How are MAGX 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 MAGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.80%), the computed maximum profit is $80.98 per contract and the computed maximum loss is -$113.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAGX butterfly?

The breakeven for the MAGX butterfly priced on this page is roughly $49.14 and $50.87 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 MAGX market-implied 1-standard-deviation expected move is approximately 17.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAGX implied volatility affect this butterfly?

MAGX ATM IV is at 60.80% with IV rank near 36.92%, 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.

MAGX Butterfly Strategy

MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.

The Roundhill Daily 2X Long Magnificent Seven ETF, or "the Fund," is engineered to achieve daily investment results that are twice (2X) the performance of the Roundhill Magnificent Seven ETF (the "Magnificent Seven ETF"), prior to accounting for fees and expenses. Critically, this objective is designed to be met only within a single trading day. As a result, the Fund presents a higher risk profile compared to non-leveraged alternatives, given its strategy to amplify daily market fluctuations. For holding periods extending beyond a single day, the Fund's overall returns will be determined by the cumulative effect of its daily compounded performance. It is highly probable that its performance over such extended intervals will diverge significantly from a straightforward two-fold return of the Magnificent Seven ETF's performance, even before factoring in expenses and charges.

MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $41.6M, a beta of 2.93 versus the broader market, a 52-week range of 38.72-63.47, average daily share volume of 117K, a public-listing history dating back to 2024. These structural characteristics shape how MAGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.93 indicates MAGX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAGX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on MAGX?

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 MAGX snapshot

As of June 29, 2026, spot at $49.80, ATM IV 60.80%, IV rank 36.92%, expected move 17.43%. The butterfly on MAGX 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 18-day expiry.

Why this butterfly structure on MAGX specifically: MAGX IV at 60.80% 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 17.43% (roughly $8.68 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGX should anchor to the underlying notional of $49.80 per share and to the trader's directional view on MAGX etf.

MAGX butterfly setup

The MAGX 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 MAGX near $49.80, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGX chain at a 18-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 MAGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$49.00	$2.78
Sell 2	Call	$50.00	$2.10
Buy 1	Call	$52.00	$1.56

MAGX butterfly risk and reward

Net Premium / Debit: -$13.50
Max Profit (per contract): $80.98
Max Loss (per contract): -$113.50
Breakeven(s): $49.14, $50.87
Risk / Reward Ratio: 0.713

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.

MAGX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on MAGX. 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%	-$13.50
$11.02	-77.9%	-$13.50
$22.03	-55.8%	-$13.50
$33.04	-33.7%	-$13.50
$44.05	-11.5%	-$13.50
$55.06	+10.6%	-$113.50
$66.07	+32.7%	-$113.50
$77.08	+54.8%	-$113.50
$88.09	+76.9%	-$113.50
$99.10	+99.0%	-$113.50

When traders use butterfly on MAGX

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

MAGX thesis for this butterfly

The market-implied 1-standard-deviation range for MAGX extends from approximately $41.12 on the downside to $58.48 on the upside. A MAGX long call butterfly is a pinning play: it pays maximum at the middle strike if MAGX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MAGX IV rank near 36.92% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MAGX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MAGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGX-specific events.

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

Frequently asked questions

What is a butterfly on MAGX?: A butterfly on MAGX is the butterfly strategy applied to MAGX (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 MAGX etf trading near $49.80, the strikes shown on this page are snapped to the nearest listed MAGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAGX 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 MAGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 60.80%), the computed maximum profit is $80.98 per contract and the computed maximum loss is -$113.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAGX butterfly?: The breakeven for the MAGX butterfly priced on this page is roughly $49.14 and $50.87 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 MAGX market-implied 1-standard-deviation expected move is approximately 17.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on MAGX?: Butterflies on MAGX are pinning bets - traders use them when they expect MAGX 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 MAGX implied volatility affect this butterfly?: MAGX ATM IV is at 60.80% with IV rank near 36.92%, 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.