How are PNQI 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 PNQI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $217.82 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PNQI butterfly?

The breakeven for the PNQI butterfly priced on this page is roughly $50.29 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 PNQI market-implied 1-standard-deviation expected move is approximately 8.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PNQI implied volatility affect this butterfly?

PNQI ATM IV is at 30.10% with IV rank near 44.30%, 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.

PNQI Butterfly Strategy

PNQI (Invesco NASDAQ Internet ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Invesco NASDAQ Internet ETF (Fund) is based on the Nasdaq CTA Internet IndexSM(Index). The Fund will normally invest at least 90% of its total assets securities that comprise the Index. The Index is designed to track the performance of companies engaged in Internet-related businesses that are listed on the New York Stock Exchange (“NYSE”), NYSE American, Cboe Exchange (“Cboe”) or The Nasdaq Stock Market (“Nasdaq”). Companies in the Index primary business include Internet-related services including, but not limited to, Internet software, Internet search engines, web hosting, website design or Internet retail commerce as determined by the Consumer Technology Association (CTA). The Fund and the Index are rebalanced and reconstituted quarterly.

PNQI (Invesco NASDAQ Internet ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $547.2M, a beta of 1.21 versus the broader market, a 52-week range of 42.8-57.22, average daily share volume of 70K, a public-listing history dating back to 2008. These structural characteristics shape how PNQI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.21 places PNQI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PNQI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PNQI?

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 PNQI snapshot

As of May 15, 2026, spot at $48.13, ATM IV 30.10%, IV rank 44.30%, expected move 8.63%. The butterfly on PNQI 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 34-day expiry.

Why this butterfly structure on PNQI specifically: PNQI IV at 30.10% 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 8.63% (roughly $4.15 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PNQI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PNQI should anchor to the underlying notional of $48.13 per share and to the trader's directional view on PNQI etf.

PNQI butterfly setup

The PNQI 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 PNQI near $48.13, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PNQI chain at a 34-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 PNQI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$46.00	$2.83
Sell 2	Call	$48.00	$1.96
Buy 1	Call	$51.00	$0.81

PNQI butterfly risk and reward

Net Premium / Debit: +$28.50
Max Profit (per contract): $217.82
Max Loss (per contract): -$71.50
Breakeven(s): $50.29
Risk / Reward Ratio: 3.046

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.

PNQI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PNQI. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$28.50
$10.65	-77.9%	+$28.50
$21.29	-55.8%	+$28.50
$31.93	-33.7%	+$28.50
$42.57	-11.5%	+$28.50
$53.21	+10.6%	-$71.50
$63.85	+32.7%	-$71.50
$74.49	+54.8%	-$71.50
$85.14	+76.9%	-$71.50
$95.78	+99.0%	-$71.50

When traders use butterfly on PNQI

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

PNQI thesis for this butterfly

The market-implied 1-standard-deviation range for PNQI extends from approximately $43.98 on the downside to $52.28 on the upside. A PNQI long call butterfly is a pinning play: it pays maximum at the middle strike if PNQI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PNQI IV rank near 44.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PNQI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PNQI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PNQI-specific events.

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

Frequently asked questions

What is a butterfly on PNQI?: A butterfly on PNQI is the butterfly strategy applied to PNQI (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 PNQI etf trading near $48.13, the strikes shown on this page are snapped to the nearest listed PNQI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PNQI 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 PNQI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $217.82 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PNQI butterfly?: The breakeven for the PNQI butterfly priced on this page is roughly $50.29 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 PNQI market-implied 1-standard-deviation expected move is approximately 8.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PNQI?: Butterflies on PNQI are pinning bets - traders use them when they expect PNQI 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 PNQI implied volatility affect this butterfly?: PNQI ATM IV is at 30.10% with IV rank near 44.30%, 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.