SDCI Butterfly Strategy
SDCI (USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR). The SDCITR is a total return commodity sector index designed to broadly represent major commodities.
SDCI (USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $374.4M, a beta of 0.88 versus the broader market, a 52-week range of 20.4-29.362, average daily share volume of 176K, a public-listing history dating back to 2018. These structural characteristics shape how SDCI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places SDCI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SDCI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SDCI?
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 SDCI snapshot
As of May 15, 2026, spot at $28.86, ATM IV 42.50%, IV rank 23.39%, expected move 12.18%. The butterfly on SDCI 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 34-day expiry.
Why this butterfly structure on SDCI specifically: SDCI IV at 42.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a SDCI butterfly, with a market-implied 1-standard-deviation move of approximately 12.18% (roughly $3.52 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SDCI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SDCI should anchor to the underlying notional of $28.86 per share and to the trader's directional view on SDCI etf.
SDCI butterfly setup
The SDCI 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 SDCI near $28.86, the first option leg uses a $27.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SDCI chain at a 34-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 SDCI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $27.42 | N/A |
| Sell 2 | Call | $28.86 | N/A |
| Buy 1 | Call | $30.30 | N/A |
SDCI 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.
SDCI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SDCI. 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 SDCI
Butterflies on SDCI are pinning bets - traders use them when they expect SDCI 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.
SDCI thesis for this butterfly
The market-implied 1-standard-deviation range for SDCI extends from approximately $25.34 on the downside to $32.38 on the upside. A SDCI long call butterfly is a pinning play: it pays maximum at the middle strike if SDCI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SDCI IV rank near 23.39% 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 SDCI at 42.50%. As a Financial Services name, SDCI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SDCI-specific events.
SDCI 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. SDCI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SDCI alongside the broader basket even when SDCI-specific fundamentals are unchanged. Always rebuild the position from current SDCI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SDCI?
- A butterfly on SDCI is the butterfly strategy applied to SDCI (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 SDCI etf trading near $28.86, the strikes shown on this page are snapped to the nearest listed SDCI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SDCI 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 SDCI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 42.50%), 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 SDCI butterfly?
- The breakeven for the SDCI 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 SDCI market-implied 1-standard-deviation expected move is approximately 12.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SDCI?
- Butterflies on SDCI are pinning bets - traders use them when they expect SDCI 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 SDCI implied volatility affect this butterfly?
- SDCI ATM IV is at 42.50% with IV rank near 23.39%, 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.