FXC Butterfly Strategy
FXC (Invesco CurrencyShares Canadian Dollar Trust), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco CurrencyShares Canadian Dollar Trust (the "trust") is designed to track the price of the Canadian dollar, and trades under the ticker symbol FXC. The Canadian dollar is the national currency of Canada and the currency of the accounts of the Bank of Canada, the Canadian Central Bank.
FXC (Invesco CurrencyShares Canadian Dollar Trust) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $74.9M, a beta of 0.52 versus the broader market, a 52-week range of 69.08-72.47, average daily share volume of 52K, a public-listing history dating back to 2006. These structural characteristics shape how FXC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.52 indicates FXC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FXC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FXC?
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 FXC snapshot
As of May 14, 2026, spot at $71.18, ATM IV 7.80%, IV rank 0.96%, expected move 2.24%. The butterfly on FXC 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 FXC specifically: FXC IV at 7.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FXC butterfly, with a market-implied 1-standard-deviation move of approximately 2.24% (roughly $1.59 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 FXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FXC should anchor to the underlying notional of $71.18 per share and to the trader's directional view on FXC etf.
FXC butterfly setup
The FXC 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 FXC near $71.18, the first option leg uses a $68.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FXC 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 FXC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $68.00 | $3.10 |
| Sell 2 | Call | $71.00 | $1.00 |
| Buy 1 | Call | $75.00 | $0.08 |
FXC butterfly risk and reward
- Net Premium / Debit
- -$118.00
- Max Profit (per contract)
- $164.73
- Max Loss (per contract)
- -$218.00
- Breakeven(s)
- $69.18, $72.82
- Risk / Reward Ratio
- 0.756
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.
FXC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FXC. 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% | -$118.00 |
| $15.75 | -77.9% | -$118.00 |
| $31.48 | -55.8% | -$118.00 |
| $47.22 | -33.7% | -$118.00 |
| $62.96 | -11.5% | -$118.00 |
| $78.70 | +10.6% | -$218.00 |
| $94.43 | +32.7% | -$218.00 |
| $110.17 | +54.8% | -$218.00 |
| $125.91 | +76.9% | -$218.00 |
| $141.64 | +99.0% | -$218.00 |
When traders use butterfly on FXC
Butterflies on FXC are pinning bets - traders use them when they expect FXC 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.
FXC thesis for this butterfly
The market-implied 1-standard-deviation range for FXC extends from approximately $69.59 on the downside to $72.77 on the upside. A FXC long call butterfly is a pinning play: it pays maximum at the middle strike if FXC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FXC IV rank near 0.96% 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 FXC at 7.80%. As a Financial Services name, FXC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FXC-specific events.
FXC 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. FXC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FXC alongside the broader basket even when FXC-specific fundamentals are unchanged. Always rebuild the position from current FXC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FXC?
- A butterfly on FXC is the butterfly strategy applied to FXC (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 FXC etf trading near $71.18, the strikes shown on this page are snapped to the nearest listed FXC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FXC 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 FXC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 7.80%), the computed maximum profit is $164.73 per contract and the computed maximum loss is -$218.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FXC butterfly?
- The breakeven for the FXC butterfly priced on this page is roughly $69.18 and $72.82 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 FXC market-implied 1-standard-deviation expected move is approximately 2.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FXC?
- Butterflies on FXC are pinning bets - traders use them when they expect FXC 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 FXC implied volatility affect this butterfly?
- FXC ATM IV is at 7.80% with IV rank near 0.96%, 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.