QNXT Butterfly Strategy
QNXT (iShares Nasdaq-100 ex Top 30 ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The iShares Nasdaq-100 ex Top 30 ETF seeks to track the investment results of an index composed of the 31st -100th largest companies by market capitalization within the Nasdaq-100 Index.
QNXT (iShares Nasdaq-100 ex Top 30 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $17.6M, a beta of 1.08 versus the broader market, a 52-week range of 24.86-29.63, average daily share volume of 1K, a public-listing history dating back to 2024. These structural characteristics shape how QNXT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places QNXT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QNXT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on QNXT?
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 QNXT snapshot
As of May 15, 2026, spot at $29.50, ATM IV 29.20%, IV rank 28.97%, expected move 8.37%. The butterfly on QNXT 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 QNXT specifically: QNXT IV at 29.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a QNXT butterfly, with a market-implied 1-standard-deviation move of approximately 8.37% (roughly $2.47 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 QNXT expiries trade a higher absolute premium for lower per-day decay. Position sizing on QNXT should anchor to the underlying notional of $29.50 per share and to the trader's directional view on QNXT etf.
QNXT butterfly setup
The QNXT 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 QNXT near $29.50, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QNXT 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 QNXT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.00 | $1.75 |
| Sell 2 | Call | $29.00 | $1.34 |
| Buy 1 | Call | $31.00 | $0.51 |
QNXT butterfly risk and reward
- Net Premium / Debit
- +$42.00
- Max Profit (per contract)
- $135.96
- Max Loss (per contract)
- -$58.00
- Breakeven(s)
- $30.42
- Risk / Reward Ratio
- 2.344
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.
QNXT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on QNXT. 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% | +$42.00 |
| $6.53 | -77.9% | +$42.00 |
| $13.05 | -55.8% | +$42.00 |
| $19.57 | -33.6% | +$42.00 |
| $26.10 | -11.5% | +$42.00 |
| $32.62 | +10.6% | -$58.00 |
| $39.14 | +32.7% | -$58.00 |
| $45.66 | +54.8% | -$58.00 |
| $52.18 | +76.9% | -$58.00 |
| $58.70 | +99.0% | -$58.00 |
When traders use butterfly on QNXT
Butterflies on QNXT are pinning bets - traders use them when they expect QNXT 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.
QNXT thesis for this butterfly
The market-implied 1-standard-deviation range for QNXT extends from approximately $27.03 on the downside to $31.97 on the upside. A QNXT long call butterfly is a pinning play: it pays maximum at the middle strike if QNXT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QNXT IV rank near 28.97% 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 QNXT at 29.20%. As a Financial Services name, QNXT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QNXT-specific events.
QNXT 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. QNXT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QNXT alongside the broader basket even when QNXT-specific fundamentals are unchanged. Always rebuild the position from current QNXT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on QNXT?
- A butterfly on QNXT is the butterfly strategy applied to QNXT (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 QNXT etf trading near $29.50, the strikes shown on this page are snapped to the nearest listed QNXT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QNXT 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 QNXT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.20%), the computed maximum profit is $135.96 per contract and the computed maximum loss is -$58.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QNXT butterfly?
- The breakeven for the QNXT butterfly priced on this page is roughly $30.42 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 QNXT market-implied 1-standard-deviation expected move is approximately 8.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on QNXT?
- Butterflies on QNXT are pinning bets - traders use them when they expect QNXT 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 QNXT implied volatility affect this butterfly?
- QNXT ATM IV is at 29.20% with IV rank near 28.97%, 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.