IXUS Butterfly Strategy
IXUS (iShares Core MSCI Total International Stock ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The iShares Core MSCI Total International Stock ETF is designed to replicate the investment returns of an index consisting of large, mid, and small-cap companies based outside the United States.
IXUS (iShares Core MSCI Total International Stock ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $60.13B, a beta of 0.92 versus the broader market, a 52-week range of 78.69-98.09, average daily share volume of 1.9M, a public-listing history dating back to 2012. These structural characteristics shape how IXUS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places IXUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IXUS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on IXUS?
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.
IXUS snapshot
As of August 14, 2026, spot at $97.94, ATM IV 14.10%, IV rank 10.26%, expected move 4.04%. The butterfly on IXUS 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 7-day expiry.
Why this butterfly structure on IXUS specifically: IXUS IV at 14.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a IXUS butterfly, with a market-implied 1-standard-deviation move of approximately 4.04% (roughly $3.96 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IXUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on IXUS should anchor to the underlying notional of $97.94 per share and to the trader's directional view on IXUS etf.
IXUS butterfly setup
The IXUS 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 IXUS at $97.94 on that close, the first option leg uses a $93.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IXUS chain at a 7-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 IXUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $93.00 | $5.15 |
| Sell 2 | Call | $98.00 | $1.00 |
| Buy 1 | Call | $101.00 | $0.13 |
IXUS butterfly risk and reward
- Net Premium / Debit
- -$328.00
- Max Profit (per contract)
- $128.29
- Max Loss (per contract)
- -$328.00
- Breakeven(s)
- $96.28, $99.72
- Risk / Reward Ratio
- 0.391
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.
IXUS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IXUS. 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% | -$328.00 |
| $21.66 | -77.9% | -$328.00 |
| $43.32 | -55.8% | -$328.00 |
| $64.97 | -33.7% | -$328.00 |
| $86.63 | -11.6% | -$328.00 |
| $108.28 | +10.6% | -$128.00 |
| $129.93 | +32.7% | -$128.00 |
| $151.59 | +54.8% | -$128.00 |
| $173.24 | +76.9% | -$128.00 |
| $194.90 | +99.0% | -$128.00 |
When traders use butterfly on IXUS
Butterflies on IXUS are pinning bets - traders use them when they expect IXUS 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.
IXUS thesis for this butterfly
The market-implied 1-standard-deviation range for IXUS extends from approximately $93.98 on the downside to $101.90 on the upside. A IXUS long call butterfly is a pinning play: it pays maximum at the middle strike if IXUS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IXUS IV rank near 10.26% 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 IXUS at 14.10%. As a Financial Services name, IXUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IXUS-specific events.
IXUS 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. IXUS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IXUS alongside the broader basket even when IXUS-specific fundamentals are unchanged. Always rebuild the position from current IXUS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IXUS?
- A butterfly on IXUS is the butterfly strategy applied to IXUS (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 IXUS etf at $97.94 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IXUS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IXUS 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 IXUS butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.10%), the computed maximum profit is $128.29 per contract and the computed maximum loss is -$328.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IXUS butterfly?
- The breakeven for the IXUS butterfly priced on this page is roughly $96.28 and $99.72 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 IXUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IXUS?
- Butterflies on IXUS are pinning bets - traders use them when they expect IXUS 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 IXUS implied volatility affect this butterfly?
- IXUS ATM IV is at 14.10% with IV rank near 10.26%, 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.