How are REGL 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 REGL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.70%), the computed maximum profit is $320.46 per contract and the computed maximum loss is -$170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a REGL butterfly?

The breakeven for the REGL butterfly priced on this page is roughly $88.70 and $95.30 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 REGL market-implied 1-standard-deviation expected move is approximately 6.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current REGL implied volatility affect this butterfly?

REGL ATM IV is at 21.70% with IV rank near 42.97%, 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.

REGL Butterfly Strategy

REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.

Under ordinary market conditions, this fund is structured to commit a significant majority—at least 80% of its overall investments—to the specific stocks that make up its reference index. This underlying index is composed of a minimum of 40 individual companies, each assigned an identical weighting within the portfolio. Furthermore, to promote diversification, no single industry sector is permitted to constitute more than 30% of the index's total value.

REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $1.68B, a beta of 0.70 versus the broader market, a 52-week range of 80.52-93.738, average daily share volume of 53K, a public-listing history dating back to 2015. These structural characteristics shape how REGL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.70 places REGL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. REGL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on REGL?

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 REGL snapshot

As of June 29, 2026, spot at $91.63, ATM IV 21.70%, IV rank 42.97%, expected move 6.22%. The butterfly on REGL 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 109-day expiry.

Why this butterfly structure on REGL specifically: REGL IV at 21.70% 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 6.22% (roughly $5.70 on the underlying). The 109-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REGL should anchor to the underlying notional of $91.63 per share and to the trader's directional view on REGL etf.

REGL butterfly setup

The REGL 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 REGL near $91.63, the first option leg uses a $87.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REGL chain at a 109-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 REGL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$87.00	$6.40
Sell 2	Call	$92.00	$3.65
Buy 1	Call	$96.00	$2.60

REGL butterfly risk and reward

Net Premium / Debit: -$170.00
Max Profit (per contract): $320.46
Max Loss (per contract): -$170.00
Breakeven(s): $88.70, $95.30
Risk / Reward Ratio: 1.885

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.

REGL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on REGL. 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%	-$170.00
$20.27	-77.9%	-$170.00
$40.53	-55.8%	-$170.00
$60.79	-33.7%	-$170.00
$81.05	-11.6%	-$170.00
$101.30	+10.6%	-$70.00
$121.56	+32.7%	-$70.00
$141.82	+54.8%	-$70.00
$162.08	+76.9%	-$70.00
$182.34	+99.0%	-$70.00

When traders use butterfly on REGL

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

REGL thesis for this butterfly

The market-implied 1-standard-deviation range for REGL extends from approximately $85.93 on the downside to $97.33 on the upside. A REGL long call butterfly is a pinning play: it pays maximum at the middle strike if REGL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current REGL IV rank near 42.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on REGL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, REGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REGL-specific events.

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

Frequently asked questions

What is a butterfly on REGL?: A butterfly on REGL is the butterfly strategy applied to REGL (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 REGL etf trading near $91.63, the strikes shown on this page are snapped to the nearest listed REGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are REGL 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 REGL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 21.70%), the computed maximum profit is $320.46 per contract and the computed maximum loss is -$170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a REGL butterfly?: The breakeven for the REGL butterfly priced on this page is roughly $88.70 and $95.30 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 REGL market-implied 1-standard-deviation expected move is approximately 6.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on REGL?: Butterflies on REGL are pinning bets - traders use them when they expect REGL 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 REGL implied volatility affect this butterfly?: REGL ATM IV is at 21.70% with IV rank near 42.97%, 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.