How are QTUM 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 QTUM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 39.70%), the computed maximum profit is $736.75 per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a QTUM butterfly?

The breakeven for the QTUM butterfly priced on this page is roughly $157.48 and $172.53 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 QTUM market-implied 1-standard-deviation expected move is approximately 11.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current QTUM implied volatility affect this butterfly?

QTUM ATM IV is at 39.70% with IV rank near 73.92%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

QTUM Butterfly Strategy

QTUM (Defiance Quantum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

QTUM seeks out companies involved in the development of quantum computing and machine learning technology. Quantum computing refers to hardware and software designed to harness extremely fast computers that leverage the field of quantum mechanics, a branch of physics dealing with particles and their natural behavior. Covered technologies include the development of quantum computers, application of quantum computers, interaction between quantum and traditional computers, hardware and software for machine learning, specialized machinery for semiconductor and integrated circuit packaging, and production/processing of raw materials for quantum computing. Selected constituents are initially weighted equally, with possible downward adjustments for securities with low liquidity. QTUM is rebalanced semi-annually. Effective December 18 2020, The underlying index name changed to BlueStar Machine Learning and Quantum Computing Index with no change in investment strategies.

QTUM (Defiance Quantum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.11B, a beta of 1.64 versus the broader market, a 52-week range of 89.23-170, average daily share volume of 686K, a public-listing history dating back to 2018. These structural characteristics shape how QTUM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.64 indicates QTUM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. QTUM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on QTUM?

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 QTUM snapshot

As of June 30, 2026, spot at $165.67, ATM IV 39.70%, IV rank 73.92%, expected move 11.38%. The butterfly on QTUM 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 QTUM specifically: QTUM IV at 39.70% is rich versus its 1-year range, which makes a premium-buying QTUM butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 11.38% (roughly $18.86 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 QTUM expiries trade a higher absolute premium for lower per-day decay. Position sizing on QTUM should anchor to the underlying notional of $165.67 per share and to the trader's directional view on QTUM etf.

QTUM butterfly setup

The QTUM 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 QTUM near $165.67, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QTUM 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 QTUM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$155.00	$12.00
Sell 2	Call	$165.00	$5.80
Buy 1	Call	$175.00	$2.08

QTUM butterfly risk and reward

Net Premium / Debit: -$247.50
Max Profit (per contract): $736.75
Max Loss (per contract): -$247.50
Breakeven(s): $157.48, $172.53
Risk / Reward Ratio: 2.977

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.

QTUM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on QTUM. 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%	-$247.50
$36.64	-77.9%	-$247.50
$73.27	-55.8%	-$247.50
$109.90	-33.7%	-$247.50
$146.53	-11.6%	-$247.50
$183.16	+10.6%	-$247.50
$219.79	+32.7%	-$247.50
$256.42	+54.8%	-$247.50
$293.05	+76.9%	-$247.50
$329.68	+99.0%	-$247.50

When traders use butterfly on QTUM

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

QTUM thesis for this butterfly

The market-implied 1-standard-deviation range for QTUM extends from approximately $146.81 on the downside to $184.53 on the upside. A QTUM long call butterfly is a pinning play: it pays maximum at the middle strike if QTUM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QTUM IV rank near 73.92% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on QTUM at 39.70%. As a Financial Services name, QTUM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QTUM-specific events.

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

Frequently asked questions

What is a butterfly on QTUM?: A butterfly on QTUM is the butterfly strategy applied to QTUM (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 QTUM etf trading near $165.67, the strikes shown on this page are snapped to the nearest listed QTUM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are QTUM 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 QTUM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 39.70%), the computed maximum profit is $736.75 per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a QTUM butterfly?: The breakeven for the QTUM butterfly priced on this page is roughly $157.48 and $172.53 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 QTUM market-implied 1-standard-deviation expected move is approximately 11.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on QTUM?: Butterflies on QTUM are pinning bets - traders use them when they expect QTUM 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 QTUM implied volatility affect this butterfly?: QTUM ATM IV is at 39.70% with IV rank near 73.92%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.