EMET Butterfly Strategy
EMET (VanEck Copper and Green Metals ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
VanEck Copper and Green Metals ETF (EMET) seeks to track as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Clean-Tech Metals Index (MVGMETTR).
EMET (VanEck Copper and Green Metals ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $38.2M, a beta of 0.94 versus the broader market, a 52-week range of 21-49.42, average daily share volume of 10K, a public-listing history dating back to 2021. These structural characteristics shape how EMET etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places EMET roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EMET pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on EMET?
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 EMET snapshot
As of May 15, 2026, spot at $44.31, ATM IV 38.10%, expected move 10.92%. The butterfly on EMET 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 EMET specifically: IV rank is unavailable in the current snapshot, so regime-based timing for EMET is inferred from ATM IV at 38.10% alone, with a market-implied 1-standard-deviation move of approximately 10.92% (roughly $4.84 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 EMET expiries trade a higher absolute premium for lower per-day decay. Position sizing on EMET should anchor to the underlying notional of $44.31 per share and to the trader's directional view on EMET etf.
EMET butterfly setup
The EMET 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 EMET near $44.31, the first option leg uses a $42.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EMET 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 EMET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $42.00 | $3.43 |
| Sell 2 | Call | $44.00 | $2.13 |
| Buy 1 | Call | $47.00 | $0.96 |
EMET butterfly risk and reward
- Net Premium / Debit
- -$13.50
- Max Profit (per contract)
- $177.26
- Max Loss (per contract)
- -$113.50
- Breakeven(s)
- $42.06, $45.87
- Risk / Reward Ratio
- 1.562
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.
EMET butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EMET. 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% | -$13.50 |
| $9.81 | -77.9% | -$13.50 |
| $19.60 | -55.8% | -$13.50 |
| $29.40 | -33.7% | -$13.50 |
| $39.19 | -11.5% | -$13.50 |
| $48.99 | +10.6% | -$113.50 |
| $58.79 | +32.7% | -$113.50 |
| $68.58 | +54.8% | -$113.50 |
| $78.38 | +76.9% | -$113.50 |
| $88.17 | +99.0% | -$113.50 |
When traders use butterfly on EMET
Butterflies on EMET are pinning bets - traders use them when they expect EMET 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.
EMET thesis for this butterfly
The market-implied 1-standard-deviation range for EMET extends from approximately $39.47 on the downside to $49.15 on the upside. A EMET long call butterfly is a pinning play: it pays maximum at the middle strike if EMET 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, EMET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EMET-specific events.
EMET 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. EMET positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EMET alongside the broader basket even when EMET-specific fundamentals are unchanged. Always rebuild the position from current EMET chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EMET?
- A butterfly on EMET is the butterfly strategy applied to EMET (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 EMET etf trading near $44.31, the strikes shown on this page are snapped to the nearest listed EMET chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EMET 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 EMET butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.10%), the computed maximum profit is $177.26 per contract and the computed maximum loss is -$113.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EMET butterfly?
- The breakeven for the EMET butterfly priced on this page is roughly $42.06 and $45.87 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 EMET market-implied 1-standard-deviation expected move is approximately 10.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EMET?
- Butterflies on EMET are pinning bets - traders use them when they expect EMET 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 EMET implied volatility affect this butterfly?
- Current EMET ATM IV is 38.10%; IV rank context is unavailable in the current snapshot.