How are SGDJ 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 SGDJ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.60%), the computed maximum profit is $272.34 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SGDJ butterfly?

The breakeven for the SGDJ butterfly priced on this page is roughly $72.95 and $79.05 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 SGDJ market-implied 1-standard-deviation expected move is approximately 13.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SGDJ implied volatility affect this butterfly?

SGDJ ATM IV is at 47.60% with IV rank near 46.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

SGDJ Butterfly Strategy

SGDJ (Sprott Junior Gold Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Sprott Funds Trust - Sprott Junior Gold Miners ETF is an exchange traded fund launched and managed by Sprott Asset Management USA Inc. The fund is co-managed by ALPS Advisors, Inc. The fund invests in public equity markets of global developed region. It invests in stocks of companies operating across materials, metals and mining, gold sectors. It invests in growth and value stocks of companies across diversified market capitalization. It seeks to benchmark performance of its portfolio against the Solactive Junior Gold Miners Custom Factors Total Return Index,MSCI All Country World Index and the S&P 500 Total Return Index.

SGDJ (Sprott Junior Gold Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $326.7M, a beta of 0.92 versus the broader market, a 52-week range of 47.39-115.775, average daily share volume of 71K, a public-listing history dating back to 2015. These structural characteristics shape how SGDJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.92 places SGDJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SGDJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SGDJ?

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 SGDJ snapshot

As of June 30, 2026, spot at $75.94, ATM IV 47.60%, IV rank 46.60%, expected move 13.65%. The butterfly on SGDJ 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 SGDJ specifically: SGDJ IV at 47.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 13.65% (roughly $10.36 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 SGDJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGDJ should anchor to the underlying notional of $75.94 per share and to the trader's directional view on SGDJ etf.

SGDJ butterfly setup

The SGDJ 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 SGDJ near $75.94, the first option leg uses a $72.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGDJ 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 SGDJ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$72.00	$5.30
Sell 2	Call	$76.00	$2.90
Buy 1	Call	$80.00	$1.45

SGDJ butterfly risk and reward

Net Premium / Debit: -$95.00
Max Profit (per contract): $272.34
Max Loss (per contract): -$95.00
Breakeven(s): $72.95, $79.05
Risk / Reward Ratio: 2.867

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.

SGDJ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SGDJ. 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%	-$95.00
$16.80	-77.9%	-$95.00
$33.59	-55.8%	-$95.00
$50.38	-33.7%	-$95.00
$67.17	-11.6%	-$95.00
$83.96	+10.6%	-$95.00
$100.75	+32.7%	-$95.00
$117.54	+54.8%	-$95.00
$134.33	+76.9%	-$95.00
$151.12	+99.0%	-$95.00

When traders use butterfly on SGDJ

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

SGDJ thesis for this butterfly

The market-implied 1-standard-deviation range for SGDJ extends from approximately $65.58 on the downside to $86.30 on the upside. A SGDJ long call butterfly is a pinning play: it pays maximum at the middle strike if SGDJ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SGDJ IV rank near 46.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SGDJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SGDJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGDJ-specific events.

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

Frequently asked questions

What is a butterfly on SGDJ?: A butterfly on SGDJ is the butterfly strategy applied to SGDJ (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 SGDJ etf trading near $75.94, the strikes shown on this page are snapped to the nearest listed SGDJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SGDJ 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 SGDJ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 47.60%), the computed maximum profit is $272.34 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SGDJ butterfly?: The breakeven for the SGDJ butterfly priced on this page is roughly $72.95 and $79.05 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 SGDJ market-implied 1-standard-deviation expected move is approximately 13.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SGDJ?: Butterflies on SGDJ are pinning bets - traders use them when they expect SGDJ 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 SGDJ implied volatility affect this butterfly?: SGDJ ATM IV is at 47.60% with IV rank near 46.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.