How are FMDE 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 FMDE 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 $161.48 per contract and the computed maximum loss is -$33.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FMDE butterfly?

The breakeven for the FMDE butterfly priced on this page is roughly $40.32 and $43.67 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 FMDE implied volatility affect this butterfly?

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

FMDE Butterfly Strategy

FMDE (Fidelity Enhanced Mid Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This U.S. stock fund focuses on mid-sized companies, employing a structured investment methodology to select businesses with favorable qualities.

FMDE (Fidelity Enhanced Mid Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.62B, a beta of 0.91 versus the broader market, a 52-week range of 34.33-42.97, average daily share volume of 947K, a public-listing history dating back to 2023. These structural characteristics shape how FMDE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places FMDE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FMDE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on FMDE?

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.

FMDE snapshot

As of November 13, 2026, spot at $41.84. The butterfly on FMDE 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 FMDE specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FMDE 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 FMDE expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMDE should anchor to the underlying notional of $41.84 per share and to the trader's directional view on FMDE etf.

FMDE butterfly setup

The FMDE 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 FMDE at $41.84 on that close, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMDE 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 FMDE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$40.00	$2.20
Sell 2	Call	$42.00	$1.17
Buy 1	Call	$44.00	$0.47

FMDE butterfly risk and reward

Net Premium / Debit: -$33.00
Max Profit (per contract): $161.48
Max Loss (per contract): -$33.00
Breakeven(s): $40.32, $43.67
Risk / Reward Ratio: 4.893

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.

FMDE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on FMDE. 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%	-$33.00
$9.26	-77.9%	-$33.00
$18.51	-55.8%	-$33.00
$27.76	-33.7%	-$33.00
$37.01	-11.5%	-$33.00
$46.26	+10.6%	-$33.00
$55.51	+32.7%	-$33.00
$64.76	+54.8%	-$33.00
$74.01	+76.9%	-$33.00
$83.26	+99.0%	-$33.00

When traders use butterfly on FMDE

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

FMDE thesis for this butterfly

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

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

Frequently asked questions

What is a butterfly on FMDE?: A butterfly on FMDE is the butterfly strategy applied to FMDE (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 FMDE etf at $41.84 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed FMDE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FMDE 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 FMDE 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 $161.48 per contract and the computed maximum loss is -$33.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FMDE butterfly?: The breakeven for the FMDE butterfly priced on this page is roughly $40.32 and $43.67 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 FMDE?: Butterflies on FMDE are pinning bets - traders use them when they expect FMDE 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 FMDE implied volatility affect this butterfly?: Current FMDE ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.