SCJ Butterfly Strategy
SCJ (iShares MSCI Japan Small-Cap ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The iShares MSCI Japan Small-Cap ETF (SCJ) is designed to replicate the investment performance of a specific market benchmark. This index exclusively comprises shares of smaller Japanese companies.
SCJ (iShares MSCI Japan Small-Cap ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $198.5M, a beta of 0.83 versus the broader market, a 52-week range of 88.08-110.85, average daily share volume of 48K, a public-listing history dating back to 2007. These structural characteristics shape how SCJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places SCJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SCJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SCJ?
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.
SCJ snapshot
As of August 14, 2026, spot at $112.14, ATM IV 22.20%, IV rank 18.19%, expected move 6.36%. The butterfly on SCJ below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on SCJ specifically: SCJ IV at 22.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SCJ butterfly, with a market-implied 1-standard-deviation move of approximately 6.36% (roughly $7.14 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SCJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCJ should anchor to the underlying notional of $112.14 per share and to the trader's directional view on SCJ etf.
SCJ butterfly setup
The SCJ butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SCJ at $112.14 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCJ chain at a 35-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 SCJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $105.00 | $6.55 |
| Sell 2 | Call | $110.00 | $3.40 |
| Buy 1 | Call | $120.00 | $0.76 |
SCJ butterfly risk and reward
- Net Premium / Debit
- -$51.00
- Max Profit (per contract)
- $403.55
- Max Loss (per contract)
- -$551.00
- Breakeven(s)
- $105.43, $114.49
- 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.
SCJ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SCJ. 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% | -$51.00 |
| $24.80 | -77.9% | -$51.00 |
| $49.60 | -55.8% | -$51.00 |
| $74.39 | -33.7% | -$51.00 |
| $99.18 | -11.6% | -$51.00 |
| $123.98 | +10.6% | -$551.00 |
| $148.77 | +32.7% | -$551.00 |
| $173.57 | +54.8% | -$551.00 |
| $198.36 | +76.9% | -$551.00 |
| $223.15 | +99.0% | -$551.00 |
When traders use butterfly on SCJ
Butterflies on SCJ are pinning bets - traders use them when they expect SCJ 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.
SCJ thesis for this butterfly
The market-implied 1-standard-deviation range for SCJ extends from approximately $105.00 on the downside to $119.28 on the upside. A SCJ long call butterfly is a pinning play: it pays maximum at the middle strike if SCJ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SCJ IV rank near 18.19% 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 SCJ at 22.20%. As a Financial Services name, SCJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCJ-specific events.
SCJ 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. SCJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCJ alongside the broader basket even when SCJ-specific fundamentals are unchanged. Always rebuild the position from current SCJ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SCJ?
- A butterfly on SCJ is the butterfly strategy applied to SCJ (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 SCJ etf at $112.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SCJ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SCJ 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 SCJ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.20%), the computed maximum profit is $403.55 per contract and the computed maximum loss is -$551.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SCJ butterfly?
- The breakeven for the SCJ butterfly priced on this page is roughly $105.43 and $114.49 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SCJ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SCJ?
- Butterflies on SCJ are pinning bets - traders use them when they expect SCJ 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 SCJ implied volatility affect this butterfly?
- SCJ ATM IV is at 22.20% with IV rank near 18.19%, 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.