How are ROKT 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 ROKT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $399.04 per contract and the computed maximum loss is -$545.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ROKT butterfly?

The breakeven for the ROKT butterfly priced on this page is roughly $115.45 and $124.69 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 ROKT market-implied 1-standard-deviation expected move is approximately 9.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ROKT implied volatility affect this butterfly?

ROKT ATM IV is at 33.80% with IV rank near 3.77%, 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.

ROKT Butterfly Strategy

ROKT (State Street SPDR S&P Kensho Final Frontiers ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The State Street SPDR S&P Kensho Final Frontiers ETF aims to replicate the total return performance of the S&P Kensho Final Frontiers Index, before accounting for fees and expenses. This index is designed using artificial intelligence and a sophisticated quantitative weighting system, with the objective of identifying and including companies whose groundbreaking products and services are at the forefront of exploring the "final frontiers," which encompass both outer space and the deep oceans. Investors seeking long-term growth potential may find this ETF an effective vehicle to gain exposure to a diversified portfolio of firms dedicated to expanding human knowledge and presence in these challenging environments.

ROKT (State Street SPDR S&P Kensho Final Frontiers ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $40.8M, a beta of 1.37 versus the broader market, a 52-week range of 64.4-137.63, average daily share volume of 53K, a public-listing history dating back to 2018. These structural characteristics shape how ROKT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.37 indicates ROKT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ROKT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on ROKT?

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 ROKT snapshot

As of June 30, 2026, spot at $117.60, ATM IV 33.80%, IV rank 3.77%, expected move 9.69%. The butterfly on ROKT 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 ROKT specifically: ROKT IV at 33.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a ROKT butterfly, with a market-implied 1-standard-deviation move of approximately 9.69% (roughly $11.40 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 ROKT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROKT should anchor to the underlying notional of $117.60 per share and to the trader's directional view on ROKT etf.

ROKT butterfly setup

The ROKT 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 ROKT near $117.60, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROKT 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 ROKT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$110.00	$9.40
Sell 2	Call	$120.00	$2.65
Buy 1	Call	$125.00	$1.35

ROKT butterfly risk and reward

Net Premium / Debit: -$545.00
Max Profit (per contract): $399.04
Max Loss (per contract): -$545.00
Breakeven(s): $115.45, $124.69
Risk / Reward Ratio: 0.732

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.

ROKT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on ROKT. 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%	-$545.00
$26.01	-77.9%	-$545.00
$52.01	-55.8%	-$545.00
$78.01	-33.7%	-$545.00
$104.01	-11.6%	-$545.00
$130.01	+10.6%	-$45.00
$156.02	+32.7%	-$45.00
$182.02	+54.8%	-$45.00
$208.02	+76.9%	-$45.00
$234.02	+99.0%	-$45.00

When traders use butterfly on ROKT

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

ROKT thesis for this butterfly

The market-implied 1-standard-deviation range for ROKT extends from approximately $106.20 on the downside to $129.00 on the upside. A ROKT long call butterfly is a pinning play: it pays maximum at the middle strike if ROKT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ROKT IV rank near 3.77% 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 ROKT at 33.80%. As a Financial Services name, ROKT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROKT-specific events.

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

Frequently asked questions

What is a butterfly on ROKT?: A butterfly on ROKT is the butterfly strategy applied to ROKT (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 ROKT etf trading near $117.60, the strikes shown on this page are snapped to the nearest listed ROKT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ROKT 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 ROKT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $399.04 per contract and the computed maximum loss is -$545.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ROKT butterfly?: The breakeven for the ROKT butterfly priced on this page is roughly $115.45 and $124.69 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 ROKT market-implied 1-standard-deviation expected move is approximately 9.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on ROKT?: Butterflies on ROKT are pinning bets - traders use them when they expect ROKT 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 ROKT implied volatility affect this butterfly?: ROKT ATM IV is at 33.80% with IV rank near 3.77%, 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.