How are FCA 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 FCA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.40%), the computed maximum profit is $86.89 per contract and the computed maximum loss is -$8.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FCA butterfly?

The breakeven for the FCA butterfly priced on this page is roughly $26.02 and $27.94 at expiration, derived from the August 14, 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. The FCA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FCA implied volatility affect this butterfly?

FCA ATM IV is at 37.40% with IV rank near 33.33%, 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.

FCA Butterfly Strategy

FCA (First Trust China AlphaDEX Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

FCA offers broad China exposure with a twistit implements its AlphaDex methodology to select a concentrated portfolio of 50 stocks from the S&P China BMI universe based on a number of growth and value factors, subject to weighting constraints set at 15% above the sector percentages of the base index. The fund's tiered equal-weighting structure contributes to its significant mid and small-cap exposure. The fund is also rebalanced and reconstituted semi-annually. Overall, FCA is a breath of fresh air for those wanting to shy away from the 'big 4' Chinese state-owned banks that carry such a heavy hand in most China ETFs.

FCA (First Trust China AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $52.5M, a beta of 0.71 versus the broader market, a 52-week range of 25.81-34.6, average daily share volume of 53K, a public-listing history dating back to 2011. These structural characteristics shape how FCA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.71 places FCA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FCA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on FCA?

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.

FCA snapshot

As of August 14, 2026, spot at $27.08, ATM IV 37.40%, IV rank 33.33%, expected move 10.72%. The butterfly on FCA below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 126-day expiry.

Why this butterfly structure on FCA specifically: FCA IV at 37.40% 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 10.72% (roughly $2.90 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FCA expiries trade a higher absolute premium for lower per-day decay. Position sizing on FCA should anchor to the underlying notional of $27.08 per share and to the trader's directional view on FCA etf.

FCA butterfly setup

The FCA butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FCA at $27.08 on that close, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FCA chain at a 126-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 FCA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$26.00	$2.58
Sell 2	Call	$27.00	$2.08
Buy 1	Call	$28.00	$1.66

FCA butterfly risk and reward

Net Premium / Debit: -$8.00
Max Profit (per contract): $86.89
Max Loss (per contract): -$8.00
Breakeven(s): $26.02, $27.94
Risk / Reward Ratio: 10.862

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.

FCA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FCA. 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	-100.0%	-$8.00
$6.00	-77.9%	-$8.00
$11.98	-55.8%	-$8.00
$17.97	-33.6%	-$8.00
$23.96	-11.5%	-$8.00
$29.94	+10.6%	-$8.00
$35.93	+32.7%	-$8.00
$41.92	+54.8%	-$8.00
$47.90	+76.9%	-$8.00
$53.89	+99.0%	-$8.00

When traders use butterfly on FCA

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

FCA thesis for this butterfly

The market-implied 1-standard-deviation range for FCA extends from approximately $24.18 on the downside to $29.98 on the upside. A FCA long call butterfly is a pinning play: it pays maximum at the middle strike if FCA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FCA IV rank near 33.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FCA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FCA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FCA-specific events.

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

Frequently asked questions

What is a butterfly on FCA?: A butterfly on FCA is the butterfly strategy applied to FCA (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 FCA etf at $27.08 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FCA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FCA 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 FCA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.40%), the computed maximum profit is $86.89 per contract and the computed maximum loss is -$8.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FCA butterfly?: The breakeven for the FCA butterfly priced on this page is roughly $26.02 and $27.94 at expiration, derived from the August 14, 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. The FCA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on FCA?: Butterflies on FCA are pinning bets - traders use them when they expect FCA 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 FCA implied volatility affect this butterfly?: FCA ATM IV is at 37.40% with IV rank near 33.33%, 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.