How are ION 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 ION butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.10%), the computed maximum profit is $181.46 per contract and the computed maximum loss is -$112.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ION butterfly?

The breakeven for the ION butterfly priced on this page is roughly $49.13 and $52.88 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 ION market-implied 1-standard-deviation expected move is approximately 13.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ION implied volatility affect this butterfly?

ION ATM IV is at 47.10% with IV rank near 5.14%, 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.

ION Butterfly Strategy

ION (ProShares S&P Global Core Battery Metals ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

ION is a passively managed ETF that provides exposure to companies engaged in the mining of metals used in battery production. The portfolio is comprised of stocks and depositary receipts that had positive total revenue and production value (dollar market value) from the mining of lithium, nickel, and cobalt during the prior year. Companies could be of any market capitalization from both developed and emerging countries. Using a mathematical approach, the fund determines the type, quantity, and mix of investment positions that are expected to produce returns. Weighting is set to each securitys ranking based on production-value-to-revenue ratio divided by the sum of all ranks. A basket liquidity maximum weight is calculated to determine security capping, with excess amounts redistributed across the portfolio.

ION (ProShares S&P Global Core Battery Metals ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.7M, a beta of 1.21 versus the broader market, a 52-week range of 28.77-69.55, average daily share volume of 6K, a public-listing history dating back to 2022. These structural characteristics shape how ION etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.21 places ION roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ION pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ION?

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 ION snapshot

As of June 30, 2026, spot at $50.68, ATM IV 47.10%, IV rank 5.14%, expected move 13.50%. The butterfly on ION 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 17-day expiry.

Why this butterfly structure on ION specifically: ION IV at 47.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a ION butterfly, with a market-implied 1-standard-deviation move of approximately 13.50% (roughly $6.84 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ION expiries trade a higher absolute premium for lower per-day decay. Position sizing on ION should anchor to the underlying notional of $50.68 per share and to the trader's directional view on ION etf.

ION butterfly setup

The ION 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 ION near $50.68, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ION chain at a 17-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 ION shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$48.00	$3.78
Sell 2	Call	$51.00	$1.90
Buy 1	Call	$53.00	$1.15

ION butterfly risk and reward

Net Premium / Debit: -$112.50
Max Profit (per contract): $181.46
Max Loss (per contract): -$112.50
Breakeven(s): $49.13, $52.88
Risk / Reward Ratio: 1.613

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.

ION butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ION. 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	-100.0%	-$112.50
$11.21	-77.9%	-$112.50
$22.42	-55.8%	-$112.50
$33.62	-33.7%	-$112.50
$44.83	-11.5%	-$112.50
$56.03	+10.6%	-$12.50
$67.24	+32.7%	-$12.50
$78.44	+54.8%	-$12.50
$89.65	+76.9%	-$12.50
$100.85	+99.0%	-$12.50

When traders use butterfly on ION

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

ION thesis for this butterfly

The market-implied 1-standard-deviation range for ION extends from approximately $43.84 on the downside to $57.52 on the upside. A ION long call butterfly is a pinning play: it pays maximum at the middle strike if ION settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ION IV rank near 5.14% 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 ION at 47.10%. As a Financial Services name, ION options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ION-specific events.

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

Frequently asked questions

What is a butterfly on ION?: A butterfly on ION is the butterfly strategy applied to ION (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 ION etf trading near $50.68, the strikes shown on this page are snapped to the nearest listed ION chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ION 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 ION butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.10%), the computed maximum profit is $181.46 per contract and the computed maximum loss is -$112.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ION butterfly?: The breakeven for the ION butterfly priced on this page is roughly $49.13 and $52.88 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 ION market-implied 1-standard-deviation expected move is approximately 13.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ION?: Butterflies on ION are pinning bets - traders use them when they expect ION 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 ION implied volatility affect this butterfly?: ION ATM IV is at 47.10% with IV rank near 5.14%, 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.