How are PSCD 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 PSCD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is $382.39 per contract and the computed maximum loss is -$297.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSCD butterfly?

The breakeven for the PSCD butterfly priced on this page is roughly $97.97 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 PSCD market-implied 1-standard-deviation expected move is approximately 8.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSCD implied volatility affect this butterfly?

PSCD ATM IV is at 28.20% with IV rank near 2.25%, 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.

PSCD Butterfly Strategy

PSCD (Invesco S&P SmallCap Consumer Discretionary ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Invesco S&P SmallCap Consumer Discretionary ETF (Fund) is based on the S&P SmallCap 600 Capped Consumer Discretionary Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to measure the overall performance of common stocks of US consumer discretionary companies. These companies are principally engaged in providing consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and real estate.The Index is a subset of the S&P SmallCap 600 Index, which is a float-adjusted, market-capitalization-weighted index reflecting the US small-cap market. The Fund and the Index are rebalanced and reconstituted quarterly.

PSCD (Invesco S&P SmallCap Consumer Discretionary ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $22.3M, a beta of 1.55 versus the broader market, a 52-week range of 95.84-117.1, average daily share volume of 1K, a public-listing history dating back to 2010. These structural characteristics shape how PSCD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.55 indicates PSCD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PSCD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PSCD?

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 PSCD snapshot

As of May 15, 2026, spot at $101.28, ATM IV 28.20%, IV rank 2.25%, expected move 8.08%. The butterfly on PSCD 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 PSCD specifically: PSCD IV at 28.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSCD butterfly, with a market-implied 1-standard-deviation move of approximately 8.08% (roughly $8.19 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 PSCD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSCD should anchor to the underlying notional of $101.28 per share and to the trader's directional view on PSCD etf.

PSCD butterfly setup

The PSCD 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 PSCD near $101.28, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSCD 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 PSCD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$95.00	$7.90
Sell 2	Call	$102.00	$3.33
Buy 1	Call	$106.00	$1.72

PSCD butterfly risk and reward

Net Premium / Debit: -$297.00
Max Profit (per contract): $382.39
Max Loss (per contract): -$297.00
Breakeven(s): $97.97
Risk / Reward Ratio: 1.288

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.

PSCD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PSCD. 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%	-$297.00
$22.40	-77.9%	-$297.00
$44.79	-55.8%	-$297.00
$67.19	-33.7%	-$297.00
$89.58	-11.6%	-$297.00
$111.97	+10.6%	+$3.00
$134.36	+32.7%	+$3.00
$156.76	+54.8%	+$3.00
$179.15	+76.9%	+$3.00
$201.54	+99.0%	+$3.00

When traders use butterfly on PSCD

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

PSCD thesis for this butterfly

The market-implied 1-standard-deviation range for PSCD extends from approximately $93.09 on the downside to $109.47 on the upside. A PSCD long call butterfly is a pinning play: it pays maximum at the middle strike if PSCD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PSCD IV rank near 2.25% 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 PSCD at 28.20%. As a Financial Services name, PSCD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSCD-specific events.

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

Frequently asked questions

What is a butterfly on PSCD?: A butterfly on PSCD is the butterfly strategy applied to PSCD (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 PSCD etf trading near $101.28, the strikes shown on this page are snapped to the nearest listed PSCD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSCD 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 PSCD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.20%), the computed maximum profit is $382.39 per contract and the computed maximum loss is -$297.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSCD butterfly?: The breakeven for the PSCD butterfly priced on this page is roughly $97.97 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 PSCD market-implied 1-standard-deviation expected move is approximately 8.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PSCD?: Butterflies on PSCD are pinning bets - traders use them when they expect PSCD 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 PSCD implied volatility affect this butterfly?: PSCD ATM IV is at 28.20% with IV rank near 2.25%, 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.