FLMX Butterfly Strategy
FLMX (Franklin FTSE Mexico ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico RIC Capped Index (the FTSE Mexico Capped Index).
FLMX (Franklin FTSE Mexico ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $89.9M, a beta of 1.07 versus the broader market, a 52-week range of 28.13-40.03, average daily share volume of 28K, a public-listing history dating back to 2017. These structural characteristics shape how FLMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places FLMX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FLMX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FLMX?
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 FLMX snapshot
As of May 15, 2026, spot at $37.71, ATM IV 31.80%, IV rank 25.80%, expected move 9.12%. The butterfly on FLMX 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 FLMX specifically: FLMX IV at 31.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FLMX butterfly, with a market-implied 1-standard-deviation move of approximately 9.12% (roughly $3.44 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 FLMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLMX should anchor to the underlying notional of $37.71 per share and to the trader's directional view on FLMX etf.
FLMX butterfly setup
The FLMX 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 FLMX near $37.71, the first option leg uses a $35.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLMX 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 FLMX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.82 | N/A |
| Sell 2 | Call | $37.71 | N/A |
| Buy 1 | Call | $39.60 | N/A |
FLMX butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FLMX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FLMX. 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.
When traders use butterfly on FLMX
Butterflies on FLMX are pinning bets - traders use them when they expect FLMX 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.
FLMX thesis for this butterfly
The market-implied 1-standard-deviation range for FLMX extends from approximately $34.27 on the downside to $41.15 on the upside. A FLMX long call butterfly is a pinning play: it pays maximum at the middle strike if FLMX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FLMX IV rank near 25.80% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on FLMX at 31.80%. As a Financial Services name, FLMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLMX-specific events.
FLMX 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. FLMX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLMX alongside the broader basket even when FLMX-specific fundamentals are unchanged. Always rebuild the position from current FLMX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FLMX?
- A butterfly on FLMX is the butterfly strategy applied to FLMX (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 FLMX etf trading near $37.71, the strikes shown on this page are snapped to the nearest listed FLMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLMX 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 FLMX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLMX butterfly?
- The breakeven for the FLMX butterfly priced on this page is no defined breakeven on the modeled curve 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 FLMX market-implied 1-standard-deviation expected move is approximately 9.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FLMX?
- Butterflies on FLMX are pinning bets - traders use them when they expect FLMX 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 FLMX implied volatility affect this butterfly?
- FLMX ATM IV is at 31.80% with IV rank near 25.80%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.