How are SOXQ 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 SOXQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.80%), the computed maximum profit is $632.85 per contract and the computed maximum loss is -$335.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOXQ butterfly?

The breakeven for the SOXQ butterfly priced on this page is roughly $116.65 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 SOXQ market-implied 1-standard-deviation expected move is approximately 16.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SOXQ implied volatility affect this butterfly?

SOXQ ATM IV is at 55.80% with IV rank near 76.95%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

SOXQ Butterfly Strategy

SOXQ (Invesco PHLX Semiconductor ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Invesco PHLX Semiconductor ETF endeavors to replicate the performance of the PHLX Semiconductor Sector Index. This Fund typically allocates at least 90% of its total capital to the equities that constitute this underlying benchmark. The Index itself is designed to gauge the performance of the thirty largest U.S.-listed enterprises operating in the semiconductor sector. These essential components, including items like memory chips, microprocessors, and integrated circuits, as well as associated equipment, power a broad spectrum of electronic devices, from everyday household products and vehicles to computers. The Index's constituents span companies involved in the design, production, distribution, and sale of semiconductors. Both the ETF and its benchmark undergo an annual re-evaluation and adjustment each September, alongside quarterly rebalancing activities conducted in March, June, September, and December.

SOXQ (Invesco PHLX Semiconductor ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.05B, a beta of 2.19 versus the broader market, a 52-week range of 42.67-115.335, average daily share volume of 2.4M, a public-listing history dating back to 2021. These structural characteristics shape how SOXQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.19 indicates SOXQ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SOXQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SOXQ?

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 SOXQ snapshot

As of June 30, 2026, spot at $112.50, ATM IV 55.80%, IV rank 76.95%, expected move 16.00%. The butterfly on SOXQ 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 SOXQ specifically: SOXQ IV at 55.80% is rich versus its 1-year range, which makes a premium-buying SOXQ butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 16.00% (roughly $18.00 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 SOXQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOXQ should anchor to the underlying notional of $112.50 per share and to the trader's directional view on SOXQ etf.

SOXQ butterfly setup

The SOXQ 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 SOXQ near $112.50, 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 SOXQ 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 SOXQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$9.95
Sell 2	Call	$110.00	$6.85
Buy 1	Call	$120.00	$2.10

SOXQ butterfly risk and reward

Net Premium / Debit: +$165.00
Max Profit (per contract): $632.85
Max Loss (per contract): -$335.00
Breakeven(s): $116.65
Risk / Reward Ratio: 1.889

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.

SOXQ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SOXQ. 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%	+$165.00
$24.88	-77.9%	+$165.00
$49.76	-55.8%	+$165.00
$74.63	-33.7%	+$165.00
$99.50	-11.6%	+$165.00
$124.38	+10.6%	-$335.00
$149.25	+32.7%	-$335.00
$174.12	+54.8%	-$335.00
$199.00	+76.9%	-$335.00
$223.87	+99.0%	-$335.00

When traders use butterfly on SOXQ

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

SOXQ thesis for this butterfly

The market-implied 1-standard-deviation range for SOXQ extends from approximately $94.50 on the downside to $130.50 on the upside. A SOXQ long call butterfly is a pinning play: it pays maximum at the middle strike if SOXQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SOXQ IV rank near 76.95% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SOXQ at 55.80%. As a Financial Services name, SOXQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOXQ-specific events.

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

Frequently asked questions

What is a butterfly on SOXQ?: A butterfly on SOXQ is the butterfly strategy applied to SOXQ (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 SOXQ etf trading near $112.50, the strikes shown on this page are snapped to the nearest listed SOXQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SOXQ 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 SOXQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 55.80%), the computed maximum profit is $632.85 per contract and the computed maximum loss is -$335.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SOXQ butterfly?: The breakeven for the SOXQ butterfly priced on this page is roughly $116.65 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 SOXQ market-implied 1-standard-deviation expected move is approximately 16.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SOXQ?: Butterflies on SOXQ are pinning bets - traders use them when they expect SOXQ 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 SOXQ implied volatility affect this butterfly?: SOXQ ATM IV is at 55.80% with IV rank near 76.95%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.