How are ILIT 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 ILIT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.00%), the computed maximum profit is $57.00 per contract and the computed maximum loss is -$43.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ILIT butterfly?

The breakeven for the ILIT butterfly priced on this page is roughly $15.43 at expiration, derived from the August 14, 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. The ILIT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ILIT implied volatility affect this butterfly?

ILIT ATM IV is at 58.00% with IV rank near 8.47%, 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.

ILIT Butterfly Strategy

ILIT (iShares Lithium Miners and Producers ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

iShares Trust - iShares Lithium Miners and Producers ETF is an exchange traded fund launched by BlackRock, Inc. The fund is managed by BlackRock Fund Advisors. It invests in public equity markets of global region. The fund invests in stocks of companies operating across lithium ore mining and/or lithium compounds manufacturing sectors. The fund invests in growth and value stocks of companies across diversified market capitalization. It seeks to track the performance of the STOXX Global Lithium Miners and Producers Index, by using representative sampling technique. iShares Trust - iShares Lithium Miners and Producers ETF was formed on June 21, 2023 and is domiciled in the United States.

ILIT (iShares Lithium Miners and Producers ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.3M, a beta of 1.50 versus the broader market, a 52-week range of 9.81-23.8, average daily share volume of 32K, a public-listing history dating back to 2023. These structural characteristics shape how ILIT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.50 indicates ILIT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ILIT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ILIT?

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.

ILIT snapshot

As of August 14, 2026, spot at $15.55, ATM IV 58.00%, IV rank 8.47%, expected move 16.63%. The butterfly on ILIT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 98-day expiry.

Why this butterfly structure on ILIT specifically: ILIT IV at 58.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ILIT butterfly, with a market-implied 1-standard-deviation move of approximately 16.63% (roughly $2.59 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ILIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ILIT should anchor to the underlying notional of $15.55 per share and to the trader's directional view on ILIT etf.

ILIT butterfly setup

The ILIT butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ILIT at $15.55 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ILIT chain at a 98-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 ILIT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.00	$2.51
Sell 2	Call	$16.00	$2.08
Buy 1	Call	$16.00	$2.08

ILIT butterfly risk and reward

Net Premium / Debit: -$43.00
Max Profit (per contract): $57.00
Max Loss (per contract): -$43.00
Breakeven(s): $15.43
Risk / Reward Ratio: 1.326

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.

ILIT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ILIT. 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	-99.9%	-$43.00
$3.45	-77.8%	-$43.00
$6.88	-55.7%	-$43.00
$10.32	-33.6%	-$43.00
$13.76	-11.5%	-$43.00
$17.20	+10.6%	+$57.00
$20.63	+32.7%	+$57.00
$24.07	+54.8%	+$57.00
$27.51	+76.9%	+$57.00
$30.94	+99.0%	+$57.00

When traders use butterfly on ILIT

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

ILIT thesis for this butterfly

The market-implied 1-standard-deviation range for ILIT extends from approximately $12.96 on the downside to $18.14 on the upside. A ILIT long call butterfly is a pinning play: it pays maximum at the middle strike if ILIT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ILIT IV rank near 8.47% 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 ILIT at 58.00%. As a Financial Services name, ILIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ILIT-specific events.

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

Frequently asked questions

What is a butterfly on ILIT?: A butterfly on ILIT is the butterfly strategy applied to ILIT (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 ILIT etf at $15.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ILIT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ILIT 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 ILIT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.00%), the computed maximum profit is $57.00 per contract and the computed maximum loss is -$43.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ILIT butterfly?: The breakeven for the ILIT butterfly priced on this page is roughly $15.43 at expiration, derived from the August 14, 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. The ILIT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ILIT?: Butterflies on ILIT are pinning bets - traders use them when they expect ILIT 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 ILIT implied volatility affect this butterfly?: ILIT ATM IV is at 58.00% with IV rank near 8.47%, 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.