How are FDT 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 FDT 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 $283.69 per contract and the computed maximum loss is -$190.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDT butterfly?

The breakeven for the FDT butterfly priced on this page is roughly $84.91 and $91.10 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 FDT implied volatility affect this butterfly?

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

FDT Butterfly Strategy

FDT (First Trust Developed Markets ex-US AlphaDEX Fund), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.

The First Trust Developed Markets ex-US AlphaDEX Fund is an exchange-traded fund whose investment objective is to generally replicate the total return (price and yield) of the Nasdaq AlphaDEX Developed Markets Ex-US Index, prior to accounting for its own fees and expenses.

FDT (First Trust Developed Markets ex-US AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $854.4M, a beta of 1.10 versus the broader market, a 52-week range of 74.6-101.32, average daily share volume of 120K, a public-listing history dating back to 2011. These structural characteristics shape how FDT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.10 places FDT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FDT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on FDT?

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.

FDT snapshot

As of November 13, 2026, spot at $88.18. The butterfly on FDT 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 7-day expiry.

Why this butterfly structure on FDT specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FDT is inferred from ATM IV alone. The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDT should anchor to the underlying notional of $88.18 per share and to the trader's directional view on FDT etf.

FDT butterfly setup

The FDT 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 FDT at $88.18 on that close, the first option leg uses a $84.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDT chain at a 7-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 FDT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$84.00	$4.38
Sell 2	Call	$88.00	$1.88
Buy 1	Call	$93.00	$0.29

FDT butterfly risk and reward

Net Premium / Debit: -$90.50
Max Profit (per contract): $283.69
Max Loss (per contract): -$190.50
Breakeven(s): $84.91, $91.10
Risk / Reward Ratio: 1.489

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.

FDT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FDT. 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%	-$90.50
$19.51	-77.9%	-$90.50
$39.00	-55.8%	-$90.50
$58.50	-33.7%	-$90.50
$77.99	-11.6%	-$90.50
$97.49	+10.6%	-$190.50
$116.99	+32.7%	-$190.50
$136.48	+54.8%	-$190.50
$155.98	+76.9%	-$190.50
$175.47	+99.0%	-$190.50

When traders use butterfly on FDT

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

FDT thesis for this butterfly

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

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

Frequently asked questions

What is a butterfly on FDT?: A butterfly on FDT is the butterfly strategy applied to FDT (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 FDT etf at $88.18 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed FDT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FDT 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 FDT 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 $283.69 per contract and the computed maximum loss is -$190.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDT butterfly?: The breakeven for the FDT butterfly priced on this page is roughly $84.91 and $91.10 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 FDT?: Butterflies on FDT are pinning bets - traders use them when they expect FDT 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 FDT implied volatility affect this butterfly?: Current FDT ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.