How are QEMM 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 QEMM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.30%), the computed maximum profit is $247.44 per contract and the computed maximum loss is -$144.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a QEMM butterfly?

The breakeven for the QEMM butterfly priced on this page is roughly $76.40 and $81.56 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 QEMM market-implied 1-standard-deviation expected move is approximately 8.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current QEMM implied volatility affect this butterfly?

QEMM ATM IV is at 29.30% with IV rank near 62.28%, 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.

QEMM Butterfly Strategy

QEMM (State Street SPDR MSCI Emerging Markets StrategicFactors ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The State Street SPDR MSCI Emerging Markets StrategicFactors ETF aims to mirror the total returns of its benchmark, the MSCI Emerging Markets Factor Mix A-Series Index, before accounting for any associated fees and costs. This fund employs a Smart Beta methodology, tracking an index that cohesively blends specific investment factors: low volatility, quality, and value. The resulting portfolio construction aims to deliver a strategy with potentially reduced volatility, while maintaining an equal emphasis on robust, high-quality firms and those considered undervalued. These multi-factor Smart Beta approaches bridge the gap between traditional active and passive investment management, empowering investors to re-evaluate their market exposures and strive for more efficient, risk-adjusted growth.

QEMM (State Street SPDR MSCI Emerging Markets StrategicFactors ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $53.6M, a beta of 0.93 versus the broader market, a 52-week range of 62.45-82.49, average daily share volume of 4K, a public-listing history dating back to 2014. These structural characteristics shape how QEMM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.93 places QEMM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QEMM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on QEMM?

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 QEMM snapshot

As of June 30, 2026, spot at $79.48, ATM IV 29.30%, IV rank 62.28%, expected move 8.40%. The butterfly on QEMM 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 QEMM specifically: QEMM IV at 29.30% 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 8.40% (roughly $6.68 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 QEMM expiries trade a higher absolute premium for lower per-day decay. Position sizing on QEMM should anchor to the underlying notional of $79.48 per share and to the trader's directional view on QEMM etf.

QEMM butterfly setup

The QEMM 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 QEMM near $79.48, the first option leg uses a $76.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QEMM 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 QEMM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$76.00	$4.55
Sell 2	Call	$79.00	$2.38
Buy 1	Call	$83.00	$0.64

QEMM butterfly risk and reward

Net Premium / Debit: -$44.00
Max Profit (per contract): $247.44
Max Loss (per contract): -$144.00
Breakeven(s): $76.40, $81.56
Risk / Reward Ratio: 1.718

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.

QEMM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on QEMM. 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%	-$44.00
$17.58	-77.9%	-$44.00
$35.15	-55.8%	-$44.00
$52.73	-33.7%	-$44.00
$70.30	-11.6%	-$44.00
$87.87	+10.6%	-$144.00
$105.44	+32.7%	-$144.00
$123.02	+54.8%	-$144.00
$140.59	+76.9%	-$144.00
$158.16	+99.0%	-$144.00

When traders use butterfly on QEMM

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

QEMM thesis for this butterfly

The market-implied 1-standard-deviation range for QEMM extends from approximately $72.80 on the downside to $86.16 on the upside. A QEMM long call butterfly is a pinning play: it pays maximum at the middle strike if QEMM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QEMM IV rank near 62.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on QEMM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, QEMM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QEMM-specific events.

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

Frequently asked questions

What is a butterfly on QEMM?: A butterfly on QEMM is the butterfly strategy applied to QEMM (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 QEMM etf trading near $79.48, the strikes shown on this page are snapped to the nearest listed QEMM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are QEMM 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 QEMM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.30%), the computed maximum profit is $247.44 per contract and the computed maximum loss is -$144.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a QEMM butterfly?: The breakeven for the QEMM butterfly priced on this page is roughly $76.40 and $81.56 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 QEMM market-implied 1-standard-deviation expected move is approximately 8.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on QEMM?: Butterflies on QEMM are pinning bets - traders use them when they expect QEMM 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 QEMM implied volatility affect this butterfly?: QEMM ATM IV is at 29.30% with IV rank near 62.28%, 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.