QQQI Butterfly Strategy
QQQI (NEOS Nasdaq-100 High Income ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The NEOS Nasdaq-100 High Income ETF (the “Fund”) seeks to generate high monthly income in a tax efficient manner with the potential for equity appreciation.
QQQI (NEOS Nasdaq-100 High Income ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $5.37B, a beta of 0.90 versus the broader market, a 52-week range of 47.87-56.76, average daily share volume of 6.3M, a public-listing history dating back to 2024. These structural characteristics shape how QQQI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places QQQI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QQQI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on QQQI?
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 QQQI snapshot
As of May 15, 2026, spot at $56.48, ATM IV 14.20%, IV rank 51.36%, expected move 4.07%. The butterfly on QQQI 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 QQQI specifically: QQQI IV at 14.20% 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 4.07% (roughly $2.30 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 QQQI expiries trade a higher absolute premium for lower per-day decay. Position sizing on QQQI should anchor to the underlying notional of $56.48 per share and to the trader's directional view on QQQI etf.
QQQI butterfly setup
The QQQI 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 QQQI near $56.48, the first option leg uses a $54.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QQQI 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 QQQI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $54.00 | $2.50 |
| Sell 2 | Call | $56.00 | $0.88 |
| Buy 1 | Call | $59.00 | $0.08 |
QQQI butterfly risk and reward
- Net Premium / Debit
- -$82.50
- Max Profit (per contract)
- $97.38
- Max Loss (per contract)
- -$182.50
- Breakeven(s)
- $54.83, $57.18
- Risk / Reward Ratio
- 0.534
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.
QQQI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on QQQI. 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% | -$82.50 |
| $12.50 | -77.9% | -$82.50 |
| $24.98 | -55.8% | -$82.50 |
| $37.47 | -33.7% | -$82.50 |
| $49.96 | -11.5% | -$82.50 |
| $62.44 | +10.6% | -$182.50 |
| $74.93 | +32.7% | -$182.50 |
| $87.42 | +54.8% | -$182.50 |
| $99.91 | +76.9% | -$182.50 |
| $112.39 | +99.0% | -$182.50 |
When traders use butterfly on QQQI
Butterflies on QQQI are pinning bets - traders use them when they expect QQQI 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.
QQQI thesis for this butterfly
The market-implied 1-standard-deviation range for QQQI extends from approximately $54.18 on the downside to $58.78 on the upside. A QQQI long call butterfly is a pinning play: it pays maximum at the middle strike if QQQI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QQQI IV rank near 51.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on QQQI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, QQQI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QQQI-specific events.
QQQI 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. QQQI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QQQI alongside the broader basket even when QQQI-specific fundamentals are unchanged. Always rebuild the position from current QQQI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on QQQI?
- A butterfly on QQQI is the butterfly strategy applied to QQQI (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 QQQI etf trading near $56.48, the strikes shown on this page are snapped to the nearest listed QQQI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QQQI 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 QQQI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 14.20%), the computed maximum profit is $97.38 per contract and the computed maximum loss is -$182.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QQQI butterfly?
- The breakeven for the QQQI butterfly priced on this page is roughly $54.83 and $57.18 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 QQQI market-implied 1-standard-deviation expected move is approximately 4.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on QQQI?
- Butterflies on QQQI are pinning bets - traders use them when they expect QQQI 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 QQQI implied volatility affect this butterfly?
- QQQI ATM IV is at 14.20% with IV rank near 51.36%, 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.