How are PSCH 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 PSCH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.90%), the computed maximum profit is $216.32 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 PSCH butterfly?

The breakeven for the PSCH butterfly priced on this page is roughly $54.29 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 PSCH market-implied 1-standard-deviation expected move is approximately 9.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSCH implied volatility affect this butterfly?

PSCH ATM IV is at 33.90% with IV rank near 33.91%, 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.

PSCH Butterfly Strategy

PSCH (Invesco S&P SmallCap Health Care ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

Invesco Exchange-Traded Fund Trust II - Invesco S&P SmallCap Health Care ETF is an exchange traded fund launched and managed by Invesco Capital Management LLC. It invests in public equity markets of the United States. It invests in stocks of companies operating across health care sectors. It invests in growth and value stocks of small-cap companies. It seeks to track the performance of the S&P SmallCap 600 Capped Health Care Index, by using full replication technique. Invesco Exchange-Traded Fund Trust II - Invesco S&P SmallCap Health Care ETF was formed on April 7, 2010 and is domiciled in the United States.

PSCH (Invesco S&P SmallCap Health Care ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $181.4M, a beta of 1.04 versus the broader market, a 52-week range of 37.45-52.6, average daily share volume of 17K, a public-listing history dating back to 2010. These structural characteristics shape how PSCH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places PSCH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PSCH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PSCH?

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 PSCH snapshot

As of June 30, 2026, spot at $52.38, ATM IV 33.90%, IV rank 33.91%, expected move 9.72%. The butterfly on PSCH 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 PSCH specifically: PSCH IV at 33.90% 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 9.72% (roughly $5.09 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 PSCH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSCH should anchor to the underlying notional of $52.38 per share and to the trader's directional view on PSCH etf.

PSCH butterfly setup

The PSCH 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 PSCH near $52.38, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSCH 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 PSCH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$50.00	$2.63
Sell 2	Call	$52.00	$1.77
Buy 1	Call	$55.00	$0.63

PSCH butterfly risk and reward

Net Premium / Debit: +$28.50
Max Profit (per contract): $216.32
Max Loss (per contract): -$71.50
Breakeven(s): $54.29
Risk / Reward Ratio: 3.025

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.

PSCH butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PSCH. 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%	+$28.50
$11.59	-77.9%	+$28.50
$23.17	-55.8%	+$28.50
$34.75	-33.7%	+$28.50
$46.33	-11.5%	+$28.50
$57.91	+10.6%	-$71.50
$69.49	+32.7%	-$71.50
$81.07	+54.8%	-$71.50
$92.65	+76.9%	-$71.50
$104.23	+99.0%	-$71.50

When traders use butterfly on PSCH

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

PSCH thesis for this butterfly

The market-implied 1-standard-deviation range for PSCH extends from approximately $47.29 on the downside to $57.47 on the upside. A PSCH long call butterfly is a pinning play: it pays maximum at the middle strike if PSCH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PSCH IV rank near 33.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PSCH should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PSCH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSCH-specific events.

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

Frequently asked questions

What is a butterfly on PSCH?: A butterfly on PSCH is the butterfly strategy applied to PSCH (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 PSCH etf trading near $52.38, the strikes shown on this page are snapped to the nearest listed PSCH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSCH 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 PSCH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.90%), the computed maximum profit is $216.32 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 PSCH butterfly?: The breakeven for the PSCH butterfly priced on this page is roughly $54.29 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 PSCH market-implied 1-standard-deviation expected move is approximately 9.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PSCH?: Butterflies on PSCH are pinning bets - traders use them when they expect PSCH 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 PSCH implied volatility affect this butterfly?: PSCH ATM IV is at 33.90% with IV rank near 33.91%, 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.