How are QQQP 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 QQQP butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.90%), the computed maximum profit is $624.19 per contract and the computed maximum loss is -$307.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a QQQP butterfly?

The breakeven for the QQQP butterfly priced on this page is roughly $223.08 and $236.93 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The QQQP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current QQQP implied volatility affect this butterfly?

QQQP ATM IV is at 36.90% with IV rank near 33.61%, 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.

QQQP Butterfly Strategy

QQQP (Investment Managers Series Trust II -Tradr 2X Long Innovation 100 Quarterly ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

QQQP provides 2x leveraged exposure to the quarterly performance of QQQ, an ETF composed of 100 NASADAQ-listed stocks. The strategy involves entering into one or more swap agreements intended to produce leveraged investment results relative to the returns of QQQ. Unlike traditional ETFs, MQQQ introduces added volatility due to its lack of diversification and use of leverage. Holdings are rebalanced every three months to maintain the 200% exposure. However, if QQQs price drops by 35% or more within this period, the fund will rebalance early to protect against further losses, although this may prevent it from meeting its target return for that quarter To maximize results, the fund places its remaining cash in US government securities, money market funds, short-term bond ETFs, or high-quality corporate debt as collateral. Before May 16, 2025, the fund was named Tradr 2X Long Triple Q Quarterly ETF.

QQQP (Investment Managers Series Trust II -Tradr 2X Long Innovation 100 Quarterly ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $14.6M, a beta of 2.61 versus the broader market, a 52-week range of 139.75-239.8, average daily share volume of 2K, a public-listing history dating back to 2024. These structural characteristics shape how QQQP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.61 indicates QQQP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on QQQP?

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.

QQQP snapshot

As of September 29, 2026, spot at $230.47, ATM IV 36.90%, IV rank 33.61%, expected move 10.58%. The butterfly on QQQP below is built from the September 29, 2026 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 QQQP specifically: QQQP IV at 36.90% 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 10.58% (roughly $24.38 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 QQQP expiries trade a higher absolute premium for lower per-day decay. Position sizing on QQQP should anchor to the underlying notional of $230.47 per share and to the trader's directional view on QQQP etf.

QQQP butterfly setup

The QQQP butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With QQQP at $230.47 on that close, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QQQP 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 QQQP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$220.00	$14.50
Sell 2	Call	$230.00	$7.35
Buy 1	Call	$240.00	$3.28

QQQP butterfly risk and reward

Net Premium / Debit: -$307.50
Max Profit (per contract): $624.19
Max Loss (per contract): -$307.50
Breakeven(s): $223.08, $236.93
Risk / Reward Ratio: 2.030

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.

QQQP butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on QQQP. 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%	-$307.50
$50.97	-77.9%	-$307.50
$101.92	-55.8%	-$307.50
$152.88	-33.7%	-$307.50
$203.84	-11.6%	-$307.50
$254.80	+10.6%	-$307.50
$305.75	+32.7%	-$307.50
$356.71	+54.8%	-$307.50
$407.67	+76.9%	-$307.50
$458.62	+99.0%	-$307.50

When traders use butterfly on QQQP

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

QQQP thesis for this butterfly

The market-implied 1-standard-deviation range for QQQP extends from approximately $206.09 on the downside to $254.85 on the upside. A QQQP long call butterfly is a pinning play: it pays maximum at the middle strike if QQQP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QQQP IV rank near 33.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on QQQP should anchor more to the directional view and the expected-move geometry. As a Financial Services name, QQQP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QQQP-specific events.

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

Frequently asked questions

What is a butterfly on QQQP?: A butterfly on QQQP is the butterfly strategy applied to QQQP (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 QQQP etf at $230.47 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed QQQP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are QQQP 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 QQQP butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.90%), the computed maximum profit is $624.19 per contract and the computed maximum loss is -$307.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a QQQP butterfly?: The breakeven for the QQQP butterfly priced on this page is roughly $223.08 and $236.93 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The QQQP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on QQQP?: Butterflies on QQQP are pinning bets - traders use them when they expect QQQP 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 QQQP implied volatility affect this butterfly?: QQQP ATM IV is at 36.90% with IV rank near 33.61%, 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.