How are RDIV 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 RDIV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.60%), the computed maximum profit is $233.41 per contract and the computed maximum loss is -$47.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RDIV butterfly?

The breakeven for the RDIV butterfly priced on this page is roughly $53.47 and $58.53 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 RDIV market-implied 1-standard-deviation expected move is approximately 8.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RDIV implied volatility affect this butterfly?

RDIV ATM IV is at 30.60% with IV rank near 17.24%, 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.

RDIV Butterfly Strategy

RDIV (Invesco S&P Ultra Dividend Revenue ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco S&P Ultra Dividend Revenue ETF (Fund) is based on the S&P 900 Dividend Revenue-Weighted Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index is constructed using a rule-based methodology that starts with the S&P 900 Index and (1) excludes the top 5% of securities by dividend yield, (2) excludes the top 5% of securities within each sector by dividend payout ratio, (3) selects the top sixty securities by dividend yield and (4) re-weights those securities according to the revenue earned by the companies, with a maximum 5% per company weighting. The Fund and Index are reconstituted and rebalanced quarterly according to dividend yields and revenue weightings. As of 08/31/2025 the Fund had an overall rating of 4 stars out of 378 funds and was rated 3 stars out of 378 funds, 5 stars out of 355 funds and 3 stars out of 282 funds for the 3-, 5- and 10- year periods, respectively. Source: Morningstar Inc.

RDIV (Invesco S&P Ultra Dividend Revenue ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $944.1M, a beta of 0.85 versus the broader market, a 52-week range of 45.9-57.51, average daily share volume of 58K, a public-listing history dating back to 2013. These structural characteristics shape how RDIV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places RDIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RDIV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RDIV?

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 RDIV snapshot

As of May 15, 2026, spot at $55.91, ATM IV 30.60%, IV rank 17.24%, expected move 8.77%. The butterfly on RDIV 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 RDIV specifically: RDIV IV at 30.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a RDIV butterfly, with a market-implied 1-standard-deviation move of approximately 8.77% (roughly $4.90 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 RDIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDIV should anchor to the underlying notional of $55.91 per share and to the trader's directional view on RDIV etf.

RDIV butterfly setup

The RDIV 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 RDIV near $55.91, the first option leg uses a $53.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDIV 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 RDIV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$53.00	$3.80
Sell 2	Call	$56.00	$2.17
Buy 1	Call	$59.00	$1.01

RDIV butterfly risk and reward

Net Premium / Debit: -$47.00
Max Profit (per contract): $233.41
Max Loss (per contract): -$47.00
Breakeven(s): $53.47, $58.53
Risk / Reward Ratio: 4.966

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.

RDIV butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RDIV. 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%	-$47.00
$12.37	-77.9%	-$47.00
$24.73	-55.8%	-$47.00
$37.09	-33.7%	-$47.00
$49.45	-11.5%	-$47.00
$61.81	+10.6%	-$47.00
$74.18	+32.7%	-$47.00
$86.54	+54.8%	-$47.00
$98.90	+76.9%	-$47.00
$111.26	+99.0%	-$47.00

When traders use butterfly on RDIV

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

RDIV thesis for this butterfly

The market-implied 1-standard-deviation range for RDIV extends from approximately $51.01 on the downside to $60.81 on the upside. A RDIV long call butterfly is a pinning play: it pays maximum at the middle strike if RDIV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RDIV IV rank near 17.24% 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 RDIV at 30.60%. As a Financial Services name, RDIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDIV-specific events.

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

Frequently asked questions

What is a butterfly on RDIV?: A butterfly on RDIV is the butterfly strategy applied to RDIV (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 RDIV etf trading near $55.91, the strikes shown on this page are snapped to the nearest listed RDIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RDIV 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 RDIV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.60%), the computed maximum profit is $233.41 per contract and the computed maximum loss is -$47.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RDIV butterfly?: The breakeven for the RDIV butterfly priced on this page is roughly $53.47 and $58.53 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 RDIV market-implied 1-standard-deviation expected move is approximately 8.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RDIV?: Butterflies on RDIV are pinning bets - traders use them when they expect RDIV 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 RDIV implied volatility affect this butterfly?: RDIV ATM IV is at 30.60% with IV rank near 17.24%, 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.