EWZS Butterfly Strategy
EWZS (iShares MSCI Brazil Small-Cap ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
EWZS is essentially a bet on the sectors that dominate the Brazillian small-cap market. That being said, it still invests in a variety of different sectors, giving it a broader classification. The index is rebalanced quarterly and uses market capitalization to select and weigh its constituents. The fund uses a representative sampling strategy, which means it will invest in a sample of securities that collectively have an investment profile similar to that of the underlying index. Overall, EWZS is a viable choice for investors who want neutral exposure to the Brazilian small-cap market.
EWZS (iShares MSCI Brazil Small-Cap ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $119.6M, a beta of 1.28 versus the broader market, a 52-week range of 10.15-17.15, average daily share volume of 1.3M, a public-listing history dating back to 2010. These structural characteristics shape how EWZS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places EWZS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EWZS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on EWZS?
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.
EWZS snapshot
As of November 13, 2026, spot at $10.89. The butterfly on EWZS 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 EWZS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for EWZS 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 EWZS expiries trade a higher absolute premium for lower per-day decay. Position sizing on EWZS should anchor to the underlying notional of $10.89 per share and to the trader's directional view on EWZS etf.
EWZS butterfly setup
The EWZS 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 EWZS at $10.89 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EWZS 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 EWZS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.00 | $1.10 |
| Sell 2 | Call | $11.00 | $0.48 |
| Buy 1 | Call | $11.00 | $0.48 |
EWZS butterfly risk and reward
- Net Premium / Debit
- -$62.50
- Max Profit (per contract)
- $37.50
- Max Loss (per contract)
- -$62.50
- Breakeven(s)
- $10.63
- Risk / Reward Ratio
- 0.600
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.
EWZS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EWZS. 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 | -99.9% | -$62.50 |
| $2.42 | -77.8% | -$62.50 |
| $4.82 | -55.7% | -$62.50 |
| $7.23 | -33.6% | -$62.50 |
| $9.64 | -11.5% | -$62.50 |
| $12.04 | +10.6% | +$37.50 |
| $14.45 | +32.7% | +$37.50 |
| $16.86 | +54.8% | +$37.50 |
| $19.26 | +76.9% | +$37.50 |
| $21.67 | +99.0% | +$37.50 |
When traders use butterfly on EWZS
Butterflies on EWZS are pinning bets - traders use them when they expect EWZS 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.
EWZS thesis for this butterfly
A EWZS long call butterfly is a pinning play: it pays maximum at the middle strike if EWZS 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, EWZS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EWZS-specific events.
EWZS 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. EWZS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EWZS alongside the broader basket even when EWZS-specific fundamentals are unchanged. Always rebuild the position from current EWZS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EWZS?
- A butterfly on EWZS is the butterfly strategy applied to EWZS (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 EWZS etf at $10.89 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed EWZS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are EWZS 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 EWZS 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 $37.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EWZS butterfly?
- The breakeven for the EWZS butterfly priced on this page is roughly $10.63 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 EWZS?
- Butterflies on EWZS are pinning bets - traders use them when they expect EWZS 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 EWZS implied volatility affect this butterfly?
- Current EWZS ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.