How are PXI 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 PXI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $300.59 per contract and the computed maximum loss is -$172.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PXI butterfly?

The breakeven for the PXI butterfly priced on this page is roughly $56.73 and $63.28 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 PXI market-implied 1-standard-deviation expected move is approximately 9.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PXI implied volatility affect this butterfly?

PXI ATM IV is at 33.80% with IV rank near 59.29%, 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.

PXI Butterfly Strategy

PXI (Invesco Dorsey Wright Energy Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Invesco Dorsey Wright Energy Momentum ETF (Fund) is based on the Dorsey Wright Energy Technical Leaders 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 identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe. The Fund and the Index are rebalanced and reconstituted quarterly.

PXI (Invesco Dorsey Wright Energy Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $47.5M, a beta of 0.46 versus the broader market, a 52-week range of 40.25-62.36, average daily share volume of 20K, a public-listing history dating back to 2006. These structural characteristics shape how PXI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.46 indicates PXI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on PXI?

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 PXI snapshot

As of May 15, 2026, spot at $60.64, ATM IV 33.80%, IV rank 59.29%, expected move 9.69%. The butterfly on PXI 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 PXI specifically: PXI IV at 33.80% 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 9.69% (roughly $5.88 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 PXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PXI should anchor to the underlying notional of $60.64 per share and to the trader's directional view on PXI etf.

PXI butterfly setup

The PXI 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 PXI near $60.64, the first option leg uses a $56.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PXI 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 PXI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$56.00	$5.40
Sell 2	Call	$60.00	$2.83
Buy 1	Call	$65.00	$0.98

PXI butterfly risk and reward

Net Premium / Debit: -$72.50
Max Profit (per contract): $300.59
Max Loss (per contract): -$172.50
Breakeven(s): $56.73, $63.28
Risk / Reward Ratio: 1.743

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.

PXI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on PXI. 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%	-$72.50
$13.42	-77.9%	-$72.50
$26.82	-55.8%	-$72.50
$40.23	-33.7%	-$72.50
$53.64	-11.5%	-$72.50
$67.04	+10.6%	-$172.50
$80.45	+32.7%	-$172.50
$93.86	+54.8%	-$172.50
$107.26	+76.9%	-$172.50
$120.67	+99.0%	-$172.50

When traders use butterfly on PXI

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

PXI thesis for this butterfly

The market-implied 1-standard-deviation range for PXI extends from approximately $54.76 on the downside to $66.52 on the upside. A PXI long call butterfly is a pinning play: it pays maximum at the middle strike if PXI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PXI IV rank near 59.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on PXI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PXI-specific events.

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

Frequently asked questions

What is a butterfly on PXI?: A butterfly on PXI is the butterfly strategy applied to PXI (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 PXI etf trading near $60.64, the strikes shown on this page are snapped to the nearest listed PXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PXI 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 PXI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $300.59 per contract and the computed maximum loss is -$172.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PXI butterfly?: The breakeven for the PXI butterfly priced on this page is roughly $56.73 and $63.28 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 PXI market-implied 1-standard-deviation expected move is approximately 9.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on PXI?: Butterflies on PXI are pinning bets - traders use them when they expect PXI 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 PXI implied volatility affect this butterfly?: PXI ATM IV is at 33.80% with IV rank near 59.29%, 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.