95	-77.9%	-$48.50
$19.89	-55.8%	-$48.50
$29.83	-33.7%	-$48.50
$39.77	-11.5%	-$48.50
$49.71	+10.6%	-$48.50
$59.65	+32.7%	-$48.50
$69.59	+54.8%	-$48.50
$79.53	+76.9%	-$48.50
$89.47	+99.0%	-$48.50

When traders use butterfly on DSMC

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

DSMC thesis for this butterfly

A DSMC long call butterfly is a pinning play: it pays maximum at the middle strike if DSMC 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, DSMC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DSMC-specific events.

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

Frequently asked questions

What is a butterfly on DSMC?: A butterfly on DSMC is the butterfly strategy applied to DSMC (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 DSMC etf at $44.96 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed DSMC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DSMC 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 DSMC butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $132.41 per contract and the computed maximum loss is -$48.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DSMC butterfly?: The breakeven for the DSMC butterfly priced on this page is roughly $43.49 and $46.52 at expiration, derived from the November 13, 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.
When should you consider a butterfly on DSMC?: Butterflies on DSMC are pinning bets - traders use them when they expect DSMC 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 DSMC implied volatility affect this butterfly?: Current DSMC ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.