FPRO Butterfly Strategy
FPRO (Fidelity Real Estate Investment ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Seeks above-average income and long-term capital growth consistent with reasonable investment risk, and offers exposure to key real estate themes.
FPRO (Fidelity Real Estate Investment ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $14.8M, a beta of 1.01 versus the broader market, a 52-week range of 21.95-25.06, average daily share volume of 3K, a public-listing history dating back to 2021. These structural characteristics shape how FPRO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places FPRO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FPRO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FPRO?
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 FPRO snapshot
As of May 15, 2026, spot at $26.25, ATM IV 80.00%, expected move 22.94%. The butterfly on FPRO 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 FPRO specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FPRO is inferred from ATM IV at 80.00% alone, with a market-implied 1-standard-deviation move of approximately 22.94% (roughly $6.02 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 FPRO expiries trade a higher absolute premium for lower per-day decay. Position sizing on FPRO should anchor to the underlying notional of $26.25 per share and to the trader's directional view on FPRO etf.
FPRO butterfly setup
The FPRO 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 FPRO near $26.25, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FPRO 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 FPRO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.00 | $2.35 |
| Sell 2 | Call | $26.00 | $1.85 |
| Buy 1 | Call | $28.00 | $1.70 |
FPRO butterfly risk and reward
- Net Premium / Debit
- -$35.00
- Max Profit (per contract)
- $52.69
- Max Loss (per contract)
- -$135.00
- Breakeven(s)
- $25.35, $26.65
- Risk / Reward Ratio
- 0.390
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.
FPRO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FPRO. 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 | -100.0% | -$35.00 |
| $5.81 | -77.9% | -$35.00 |
| $11.62 | -55.7% | -$35.00 |
| $17.42 | -33.6% | -$35.00 |
| $23.22 | -11.5% | -$35.00 |
| $29.02 | +10.6% | -$135.00 |
| $34.83 | +32.7% | -$135.00 |
| $40.63 | +54.8% | -$135.00 |
| $46.43 | +76.9% | -$135.00 |
| $52.24 | +99.0% | -$135.00 |
When traders use butterfly on FPRO
Butterflies on FPRO are pinning bets - traders use them when they expect FPRO 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.
FPRO thesis for this butterfly
The market-implied 1-standard-deviation range for FPRO extends from approximately $20.23 on the downside to $32.27 on the upside. A FPRO long call butterfly is a pinning play: it pays maximum at the middle strike if FPRO 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, FPRO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FPRO-specific events.
FPRO 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. FPRO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FPRO alongside the broader basket even when FPRO-specific fundamentals are unchanged. Always rebuild the position from current FPRO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FPRO?
- A butterfly on FPRO is the butterfly strategy applied to FPRO (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 FPRO etf trading near $26.25, the strikes shown on this page are snapped to the nearest listed FPRO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FPRO 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 FPRO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 80.00%), the computed maximum profit is $52.69 per contract and the computed maximum loss is -$135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FPRO butterfly?
- The breakeven for the FPRO butterfly priced on this page is roughly $25.35 and $26.65 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 FPRO market-implied 1-standard-deviation expected move is approximately 22.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FPRO?
- Butterflies on FPRO are pinning bets - traders use them when they expect FPRO 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 FPRO implied volatility affect this butterfly?
- Current FPRO ATM IV is 80.00%; IV rank context is unavailable in the current snapshot.