How are SLVR 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 SLVR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.00%), the computed maximum profit is $279.35 per contract and the computed maximum loss is -$112.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SLVR butterfly?

The breakeven for the SLVR butterfly priced on this page is roughly $59.08 and $64.88 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 SLVR market-implied 1-standard-deviation expected move is approximately 16.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SLVR implied volatility affect this butterfly?

SLVR ATM IV is at 57.00% with IV rank near 38.30%, 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.

SLVR Butterfly Strategy

SLVR (Sprott Silver Miners & Physical Silver ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

SILVERspac Inc. does not have significant operations. The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to concentrate on identifying businesses that provide technology and innovation solutions to the real estate and financial services industries, as well as concentrate on identifying enterprise technology companies that sell into the real estate and financial services sectors. The company was incorporated in 2021 and is based in New York, New York.

SLVR (Sprott Silver Miners & Physical Silver ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $336.4M, a trailing P/E of 23.06, a beta of 0.78 versus the broader market, a 52-week range of 23.15-85.9, average daily share volume of 318K, a public-listing history dating back to 2025. These structural characteristics shape how SLVR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.78 places SLVR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SLVR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SLVR?

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 SLVR snapshot

As of May 15, 2026, spot at $62.39, ATM IV 57.00%, IV rank 38.30%, expected move 16.34%. The butterfly on SLVR 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 SLVR specifically: SLVR IV at 57.00% 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 16.34% (roughly $10.20 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 SLVR expiries trade a higher absolute premium for lower per-day decay. Position sizing on SLVR should anchor to the underlying notional of $62.39 per share and to the trader's directional view on SLVR etf.

SLVR butterfly setup

The SLVR 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 SLVR near $62.39, the first option leg uses a $59.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SLVR 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 SLVR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$59.00	$6.25
Sell 2	Call	$62.00	$4.70
Buy 1	Call	$66.00	$3.28

SLVR butterfly risk and reward

Net Premium / Debit: -$12.50
Max Profit (per contract): $279.35
Max Loss (per contract): -$112.50
Breakeven(s): $59.08, $64.88
Risk / Reward Ratio: 2.483

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.

SLVR butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SLVR. 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%	-$12.50
$13.80	-77.9%	-$12.50
$27.60	-55.8%	-$12.50
$41.39	-33.7%	-$12.50
$55.18	-11.5%	-$12.50
$68.98	+10.6%	-$112.50
$82.77	+32.7%	-$112.50
$96.57	+54.8%	-$112.50
$110.36	+76.9%	-$112.50
$124.15	+99.0%	-$112.50

When traders use butterfly on SLVR

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

SLVR thesis for this butterfly

The market-implied 1-standard-deviation range for SLVR extends from approximately $52.19 on the downside to $72.59 on the upside. A SLVR long call butterfly is a pinning play: it pays maximum at the middle strike if SLVR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SLVR IV rank near 38.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SLVR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SLVR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SLVR-specific events.

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

Frequently asked questions

What is a butterfly on SLVR?: A butterfly on SLVR is the butterfly strategy applied to SLVR (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 SLVR etf trading near $62.39, the strikes shown on this page are snapped to the nearest listed SLVR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SLVR 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 SLVR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.00%), the computed maximum profit is $279.35 per contract and the computed maximum loss is -$112.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SLVR butterfly?: The breakeven for the SLVR butterfly priced on this page is roughly $59.08 and $64.88 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 SLVR market-implied 1-standard-deviation expected move is approximately 16.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SLVR?: Butterflies on SLVR are pinning bets - traders use them when they expect SLVR 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 SLVR implied volatility affect this butterfly?: SLVR ATM IV is at 57.00% with IV rank near 38.30%, 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.