How are ROE 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 ROE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.40%), the computed maximum profit is $186.50 per contract and the computed maximum loss is -$12.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ROE butterfly?

The breakeven for the ROE butterfly priced on this page is roughly $38.12 and $41.89 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 ROE market-implied 1-standard-deviation expected move is approximately 8.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ROE implied volatility affect this butterfly?

ROE ATM IV is at 28.40% with IV rank near 15.54%, 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.

ROE Butterfly Strategy

ROE (Astoria US Equal Weight Quality Kings ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

ROE holds a portfolio of US, large- and mid-cap stocks believed to have the highest quality, valuation, dividend potential, and growth metrics across sectors. The fund aims for an equally weighted and sector-optimized portfolio. The sub-adviser's proprietary quantitative screen evaluates securities while attempting a sector-optimized selection by using metrics that vary in quality and robustness. Factors such as ROE, ROI, P/E ratio, dividend yield, projected growth estimates, and earnings momentum are considered but only metrics that best define a sector are utilized. The top 50-100 stocks based on their weighted average rank on each factor are selected. The sub-adviser monitors investments through its quantitative and systematic approach to best position the fund for changing economic trends valuations or earnings.

ROE (Astoria US Equal Weight Quality Kings ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $187.8M, a beta of 1.05 versus the broader market, a 52-week range of 30.26-40.24, average daily share volume of 47K, a public-listing history dating back to 2023. These structural characteristics shape how ROE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.05 places ROE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ROE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ROE?

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 ROE snapshot

As of May 15, 2026, spot at $39.81, ATM IV 28.40%, IV rank 15.54%, expected move 8.14%. The butterfly on ROE 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 ROE specifically: ROE IV at 28.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a ROE butterfly, with a market-implied 1-standard-deviation move of approximately 8.14% (roughly $3.24 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 ROE expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROE should anchor to the underlying notional of $39.81 per share and to the trader's directional view on ROE etf.

ROE butterfly setup

The ROE 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 ROE near $39.81, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROE 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 ROE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$38.00	$2.20
Sell 2	Call	$40.00	$1.35
Buy 1	Call	$42.00	$0.62

ROE butterfly risk and reward

Net Premium / Debit: -$12.00
Max Profit (per contract): $186.50
Max Loss (per contract): -$12.00
Breakeven(s): $38.12, $41.89
Risk / Reward Ratio: 15.541

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.

ROE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ROE. 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%	-$12.00
$8.81	-77.9%	-$12.00
$17.61	-55.8%	-$12.00
$26.41	-33.7%	-$12.00
$35.21	-11.5%	-$12.00
$44.02	+10.6%	-$12.00
$52.82	+32.7%	-$12.00
$61.62	+54.8%	-$12.00
$70.42	+76.9%	-$12.00
$79.22	+99.0%	-$12.00

When traders use butterfly on ROE

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

ROE thesis for this butterfly

The market-implied 1-standard-deviation range for ROE extends from approximately $36.57 on the downside to $43.05 on the upside. A ROE long call butterfly is a pinning play: it pays maximum at the middle strike if ROE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ROE IV rank near 15.54% 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 ROE at 28.40%. As a Financial Services name, ROE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROE-specific events.

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

Frequently asked questions

What is a butterfly on ROE?: A butterfly on ROE is the butterfly strategy applied to ROE (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 ROE etf trading near $39.81, the strikes shown on this page are snapped to the nearest listed ROE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ROE 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 ROE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.40%), the computed maximum profit is $186.50 per contract and the computed maximum loss is -$12.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ROE butterfly?: The breakeven for the ROE butterfly priced on this page is roughly $38.12 and $41.89 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 ROE market-implied 1-standard-deviation expected move is approximately 8.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ROE?: Butterflies on ROE are pinning bets - traders use them when they expect ROE 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 ROE implied volatility affect this butterfly?: ROE ATM IV is at 28.40% with IV rank near 15.54%, 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.