How are NIKL 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 NIKL butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 55.00%), the computed maximum profit is $23.50 per contract and the computed maximum loss is -$76.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NIKL butterfly?

The breakeven for the NIKL butterfly priced on this page is roughly $14.24 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 NIKL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NIKL implied volatility affect this butterfly?

Current NIKL ATM IV is 55.00%; IV rank context is unavailable in the current snapshot.

NIKL Butterfly Strategy

NIKL (Sprott Nickel Miners ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

NIKL provides pure-play exposure to nickel mining companies. The narrow portfolio typically holds 20 to 35 US and foreign firms that derive at least 50% of their revenue and/or assets from mining, exploration, development, and production of nickel. The fund also includes companies that invest all or a significant portion of their assets in nickel. The initial selection universe is determined using a proprietary selection methodology that may involve industry publications review and fundamental research. Eligible securities that meet the minimum market-cap and liquidity requirements are selected for index inclusion. Each constituent is assigned an intensity score depending on its revenue percentage attributable to nickel.

NIKL (Sprott Nickel Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.3M, a beta of 1.25 versus the broader market, a 52-week range of 12.2-21.855, average daily share volume of 116K, a public-listing history dating back to 2023, approximately 183 full-time employees. These structural characteristics shape how NIKL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.25 places NIKL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NIKL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on NIKL?

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.

NIKL snapshot

As of August 14, 2026, spot at $14.29, ATM IV 55.00%, expected move 15.77%. The butterfly on NIKL 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 NIKL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for NIKL is inferred from ATM IV at 55.00% alone, with a market-implied 1-standard-deviation move of approximately 15.77% (roughly $2.25 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 NIKL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NIKL should anchor to the underlying notional of $14.29 per share and to the trader's directional view on NIKL etf.

NIKL butterfly setup

The NIKL 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 NIKL at $14.29 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NIKL 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 NIKL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$0.73
Sell 2	Call	$14.00	$0.73
Buy 1	Call	$15.00	$0.49

NIKL butterfly risk and reward

Net Premium / Debit: +$23.50
Max Profit (per contract): $23.50
Max Loss (per contract): -$76.50
Breakeven(s): $14.24
Risk / Reward Ratio: 0.307

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.

NIKL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NIKL. 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%	+$23.50
$3.17	-77.8%	+$23.50
$6.33	-55.7%	+$23.50
$9.49	-33.6%	+$23.50
$12.64	-11.5%	+$23.50
$15.80	+10.6%	-$76.50
$18.96	+32.7%	-$76.50
$22.12	+54.8%	-$76.50
$25.28	+76.9%	-$76.50
$28.44	+99.0%	-$76.50

When traders use butterfly on NIKL

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

NIKL thesis for this butterfly

The market-implied 1-standard-deviation range for NIKL extends from approximately $12.04 on the downside to $16.54 on the upside. A NIKL long call butterfly is a pinning play: it pays maximum at the middle strike if NIKL 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, NIKL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NIKL-specific events.

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

Frequently asked questions

What is a butterfly on NIKL?: A butterfly on NIKL is the butterfly strategy applied to NIKL (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 NIKL etf at $14.29 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NIKL chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NIKL 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 NIKL butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 55.00%), the computed maximum profit is $23.50 per contract and the computed maximum loss is -$76.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NIKL butterfly?: The breakeven for the NIKL butterfly priced on this page is roughly $14.24 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 NIKL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NIKL?: Butterflies on NIKL are pinning bets - traders use them when they expect NIKL 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 NIKL implied volatility affect this butterfly?: Current NIKL ATM IV is 55.00%; IV rank context is unavailable in the current snapshot.