How are EWV 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 EWV 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 $79.68 per contract and the computed maximum loss is -$17.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EWV butterfly?

The breakeven for the EWV butterfly priced on this page is roughly $17.18 and $18.83 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 EWV implied volatility affect this butterfly?

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

EWV Butterfly Strategy

EWV (ProShares UltraShort MSCI Japan), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The index is designed to measure the performance of the large and mid-cap segments of the Japanese market. Under normal circumstances, the fund will obtain inverse leveraged exposure to at least 80% of its total assets in components of the index or in instruments with similar economic characteristics. The fund is non-diversified.

EWV (ProShares UltraShort MSCI Japan) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $5.5M, a beta of -1.22 versus the broader market, a 52-week range of 15.1-28.33, average daily share volume of 11K, a public-listing history dating back to 2007. These structural characteristics shape how EWV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -1.22 indicates EWV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EWV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on EWV?

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.

EWV snapshot

As of November 13, 2026, spot at $17.70. The butterfly on EWV 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 35-day expiry.

Why this butterfly structure on EWV specifically: IV rank is unavailable in the current snapshot, so regime-based timing for EWV is inferred from ATM IV alone. The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EWV expiries trade a higher absolute premium for lower per-day decay. Position sizing on EWV should anchor to the underlying notional of $17.70 per share and to the trader's directional view on EWV etf.

EWV butterfly setup

The EWV 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 EWV at $17.70 on that close, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EWV chain at a 35-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 EWV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.00	$1.38
Sell 2	Call	$18.00	$0.83
Buy 1	Call	$19.00	$0.45

EWV butterfly risk and reward

Net Premium / Debit: -$17.50
Max Profit (per contract): $79.68
Max Loss (per contract): -$17.50
Breakeven(s): $17.18, $18.83
Risk / Reward Ratio: 4.553

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.

EWV butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on EWV. 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	-99.9%	-$17.50
$3.92	-77.8%	-$17.50
$7.83	-55.7%	-$17.50
$11.75	-33.6%	-$17.50
$15.66	-11.5%	-$17.50
$19.57	+10.6%	-$17.50
$23.48	+32.7%	-$17.50
$27.40	+54.8%	-$17.50
$31.31	+76.9%	-$17.50
$35.22	+99.0%	-$17.50

When traders use butterfly on EWV

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

EWV thesis for this butterfly

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

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

Frequently asked questions

What is a butterfly on EWV?: A butterfly on EWV is the butterfly strategy applied to EWV (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 EWV etf at $17.70 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed EWV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are EWV 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 EWV 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 $79.68 per contract and the computed maximum loss is -$17.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EWV butterfly?: The breakeven for the EWV butterfly priced on this page is roughly $17.18 and $18.83 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 EWV?: Butterflies on EWV are pinning bets - traders use them when they expect EWV 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 EWV implied volatility affect this butterfly?: Current EWV ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.