How are KOMP 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 KOMP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.80%), the computed maximum profit is $253.21 per contract and the computed maximum loss is -$223.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KOMP butterfly?

The breakeven for the KOMP butterfly priced on this page is roughly $72.77 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 KOMP market-implied 1-standard-deviation expected move is approximately 7.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KOMP implied volatility affect this butterfly?

KOMP ATM IV is at 27.80% with IV rank near 6.19%, 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.

KOMP Butterfly Strategy

KOMP (State Street SPDR S&P Kensho New Economies Composite ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The State Street SPDR S&P Kensho New Economies Composite ETF aims to mirror the overall return performance of the S&P Kensho New Economies Composite Index, prior to accounting for its charges and operating costs. The index itself employs artificial intelligence and a systematic, data-driven methodology to pinpoint companies spearheading a new economic era. These innovative businesses are transforming established sectors by harnessing breakthroughs in computing power, artificial intelligence, robotics, and automation. Consequently, the fund seeks to provide an effective means of pursuing long-term growth by investing in the companies and industries at the forefront of this evolving economic landscape.

KOMP (State Street SPDR S&P Kensho New Economies Composite ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.97B, a beta of 1.64 versus the broader market, a 52-week range of 53.88-75.61, average daily share volume of 91K, a public-listing history dating back to 2018. These structural characteristics shape how KOMP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.64 indicates KOMP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KOMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on KOMP?

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 KOMP snapshot

As of June 30, 2026, spot at $71.56, ATM IV 27.80%, IV rank 6.19%, expected move 7.97%. The butterfly on KOMP 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 52-day expiry.

Why this butterfly structure on KOMP specifically: KOMP IV at 27.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a KOMP butterfly, with a market-implied 1-standard-deviation move of approximately 7.97% (roughly $5.70 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KOMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOMP should anchor to the underlying notional of $71.56 per share and to the trader's directional view on KOMP etf.

KOMP butterfly setup

The KOMP 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 KOMP near $71.56, the first option leg uses a $68.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KOMP chain at a 52-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 KOMP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$68.00	$4.18
Sell 2	Call	$70.00	$3.00
Buy 1	Call	$75.00	$1.06

KOMP butterfly risk and reward

Net Premium / Debit: +$76.50
Max Profit (per contract): $253.21
Max Loss (per contract): -$223.50
Breakeven(s): $72.77
Risk / Reward Ratio: 1.133

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.

KOMP butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on KOMP. 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%	+$76.50
$15.83	-77.9%	+$76.50
$31.65	-55.8%	+$76.50
$47.47	-33.7%	+$76.50
$63.29	-11.5%	+$76.50
$79.12	+10.6%	-$223.50
$94.94	+32.7%	-$223.50
$110.76	+54.8%	-$223.50
$126.58	+76.9%	-$223.50
$142.40	+99.0%	-$223.50

When traders use butterfly on KOMP

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

KOMP thesis for this butterfly

The market-implied 1-standard-deviation range for KOMP extends from approximately $65.86 on the downside to $77.26 on the upside. A KOMP long call butterfly is a pinning play: it pays maximum at the middle strike if KOMP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current KOMP IV rank near 6.19% 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 KOMP at 27.80%. As a Financial Services name, KOMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOMP-specific events.

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

Frequently asked questions

What is a butterfly on KOMP?: A butterfly on KOMP is the butterfly strategy applied to KOMP (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 KOMP etf trading near $71.56, the strikes shown on this page are snapped to the nearest listed KOMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KOMP 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 KOMP butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 27.80%), the computed maximum profit is $253.21 per contract and the computed maximum loss is -$223.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KOMP butterfly?: The breakeven for the KOMP butterfly priced on this page is roughly $72.77 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 KOMP market-implied 1-standard-deviation expected move is approximately 7.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on KOMP?: Butterflies on KOMP are pinning bets - traders use them when they expect KOMP 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 KOMP implied volatility affect this butterfly?: KOMP ATM IV is at 27.80% with IV rank near 6.19%, 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.