How are PAWZ 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 PAWZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 8.20%), the computed maximum profit is $154.33 per contract and the computed maximum loss is -$128.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PAWZ butterfly?

The breakeven for the PAWZ butterfly priced on this page is roughly $50.28 and $53.72 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 PAWZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PAWZ implied volatility affect this butterfly?

PAWZ ATM IV is at 8.20% with IV rank near 0.02%, 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.

PAWZ Butterfly Strategy

PAWZ (ProShares Pet Care ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

ProShares Trust - ProShares Pet Care ETF is an exchange traded fund launched and managed by ProShare Advisors LLC. The fund invests in public equity markets of global region. The fund invests in stocks of companies operating across consumer discretionary, retailing, internet and direct marketing retail, catalog specialty retail, catalog pet care product retail, internet and direct marketing retail, online specialty retail, online pet care product retail, specialty retail, specialty stores, household product stores, pet care product stores, consumer staples, household and personal products, household products, animal care products, pet toys, pet grooming products, health care, health care equipment and services, health care providers and services, health care facilities, veterinary services and animal hospitals, pet care services sectors. It invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the FactSet Pet Care Index, by using full replication technique. ProShares Trust - ProShares Pet Care ETF was formed on November 5, 2018 and is domiciled in the United States.

PAWZ (ProShares Pet Care ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $44.5M, a beta of 1.03 versus the broader market, a 52-week range of 45.96-58.99, average daily share volume of 5K, a public-listing history dating back to 2018. These structural characteristics shape how PAWZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.03 places PAWZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PAWZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PAWZ?

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.

PAWZ snapshot

As of August 14, 2026, spot at $52.08, ATM IV 8.20%, IV rank 0.02%, expected move 2.35%. The butterfly on PAWZ 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 PAWZ specifically: PAWZ IV at 8.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a PAWZ butterfly, with a market-implied 1-standard-deviation move of approximately 2.35% (roughly $1.22 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 PAWZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAWZ should anchor to the underlying notional of $52.08 per share and to the trader's directional view on PAWZ etf.

PAWZ butterfly setup

The PAWZ 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 PAWZ at $52.08 on that close, 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 PAWZ 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 PAWZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$49.00	$3.25
Sell 2	Call	$52.00	$1.05
Buy 1	Call	$55.00	$0.13

PAWZ butterfly risk and reward

Net Premium / Debit: -$128.00
Max Profit (per contract): $154.33
Max Loss (per contract): -$128.00
Breakeven(s): $50.28, $53.72
Risk / Reward Ratio: 1.206

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.

PAWZ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PAWZ. 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%	-$128.00
$11.52	-77.9%	-$128.00
$23.04	-55.8%	-$128.00
$34.55	-33.7%	-$128.00
$46.07	-11.5%	-$128.00
$57.58	+10.6%	-$128.00
$69.09	+32.7%	-$128.00
$80.61	+54.8%	-$128.00
$92.12	+76.9%	-$128.00
$103.64	+99.0%	-$128.00

When traders use butterfly on PAWZ

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

PAWZ thesis for this butterfly

The market-implied 1-standard-deviation range for PAWZ extends from approximately $50.86 on the downside to $53.30 on the upside. A PAWZ long call butterfly is a pinning play: it pays maximum at the middle strike if PAWZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PAWZ IV rank near 0.02% 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 PAWZ at 8.20%. As a Financial Services name, PAWZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAWZ-specific events.

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

Frequently asked questions

What is a butterfly on PAWZ?: A butterfly on PAWZ is the butterfly strategy applied to PAWZ (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 PAWZ etf at $52.08 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PAWZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PAWZ 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 PAWZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 8.20%), the computed maximum profit is $154.33 per contract and the computed maximum loss is -$128.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PAWZ butterfly?: The breakeven for the PAWZ butterfly priced on this page is roughly $50.28 and $53.72 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 PAWZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PAWZ?: Butterflies on PAWZ are pinning bets - traders use them when they expect PAWZ 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 PAWZ implied volatility affect this butterfly?: PAWZ ATM IV is at 8.20% with IV rank near 0.02%, 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.