How are PICK 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 PICK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $237.50 per contract and the computed maximum loss is -$262.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PICK butterfly?

The breakeven for the PICK butterfly priced on this page is roughly $57.63 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 PICK market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PICK implied volatility affect this butterfly?

PICK ATM IV is at 42.90% with IV rank near 70.26%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

PICK Butterfly Strategy

PICK (iShares MSCI Global Metals & Mining Producers ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

iShares, Inc. - iShares MSCI Global Metals & Mining Producers ETF is an exchange traded fund launched by BlackRock, Inc. The fund is managed by BlackRock Fund Advisors. It invests in public equity markets of global region. The fund invests in stocks of companies operating across materials, metals and mining, aluminum, diversified metals and mining, precious metals and minerals, steel sectors. It invests in growth and value stocks of companies across diversified market capitalization. It seeks to track the performance of the MSCI ACWI Select Metals & Mining Producers ex Gold and Silver Investable Market Index, by using representative sampling technique. iShares, Inc. - iShares MSCI Global Metals & Mining Producers ETF was formed on January 31, 2012 and is domiciled in the United States.

PICK (iShares MSCI Global Metals & Mining Producers ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.19B, a beta of 1.15 versus the broader market, a 52-week range of 37.44-69.02, average daily share volume of 717K, a public-listing history dating back to 2012. These structural characteristics shape how PICK etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.15 places PICK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PICK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PICK?

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 PICK snapshot

As of June 30, 2026, spot at $58.20, ATM IV 42.90%, IV rank 70.26%, expected move 12.30%. The butterfly on PICK 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 17-day expiry.

Why this butterfly structure on PICK specifically: PICK IV at 42.90% is rich versus its 1-year range, which makes a premium-buying PICK butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 12.30% (roughly $7.16 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PICK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PICK should anchor to the underlying notional of $58.20 per share and to the trader's directional view on PICK etf.

PICK butterfly setup

The PICK 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 PICK near $58.20, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PICK chain at a 17-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 PICK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$55.00	$4.28
Sell 2	Call	$60.00	$1.65
Buy 1	Call	$60.00	$1.65

PICK butterfly risk and reward

Net Premium / Debit: -$262.50
Max Profit (per contract): $237.50
Max Loss (per contract): -$262.50
Breakeven(s): $57.63
Risk / Reward Ratio: 0.905

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.

PICK butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PICK. 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%	-$262.50
$12.88	-77.9%	-$262.50
$25.74	-55.8%	-$262.50
$38.61	-33.7%	-$262.50
$51.48	-11.5%	-$262.50
$64.35	+10.6%	+$237.50
$77.21	+32.7%	+$237.50
$90.08	+54.8%	+$237.50
$102.95	+76.9%	+$237.50
$115.82	+99.0%	+$237.50

When traders use butterfly on PICK

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

PICK thesis for this butterfly

The market-implied 1-standard-deviation range for PICK extends from approximately $51.04 on the downside to $65.36 on the upside. A PICK long call butterfly is a pinning play: it pays maximum at the middle strike if PICK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PICK IV rank near 70.26% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PICK at 42.90%. As a Financial Services name, PICK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PICK-specific events.

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

Frequently asked questions

What is a butterfly on PICK?: A butterfly on PICK is the butterfly strategy applied to PICK (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 PICK etf trading near $58.20, the strikes shown on this page are snapped to the nearest listed PICK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PICK 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 PICK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $237.50 per contract and the computed maximum loss is -$262.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PICK butterfly?: The breakeven for the PICK butterfly priced on this page is roughly $57.63 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 PICK market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PICK?: Butterflies on PICK are pinning bets - traders use them when they expect PICK 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 PICK implied volatility affect this butterfly?: PICK ATM IV is at 42.90% with IV rank near 70.26%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.