How are SPHB 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 SPHB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.50%), the computed maximum profit is $471.80 per contract and the computed maximum loss is -$475.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SPHB butterfly?

The breakeven for the SPHB butterfly priced on this page is roughly $134.75 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 SPHB market-implied 1-standard-deviation expected move is approximately 7.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SPHB implied volatility affect this butterfly?

SPHB ATM IV is at 26.50% with IV rank near 49.81%, 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.

SPHB Butterfly Strategy

SPHB (Invesco S&P 500 High Beta ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco S&P 500 High Beta ETF (Fund) is based on the S&P 500 High Beta Index (Index). The Fund will invest at least 90% of its total assets in the securities that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poor's and consists of the 100 stocks from the S&P 500 Index with the highest sensitivity to market movements, or beta, over the past 12 months. Beta is a measure of relative risk and is the rate of change of a security's price. The Fund and the Index are rebalanced and reconstituted quarterly in February, May, August and November. As of 08/31/2025 the Fund had an overall rating of 4 stars out of 381 funds and was rated 4 stars out of 381 funds, 5 stars out of 355 funds and 4 stars out of 256 funds for the 3-, 5- and 10- year periods, respectively.

SPHB (Invesco S&P 500 High Beta ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $941.8M, a beta of 1.57 versus the broader market, a 52-week range of 85.44-142.59, average daily share volume of 407K, a public-listing history dating back to 2011. These structural characteristics shape how SPHB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.57 indicates SPHB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SPHB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SPHB?

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 SPHB snapshot

As of May 15, 2026, spot at $138.44, ATM IV 26.50%, IV rank 49.81%, expected move 7.60%. The butterfly on SPHB 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 SPHB specifically: SPHB IV at 26.50% 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 7.60% (roughly $10.52 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 SPHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPHB should anchor to the underlying notional of $138.44 per share and to the trader's directional view on SPHB etf.

SPHB butterfly setup

The SPHB 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 SPHB near $138.44, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPHB 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 SPHB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$10.95
Sell 2	Call	$140.00	$4.00
Buy 1	Call	$145.00	$1.80

SPHB butterfly risk and reward

Net Premium / Debit: -$475.00
Max Profit (per contract): $471.80
Max Loss (per contract): -$475.00
Breakeven(s): $134.75
Risk / Reward Ratio: 0.993

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.

SPHB butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SPHB. 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%	-$475.00
$30.62	-77.9%	-$475.00
$61.23	-55.8%	-$475.00
$91.84	-33.7%	-$475.00
$122.44	-11.6%	-$475.00
$153.05	+10.6%	+$25.00
$183.66	+32.7%	+$25.00
$214.27	+54.8%	+$25.00
$244.88	+76.9%	+$25.00
$275.49	+99.0%	+$25.00

When traders use butterfly on SPHB

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

SPHB thesis for this butterfly

The market-implied 1-standard-deviation range for SPHB extends from approximately $127.92 on the downside to $148.96 on the upside. A SPHB long call butterfly is a pinning play: it pays maximum at the middle strike if SPHB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SPHB IV rank near 49.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on SPHB should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SPHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPHB-specific events.

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

Frequently asked questions

What is a butterfly on SPHB?: A butterfly on SPHB is the butterfly strategy applied to SPHB (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 SPHB etf trading near $138.44, the strikes shown on this page are snapped to the nearest listed SPHB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SPHB 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 SPHB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.50%), the computed maximum profit is $471.80 per contract and the computed maximum loss is -$475.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SPHB butterfly?: The breakeven for the SPHB butterfly priced on this page is roughly $134.75 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 SPHB market-implied 1-standard-deviation expected move is approximately 7.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SPHB?: Butterflies on SPHB are pinning bets - traders use them when they expect SPHB 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 SPHB implied volatility affect this butterfly?: SPHB ATM IV is at 26.50% with IV rank near 49.81%, 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.