SCC Butterfly Strategy
SCC (ProShares UltraShort Consumer Discretionary), in the Financial Services sector, (Asset Management industry), listed on AMEX.
SCC provides 2x daily inverse exposure to a market cap-weighted index representing the consumer discretionary sector of the S&P 500. The underlying index, which is an S&P Select Sector Index, includes automobiles & components, consumer durables and apparel, consumer services, and retailing. As a levered product with daily resets, SCC is designed as a short-term trading tool and not a long-term investment vehicle. Due to daily compounding, its unlikely to achieve its stated exposure and returns for longer than a one-day period. Prior to March 20, 2023, the fund traded as the Proshares UltraShort Consumer Services and tracked the Dow Jones U.S. Consumer Services Index.
SCC (ProShares UltraShort Consumer Discretionary) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.1M, a beta of -2.22 versus the broader market, a 52-week range of 13.12-18.3, average daily share volume of 21K, a public-listing history dating back to 2007. These structural characteristics shape how SCC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.22 indicates SCC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SCC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SCC?
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 SCC snapshot
As of June 30, 2026, spot at $14.48, ATM IV 96.70%, IV rank 26.19%, expected move 27.72%. The butterfly on SCC 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 SCC specifically: SCC IV at 96.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a SCC butterfly, with a market-implied 1-standard-deviation move of approximately 27.72% (roughly $4.01 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 SCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCC should anchor to the underlying notional of $14.48 per share and to the trader's directional view on SCC etf.
SCC butterfly setup
The SCC 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 SCC near $14.48, the first option leg uses a $13.76 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCC 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 SCC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.76 | N/A |
| Sell 2 | Call | $14.48 | N/A |
| Buy 1 | Call | $15.20 | N/A |
SCC butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
SCC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SCC. 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.
When traders use butterfly on SCC
Butterflies on SCC are pinning bets - traders use them when they expect SCC 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.
SCC thesis for this butterfly
The market-implied 1-standard-deviation range for SCC extends from approximately $10.47 on the downside to $18.49 on the upside. A SCC long call butterfly is a pinning play: it pays maximum at the middle strike if SCC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SCC IV rank near 26.19% 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 SCC at 96.70%. As a Financial Services name, SCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCC-specific events.
SCC 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. SCC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCC alongside the broader basket even when SCC-specific fundamentals are unchanged. Always rebuild the position from current SCC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SCC?
- A butterfly on SCC is the butterfly strategy applied to SCC (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 SCC etf trading near $14.48, the strikes shown on this page are snapped to the nearest listed SCC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SCC 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 SCC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 96.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SCC butterfly?
- The breakeven for the SCC butterfly priced on this page is no defined breakeven on the modeled curve 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 SCC market-implied 1-standard-deviation expected move is approximately 27.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SCC?
- Butterflies on SCC are pinning bets - traders use them when they expect SCC 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 SCC implied volatility affect this butterfly?
- SCC ATM IV is at 96.70% with IV rank near 26.19%, 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.