How are RZV 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 RZV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $229.10 per contract and the computed maximum loss is -$402.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RZV butterfly?

The breakeven for the RZV butterfly priced on this page is roughly $146.03 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 RZV market-implied 1-standard-deviation expected move is approximately 5.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RZV implied volatility affect this butterfly?

RZV ATM IV is at 19.20% with IV rank near 0.23%, 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.

RZV Butterfly Strategy

RZV (Invesco S&P SmallCap 600 Pure Value ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco S&P SmallCap 600 Pure Value ETF is designed to mirror the performance of the S&P SmallCap 600 Pure Value Index. This fund allocates a minimum of 90% of its total assets to the securities comprising its benchmark index. The index itself tracks the financial performance of small-capitalization companies, drawn from the broader S&P SmallCap 600 Index, that exhibit pronounced value characteristics. These value traits are identified through key financial ratios, specifically book value-to-price, earnings-to-price, and sales-to-price. Both the fund's portfolio and the underlying index undergo adjustments annually.

RZV (Invesco S&P SmallCap 600 Pure Value ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $267.7M, a beta of 1.24 versus the broader market, a 52-week range of 103.54-149.43, average daily share volume of 5K, a public-listing history dating back to 2006. These structural characteristics shape how RZV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.24 places RZV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RZV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RZV?

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 RZV snapshot

As of June 30, 2026, spot at $149.06, ATM IV 19.20%, IV rank 0.23%, expected move 5.50%. The butterfly on RZV 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 RZV specifically: RZV IV at 19.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a RZV butterfly, with a market-implied 1-standard-deviation move of approximately 5.50% (roughly $8.20 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 RZV expiries trade a higher absolute premium for lower per-day decay. Position sizing on RZV should anchor to the underlying notional of $149.06 per share and to the trader's directional view on RZV etf.

RZV butterfly setup

The RZV 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 RZV near $149.06, the first option leg uses a $142.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RZV 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 RZV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$142.00	$8.00
Sell 2	Call	$149.00	$2.70
Buy 1	Call	$151.00	$1.43

RZV butterfly risk and reward

Net Premium / Debit: -$402.50
Max Profit (per contract): $229.10
Max Loss (per contract): -$402.50
Breakeven(s): $146.03
Risk / Reward Ratio: 0.569

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.

RZV butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RZV. 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%	-$402.50
$32.97	-77.9%	-$402.50
$65.92	-55.8%	-$402.50
$98.88	-33.7%	-$402.50
$131.84	-11.6%	-$402.50
$164.79	+10.6%	+$97.50
$197.75	+32.7%	+$97.50
$230.71	+54.8%	+$97.50
$263.67	+76.9%	+$97.50
$296.62	+99.0%	+$97.50

When traders use butterfly on RZV

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

RZV thesis for this butterfly

The market-implied 1-standard-deviation range for RZV extends from approximately $140.86 on the downside to $157.26 on the upside. A RZV long call butterfly is a pinning play: it pays maximum at the middle strike if RZV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RZV IV rank near 0.23% 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 RZV at 19.20%. As a Financial Services name, RZV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RZV-specific events.

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

Frequently asked questions

What is a butterfly on RZV?: A butterfly on RZV is the butterfly strategy applied to RZV (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 RZV etf trading near $149.06, the strikes shown on this page are snapped to the nearest listed RZV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RZV 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 RZV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $229.10 per contract and the computed maximum loss is -$402.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RZV butterfly?: The breakeven for the RZV butterfly priced on this page is roughly $146.03 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 RZV market-implied 1-standard-deviation expected move is approximately 5.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RZV?: Butterflies on RZV are pinning bets - traders use them when they expect RZV 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 RZV implied volatility affect this butterfly?: RZV ATM IV is at 19.20% with IV rank near 0.23%, 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.