INDA Butterfly Strategy
INDA (iShares MSCI India ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The iShares MSCI India ETF seeks to track the investment results of an index composed of Indian equities.
INDA (iShares MSCI India ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $9.46B, a beta of 0.56 versus the broader market, a 52-week range of 45.21-56.01, average daily share volume of 9.0M, a public-listing history dating back to 2012. These structural characteristics shape how INDA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates INDA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. INDA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on INDA?
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 INDA snapshot
As of May 15, 2026, spot at $47.97, ATM IV 21.70%, IV rank 44.44%, expected move 6.22%. The butterfly on INDA 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 INDA specifically: INDA IV at 21.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 6.22% (roughly $2.98 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 INDA expiries trade a higher absolute premium for lower per-day decay. Position sizing on INDA should anchor to the underlying notional of $47.97 per share and to the trader's directional view on INDA etf.
INDA butterfly setup
The INDA 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 INDA near $47.97, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INDA 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 INDA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $46.00 | $2.60 |
| Sell 2 | Call | $48.00 | $1.28 |
| Buy 1 | Call | $50.00 | $0.50 |
INDA butterfly risk and reward
- Net Premium / Debit
- -$55.00
- Max Profit (per contract)
- $123.40
- Max Loss (per contract)
- -$55.00
- Breakeven(s)
- $46.55, $49.45
- Risk / Reward Ratio
- 2.244
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.
INDA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on INDA. 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% | -$55.00 |
| $10.62 | -77.9% | -$55.00 |
| $21.22 | -55.8% | -$55.00 |
| $31.83 | -33.7% | -$55.00 |
| $42.43 | -11.5% | -$55.00 |
| $53.04 | +10.6% | -$55.00 |
| $63.64 | +32.7% | -$55.00 |
| $74.25 | +54.8% | -$55.00 |
| $84.85 | +76.9% | -$55.00 |
| $95.46 | +99.0% | -$55.00 |
When traders use butterfly on INDA
Butterflies on INDA are pinning bets - traders use them when they expect INDA 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.
INDA thesis for this butterfly
The market-implied 1-standard-deviation range for INDA extends from approximately $44.99 on the downside to $50.95 on the upside. A INDA long call butterfly is a pinning play: it pays maximum at the middle strike if INDA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current INDA IV rank near 44.44% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on INDA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, INDA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INDA-specific events.
INDA 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. INDA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INDA alongside the broader basket even when INDA-specific fundamentals are unchanged. Always rebuild the position from current INDA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on INDA?
- A butterfly on INDA is the butterfly strategy applied to INDA (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 INDA etf trading near $47.97, the strikes shown on this page are snapped to the nearest listed INDA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INDA 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 INDA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.70%), the computed maximum profit is $123.40 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a INDA butterfly?
- The breakeven for the INDA butterfly priced on this page is roughly $46.55 and $49.45 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 INDA market-implied 1-standard-deviation expected move is approximately 6.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on INDA?
- Butterflies on INDA are pinning bets - traders use them when they expect INDA 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 INDA implied volatility affect this butterfly?
- INDA ATM IV is at 21.70% with IV rank near 44.44%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.