How are NCIQ 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 NCIQ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.10%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NCIQ butterfly?

The breakeven for the NCIQ butterfly priced on this page is roughly $15.68 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 NCIQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NCIQ implied volatility affect this butterfly?

Current NCIQ ATM IV is 39.10%; IV rank context is unavailable in the current snapshot.

NCIQ Butterfly Strategy

NCIQ (Hashdex Nasdaq Crypto Index US ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on NASDAQ.

The NCIQ fund aims to replicate the performance of an index composed of the two leading digital assets, Bitcoin (BTC) and Ether (ETH). To achieve this, it directly invests in spot Bitcoin and spot Ether, deliberately avoiding the use of leverage or complex derivatives. The fund also maintains cash reserves to cover its operational expenses. Its investment approach utilizes a market capitalization-weighted strategy, ensuring its holdings in both cryptocurrencies correspond precisely to their proportions within the underlying index. Notably, the fund is prohibited from investing in crypto-related securities, tokenized assets, or stablecoins. Investors should recognize that this fund presents a higher risk profile compared to other exchange-traded products (ETPs) that indirectly hold digital assets, a consequence of the substantial price volatility inherent in cryptocurrency markets.

NCIQ (Hashdex Nasdaq Crypto Index US ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $111.1M, a beta of 1.09 versus the broader market, a 52-week range of 14.38-34.26, average daily share volume of 52K, a public-listing history dating back to 2025. These structural characteristics shape how NCIQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.09 places NCIQ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a butterfly on NCIQ?

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.

NCIQ snapshot

As of August 14, 2026, spot at $15.70, ATM IV 39.10%, expected move 11.21%. The butterfly on NCIQ 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 35-day expiry.

Why this butterfly structure on NCIQ specifically: IV rank is unavailable in the current snapshot, so regime-based timing for NCIQ is inferred from ATM IV at 39.10% alone, with a market-implied 1-standard-deviation move of approximately 11.21% (roughly $1.76 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NCIQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on NCIQ should anchor to the underlying notional of $15.70 per share and to the trader's directional view on NCIQ etf.

NCIQ butterfly setup

The NCIQ 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 NCIQ at $15.70 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NCIQ chain at a 35-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 NCIQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.00	$1.20
Sell 2	Call	$16.00	$0.53
Buy 1	Call	$16.00	$0.53

NCIQ butterfly risk and reward

Net Premium / Debit: -$67.50
Max Profit (per contract): $32.50
Max Loss (per contract): -$67.50
Breakeven(s): $15.68
Risk / Reward Ratio: 0.481

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.

NCIQ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NCIQ. 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	-99.9%	-$67.50
$3.48	-77.8%	-$67.50
$6.95	-55.7%	-$67.50
$10.42	-33.6%	-$67.50
$13.89	-11.5%	-$67.50
$17.36	+10.6%	+$32.50
$20.83	+32.7%	+$32.50
$24.30	+54.8%	+$32.50
$27.77	+76.9%	+$32.50
$31.24	+99.0%	+$32.50

When traders use butterfly on NCIQ

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

NCIQ thesis for this butterfly

The market-implied 1-standard-deviation range for NCIQ extends from approximately $13.94 on the downside to $17.46 on the upside. A NCIQ long call butterfly is a pinning play: it pays maximum at the middle strike if NCIQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, NCIQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NCIQ-specific events.

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

Frequently asked questions

What is a butterfly on NCIQ?: A butterfly on NCIQ is the butterfly strategy applied to NCIQ (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 NCIQ etf at $15.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NCIQ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NCIQ 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 NCIQ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 39.10%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NCIQ butterfly?: The breakeven for the NCIQ butterfly priced on this page is roughly $15.68 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 NCIQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NCIQ?: Butterflies on NCIQ are pinning bets - traders use them when they expect NCIQ 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 NCIQ implied volatility affect this butterfly?: Current NCIQ ATM IV is 39.10%; IV rank context is unavailable in the current snapshot.