EFAX Butterfly Strategy
EFAX (State Street SPDR MSCI EAFE Fossil Fuel Reserves Free ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The State Street SPDR MSCI EAFE Fossil Fuel Reserves Free ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the MSCI EAFE ex Fossil Fuels Index (the "Index")First ever international developed markets fossil fuel reserves free ETFSeeks to offer climate-conscious investors exposure to international equities while limiting exposure to companies owning fossil fuel reservesFor investors interested in minimizing fossil fuel reserves exposure from their portfolio, EFAX may serve as an alternative to traditional international developed markets exposure
EFAX (State Street SPDR MSCI EAFE Fossil Fuel Reserves Free ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $488.4M, a beta of 1.00 versus the broader market, a 52-week range of 45.421-54.87, average daily share volume of 24K, a public-listing history dating back to 2016. These structural characteristics shape how EFAX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places EFAX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EFAX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on EFAX?
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 EFAX snapshot
As of May 15, 2026, spot at $52.50, ATM IV 12.50%, IV rank 7.68%, expected move 3.58%. The butterfly on EFAX 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 EFAX specifically: EFAX IV at 12.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a EFAX butterfly, with a market-implied 1-standard-deviation move of approximately 3.58% (roughly $1.88 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 EFAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EFAX should anchor to the underlying notional of $52.50 per share and to the trader's directional view on EFAX etf.
EFAX butterfly setup
The EFAX 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 EFAX near $52.50, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EFAX 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 EFAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $50.00 | $2.73 |
| Sell 2 | Call | $52.00 | $1.23 |
| Buy 1 | Call | $55.00 | $0.26 |
EFAX butterfly risk and reward
- Net Premium / Debit
- -$53.50
- Max Profit (per contract)
- $122.38
- Max Loss (per contract)
- -$153.50
- Breakeven(s)
- $50.54, $53.47
- Risk / Reward Ratio
- 0.797
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.
EFAX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EFAX. 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% | -$53.50 |
| $11.62 | -77.9% | -$53.50 |
| $23.22 | -55.8% | -$53.50 |
| $34.83 | -33.7% | -$53.50 |
| $46.44 | -11.5% | -$53.50 |
| $58.04 | +10.6% | -$153.50 |
| $69.65 | +32.7% | -$153.50 |
| $81.26 | +54.8% | -$153.50 |
| $92.87 | +76.9% | -$153.50 |
| $104.47 | +99.0% | -$153.50 |
When traders use butterfly on EFAX
Butterflies on EFAX are pinning bets - traders use them when they expect EFAX 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.
EFAX thesis for this butterfly
The market-implied 1-standard-deviation range for EFAX extends from approximately $50.62 on the downside to $54.38 on the upside. A EFAX long call butterfly is a pinning play: it pays maximum at the middle strike if EFAX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EFAX IV rank near 7.68% 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 EFAX at 12.50%. As a Financial Services name, EFAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EFAX-specific events.
EFAX 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. EFAX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EFAX alongside the broader basket even when EFAX-specific fundamentals are unchanged. Always rebuild the position from current EFAX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EFAX?
- A butterfly on EFAX is the butterfly strategy applied to EFAX (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 EFAX etf trading near $52.50, the strikes shown on this page are snapped to the nearest listed EFAX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EFAX 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 EFAX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 12.50%), the computed maximum profit is $122.38 per contract and the computed maximum loss is -$153.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EFAX butterfly?
- The breakeven for the EFAX butterfly priced on this page is roughly $50.54 and $53.47 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 EFAX market-implied 1-standard-deviation expected move is approximately 3.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EFAX?
- Butterflies on EFAX are pinning bets - traders use them when they expect EFAX 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 EFAX implied volatility affect this butterfly?
- EFAX ATM IV is at 12.50% with IV rank near 7.68%, 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.