IGPT Butterfly Strategy
IGPT (Invesco AI and Next Gen Software ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco AI and Next Gen Software ETF (Fund) is based on the STOXX World AC NexGen Software Development Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is comprised of companies with significant exposure to technologies or products that contribute to future software development through direct revenue. The Fund and the Index are rebalanced after the close of trading on the second Friday of March, June, September and December.
IGPT (Invesco AI and Next Gen Software ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $756.4M, a beta of 1.86 versus the broader market, a 52-week range of 44.18-93.78, average daily share volume of 71K, a public-listing history dating back to 2005. These structural characteristics shape how IGPT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.86 indicates IGPT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. IGPT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on IGPT?
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 IGPT snapshot
As of May 15, 2026, spot at $88.38, ATM IV 31.90%, IV rank 2.52%, expected move 9.15%. The butterfly on IGPT 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 IGPT specifically: IGPT IV at 31.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a IGPT butterfly, with a market-implied 1-standard-deviation move of approximately 9.15% (roughly $8.08 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 IGPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on IGPT should anchor to the underlying notional of $88.38 per share and to the trader's directional view on IGPT etf.
IGPT butterfly setup
The IGPT 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 IGPT near $88.38, 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 IGPT 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 IGPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $84.00 | $6.25 |
| Sell 2 | Call | $88.00 | $3.68 |
| Buy 1 | Call | $93.00 | $2.05 |
IGPT butterfly risk and reward
- Net Premium / Debit
- -$95.00
- Max Profit (per contract)
- $299.09
- Max Loss (per contract)
- -$195.00
- Breakeven(s)
- $84.95, $91.05
- Risk / Reward Ratio
- 1.534
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.
IGPT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IGPT. 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% | -$95.00 |
| $19.55 | -77.9% | -$95.00 |
| $39.09 | -55.8% | -$95.00 |
| $58.63 | -33.7% | -$95.00 |
| $78.17 | -11.6% | -$95.00 |
| $97.71 | +10.6% | -$195.00 |
| $117.25 | +32.7% | -$195.00 |
| $136.79 | +54.8% | -$195.00 |
| $156.33 | +76.9% | -$195.00 |
| $175.87 | +99.0% | -$195.00 |
When traders use butterfly on IGPT
Butterflies on IGPT are pinning bets - traders use them when they expect IGPT 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.
IGPT thesis for this butterfly
The market-implied 1-standard-deviation range for IGPT extends from approximately $80.30 on the downside to $96.46 on the upside. A IGPT long call butterfly is a pinning play: it pays maximum at the middle strike if IGPT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IGPT IV rank near 2.52% 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 IGPT at 31.90%. As a Financial Services name, IGPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IGPT-specific events.
IGPT 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. IGPT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IGPT alongside the broader basket even when IGPT-specific fundamentals are unchanged. Always rebuild the position from current IGPT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IGPT?
- A butterfly on IGPT is the butterfly strategy applied to IGPT (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 IGPT etf trading near $88.38, the strikes shown on this page are snapped to the nearest listed IGPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IGPT 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 IGPT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $299.09 per contract and the computed maximum loss is -$195.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IGPT butterfly?
- The breakeven for the IGPT butterfly priced on this page is roughly $84.95 and $91.05 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 IGPT market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IGPT?
- Butterflies on IGPT are pinning bets - traders use them when they expect IGPT 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 IGPT implied volatility affect this butterfly?
- IGPT ATM IV is at 31.90% with IV rank near 2.52%, 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.