How are SPHQ 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 SPHQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 15.70%), the computed maximum profit is $200.90 per contract and the computed maximum loss is -$279.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SPHQ butterfly?

The breakeven for the SPHQ butterfly priced on this page is roughly $86.79 and $91.21 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 SPHQ market-implied 1-standard-deviation expected move is approximately 4.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SPHQ implied volatility affect this butterfly?

SPHQ ATM IV is at 15.70% with IV rank near 17.56%, 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.

SPHQ Butterfly Strategy

SPHQ (Invesco S&P 500 Quality ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco S&P 500 Quality ETF (referred to as the Fund) is designed to replicate the investment performance of the S&P 500 Quality Index. The Fund typically allocates at least 90% of its total assets to the common stocks that constitute this Index. The underlying Index is composed of S&P 500 stocks identified by their top "quality score," which is systematically calculated based on three fundamental financial indicators: return on equity, accruals ratio, and financial leverage ratio. Both the Fund and its benchmark Index are rebalanced and reconstituted twice a year, specifically on the third Friday of June and December. As of August 31, 2025, the Fund has achieved strong Morningstar ratings. It received an impressive overall rating of 5 stars, placing it among 1,252 funds.

SPHQ (Invesco S&P 500 Quality ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $18.85B, a beta of 0.84 versus the broader market, a 52-week range of 70.26-90.26, average daily share volume of 1.6M, a public-listing history dating back to 2005. These structural characteristics shape how SPHQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.84 places SPHQ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SPHQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on SPHQ?

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 SPHQ snapshot

As of June 29, 2026, spot at $88.75, ATM IV 15.70%, IV rank 17.56%, expected move 4.50%. The butterfly on SPHQ 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 18-day expiry.

Why this butterfly structure on SPHQ specifically: SPHQ IV at 15.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a SPHQ butterfly, with a market-implied 1-standard-deviation move of approximately 4.50% (roughly $3.99 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPHQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPHQ should anchor to the underlying notional of $88.75 per share and to the trader's directional view on SPHQ etf.

SPHQ butterfly setup

The SPHQ 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 SPHQ near $88.75, the first option leg uses a $84.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPHQ chain at a 18-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 SPHQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$84.00	$4.95
Sell 2	Call	$89.00	$1.15
Buy 1	Call	$93.00	$0.14

SPHQ butterfly risk and reward

Net Premium / Debit: -$279.00
Max Profit (per contract): $200.90
Max Loss (per contract): -$279.00
Breakeven(s): $86.79, $91.21
Risk / Reward Ratio: 0.720

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.

SPHQ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SPHQ. 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%	-$279.00
$19.63	-77.9%	-$279.00
$39.25	-55.8%	-$279.00
$58.88	-33.7%	-$279.00
$78.50	-11.6%	-$279.00
$98.12	+10.6%	-$179.00
$117.74	+32.7%	-$179.00
$137.36	+54.8%	-$179.00
$156.99	+76.9%	-$179.00
$176.61	+99.0%	-$179.00

When traders use butterfly on SPHQ

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

SPHQ thesis for this butterfly

The market-implied 1-standard-deviation range for SPHQ extends from approximately $84.76 on the downside to $92.74 on the upside. A SPHQ long call butterfly is a pinning play: it pays maximum at the middle strike if SPHQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SPHQ IV rank near 17.56% 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 SPHQ at 15.70%. As a Financial Services name, SPHQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPHQ-specific events.

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

Frequently asked questions

What is a butterfly on SPHQ?: A butterfly on SPHQ is the butterfly strategy applied to SPHQ (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 SPHQ etf trading near $88.75, the strikes shown on this page are snapped to the nearest listed SPHQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SPHQ 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 SPHQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 15.70%), the computed maximum profit is $200.90 per contract and the computed maximum loss is -$279.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SPHQ butterfly?: The breakeven for the SPHQ butterfly priced on this page is roughly $86.79 and $91.21 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 SPHQ market-implied 1-standard-deviation expected move is approximately 4.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SPHQ?: Butterflies on SPHQ are pinning bets - traders use them when they expect SPHQ 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 SPHQ implied volatility affect this butterfly?: SPHQ ATM IV is at 15.70% with IV rank near 17.56%, 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.