How are PXF 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 PXF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $315.75 per contract and the computed maximum loss is -$59.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PXF butterfly?

The breakeven for the PXF butterfly priced on this page is roughly $71.58 and $78.41 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 PXF market-implied 1-standard-deviation expected move is approximately 9.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PXF implied volatility affect this butterfly?

PXF ATM IV is at 33.00% with IV rank near 22.71%, 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.

PXF Butterfly Strategy

PXF (Invesco RAFI Developed Markets ex-U.S. ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco RAFI Developed Markets ex-U.S. ETF (PXF) aims to replicate the performance of the RAFI Fundamental Select Developed ex US 1000 Index. This Fund typically allocates at least 90% of its total assets to the securities comprising this Index, which may include American and global depositary receipts representing these underlying holdings. The Index itself is designed to capture the performance of the biggest companies in developed markets, excluding the United States, by selecting them based on four fundamental financial metrics: book value, cash flow, sales figures, and dividends paid. Companies demonstrating superior fundamental strength are weighted proportionally to their fundamental scores. The Index's performance is calculated using net returns, factoring in taxes applicable to non-resident investors.

PXF (Invesco RAFI Developed Markets ex-U.S. ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.94B, a beta of 0.92 versus the broader market, a 52-week range of 56.77-78.96, average daily share volume of 95K, a public-listing history dating back to 2007. These structural characteristics shape how PXF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.92 places PXF roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PXF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PXF?

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 PXF snapshot

As of June 29, 2026, spot at $75.12, ATM IV 33.00%, IV rank 22.71%, expected move 9.46%. The butterfly on PXF 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 PXF specifically: PXF IV at 33.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a PXF butterfly, with a market-implied 1-standard-deviation move of approximately 9.46% (roughly $7.11 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 PXF expiries trade a higher absolute premium for lower per-day decay. Position sizing on PXF should anchor to the underlying notional of $75.12 per share and to the trader's directional view on PXF etf.

PXF butterfly setup

The PXF 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 PXF near $75.12, the first option leg uses a $71.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PXF 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 PXF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$71.00	$4.50
Sell 2	Call	$75.00	$2.40
Buy 1	Call	$79.00	$0.89

PXF butterfly risk and reward

Net Premium / Debit: -$59.00
Max Profit (per contract): $315.75
Max Loss (per contract): -$59.00
Breakeven(s): $71.58, $78.41
Risk / Reward Ratio: 5.352

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.

PXF butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PXF. 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%	-$59.00
$16.62	-77.9%	-$59.00
$33.23	-55.8%	-$59.00
$49.84	-33.7%	-$59.00
$66.44	-11.6%	-$59.00
$83.05	+10.6%	-$59.00
$99.66	+32.7%	-$59.00
$116.27	+54.8%	-$59.00
$132.88	+76.9%	-$59.00
$149.49	+99.0%	-$59.00

When traders use butterfly on PXF

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

PXF thesis for this butterfly

The market-implied 1-standard-deviation range for PXF extends from approximately $68.01 on the downside to $82.23 on the upside. A PXF long call butterfly is a pinning play: it pays maximum at the middle strike if PXF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PXF IV rank near 22.71% 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 PXF at 33.00%. As a Financial Services name, PXF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PXF-specific events.

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

Frequently asked questions

What is a butterfly on PXF?: A butterfly on PXF is the butterfly strategy applied to PXF (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 PXF etf trading near $75.12, the strikes shown on this page are snapped to the nearest listed PXF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PXF 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 PXF butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $315.75 per contract and the computed maximum loss is -$59.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PXF butterfly?: The breakeven for the PXF butterfly priced on this page is roughly $71.58 and $78.41 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 PXF market-implied 1-standard-deviation expected move is approximately 9.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PXF?: Butterflies on PXF are pinning bets - traders use them when they expect PXF 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 PXF implied volatility affect this butterfly?: PXF ATM IV is at 33.00% with IV rank near 22.71%, 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.