How are SCYB 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 SCYB butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 132.70%), the computed maximum profit is $60.93 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SCYB butterfly?

The breakeven for the SCYB butterfly priced on this page is roughly $24.28 and $25.73 at expiration, derived from the September 29, 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 SCYB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 38.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SCYB implied volatility affect this butterfly?

Current SCYB ATM IV is 132.70%; IV rank context is unavailable in the current snapshot.

SCYB Butterfly Strategy

SCYB (Schwab High Yield Bond ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Schwab Strategic Trust - Schwab High Yield Bond ETF is an exchange traded fund launched and managed by Charles Schwab Investment Management, Inc. The fund invests in fixed income markets of the United States. It primarily invests in U.S. dollar denominated below investment grade corporate debt, currently in a coupon paying period, that have a below investment grade rating based on an average of Moody’s, S&P and Fitch and have at least 18 months to final maturity. The fund seeks to track the performance of the ICE BofA US Cash Pay High Yield Constrained Index, by using representative sampling technique. Schwab Strategic Trust - Schwab High Yield Bond ETF was formed on July 11, 2023 and is domiciled in the United States.

SCYB (Schwab High Yield Bond ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.68B, a beta of 0.27 versus the broader market, a 52-week range of 25.21-26.72, average daily share volume of 1.1M, a public-listing history dating back to 2023, approximately 28 full-time employees. These structural characteristics shape how SCYB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.27 indicates SCYB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SCYB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SCYB?

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.

SCYB snapshot

As of September 29, 2026, spot at $25.26, ATM IV 132.70%, expected move 38.04%. The butterfly on SCYB below is built from the September 29, 2026 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 SCYB specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SCYB is inferred from ATM IV at 132.70% alone, with a market-implied 1-standard-deviation move of approximately 38.04% (roughly $9.61 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 SCYB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCYB should anchor to the underlying notional of $25.26 per share and to the trader's directional view on SCYB etf.

SCYB butterfly setup

The SCYB butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SCYB at $25.26 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCYB 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 SCYB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$24.00	$1.38
Sell 2	Call	$25.00	$0.56
Buy 1	Call	$27.00	$0.02

SCYB butterfly risk and reward

Net Premium / Debit: -$27.50
Max Profit (per contract): $60.93
Max Loss (per contract): -$127.50
Breakeven(s): $24.28, $25.73
Risk / Reward Ratio: 0.478

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.

SCYB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SCYB. 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%	-$27.50
$5.59	-77.9%	-$27.50
$11.18	-55.7%	-$27.50
$16.76	-33.6%	-$27.50
$22.35	-11.5%	-$27.50
$27.93	+10.6%	-$127.50
$33.51	+32.7%	-$127.50
$39.10	+54.8%	-$127.50
$44.68	+76.9%	-$127.50
$50.27	+99.0%	-$127.50

When traders use butterfly on SCYB

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

SCYB thesis for this butterfly

The market-implied 1-standard-deviation range for SCYB extends from approximately $15.65 on the downside to $34.87 on the upside. A SCYB long call butterfly is a pinning play: it pays maximum at the middle strike if SCYB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, SCYB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCYB-specific events.

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

Frequently asked questions

What is a butterfly on SCYB?: A butterfly on SCYB is the butterfly strategy applied to SCYB (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 SCYB etf at $25.26 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed SCYB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SCYB 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 SCYB butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 132.70%), the computed maximum profit is $60.93 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SCYB butterfly?: The breakeven for the SCYB butterfly priced on this page is roughly $24.28 and $25.73 at expiration, derived from the September 29, 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 SCYB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 38.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SCYB?: Butterflies on SCYB are pinning bets - traders use them when they expect SCYB 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 SCYB implied volatility affect this butterfly?: Current SCYB ATM IV is 132.70%; IV rank context is unavailable in the current snapshot.