How are DXJ 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 DXJ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.50%), the computed maximum profit is $480.78 per contract and the computed maximum loss is -$375.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DXJ butterfly?

The breakeven for the DXJ butterfly priced on this page is roughly $165.75 and $176.25 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 DXJ market-implied 1-standard-deviation expected move is approximately 5.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DXJ implied volatility affect this butterfly?

DXJ ATM IV is at 19.50% with IV rank near 40.44%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

DXJ Butterfly Strategy

DXJ (WisdomTree Japan Hedged Equity Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Under normal circumstances, at least 95% of the fund's total assets (exclusive of collateral held from securities lending) will be invested in component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index is designed to provide exposure to Japanese equity markets while at the same time neutralizing exposure to fluctuations of the Japanese yen relative to the U.S. dollar. The fund is non-diversified.

DXJ (WisdomTree Japan Hedged Equity Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $6.75B, a beta of 0.46 versus the broader market, a 52-week range of 109.52-171.69, average daily share volume of 404K, a public-listing history dating back to 2006. These structural characteristics shape how DXJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.46 indicates DXJ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DXJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on DXJ?

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 DXJ snapshot

As of May 15, 2026, spot at $170.58, ATM IV 19.50%, IV rank 40.44%, expected move 5.59%. The butterfly on DXJ 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 DXJ specifically: DXJ IV at 19.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 5.59% (roughly $9.54 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 DXJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on DXJ should anchor to the underlying notional of $170.58 per share and to the trader's directional view on DXJ etf.

DXJ butterfly setup

The DXJ 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 DXJ near $170.58, the first option leg uses a $162.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DXJ 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 DXJ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$162.00	$10.55
Sell 2	Call	$171.00	$4.10
Buy 1	Call	$179.00	$1.40

DXJ butterfly risk and reward

Net Premium / Debit: -$375.00
Max Profit (per contract): $480.78
Max Loss (per contract): -$375.00
Breakeven(s): $165.75, $176.25
Risk / Reward Ratio: 1.282

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.

DXJ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on DXJ. 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%	-$375.00
$37.73	-77.9%	-$375.00
$75.44	-55.8%	-$375.00
$113.16	-33.7%	-$375.00
$150.87	-11.6%	-$375.00
$188.59	+10.6%	-$275.00
$226.30	+32.7%	-$275.00
$264.02	+54.8%	-$275.00
$301.73	+76.9%	-$275.00
$339.45	+99.0%	-$275.00

When traders use butterfly on DXJ

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

DXJ thesis for this butterfly

The market-implied 1-standard-deviation range for DXJ extends from approximately $161.04 on the downside to $180.12 on the upside. A DXJ long call butterfly is a pinning play: it pays maximum at the middle strike if DXJ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DXJ IV rank near 40.44% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DXJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DXJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DXJ-specific events.

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

Frequently asked questions

What is a butterfly on DXJ?: A butterfly on DXJ is the butterfly strategy applied to DXJ (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 DXJ etf trading near $170.58, the strikes shown on this page are snapped to the nearest listed DXJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DXJ 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 DXJ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.50%), the computed maximum profit is $480.78 per contract and the computed maximum loss is -$375.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DXJ butterfly?: The breakeven for the DXJ butterfly priced on this page is roughly $165.75 and $176.25 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 DXJ market-implied 1-standard-deviation expected move is approximately 5.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on DXJ?: Butterflies on DXJ are pinning bets - traders use them when they expect DXJ 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 DXJ implied volatility affect this butterfly?: DXJ ATM IV is at 19.50% with IV rank near 40.44%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.