How are TMH 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 TMH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.50%), the computed maximum profit is $219.84 per contract and the computed maximum loss is -$61.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TMH butterfly?

The breakeven for the TMH butterfly priced on this page is roughly $49.62 and $54.39 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 TMH market-implied 1-standard-deviation expected move is approximately 8.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TMH implied volatility affect this butterfly?

TMH ATM IV is at 30.50% with IV rank near 33.27%, 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.

TMH Butterfly Strategy

TMH (Toyota Motor Corporation ADRhedged), in the Consumer Cyclical sector, (Auto - Parts industry), listed on AMEX.

The Series, under normal circumstances, invests at least 95% of its net assets in American Depositary Receipts (“ADRs”) of the Toyota Motor Corporation (the “Company”). It invests in the ADRs of the company and a currency swap (the “Currency Hedge Contract”) designed to hedge against fluctuations in the exchange rate between the U.S. dollar and the Japanese Yen (“Local Currency”). The fund is non-diversified.

TMH (Toyota Motor Corporation ADRhedged) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $3.75B, a trailing P/E of 44.31, a beta of -0.15 versus the broader market, a 52-week range of 45.5-65.814, average daily share volume of 1K, a public-listing history dating back to 2025. These structural characteristics shape how TMH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.15 indicates TMH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 44.31 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TMH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TMH?

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 TMH snapshot

As of May 15, 2026, spot at $52.07, ATM IV 30.50%, IV rank 33.27%, expected move 8.74%. The butterfly on TMH 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 TMH specifically: TMH IV at 30.50% 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 8.74% (roughly $4.55 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 TMH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMH should anchor to the underlying notional of $52.07 per share and to the trader's directional view on TMH etf.

TMH butterfly setup

The TMH 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 TMH near $52.07, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMH 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 TMH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$49.00	$3.93
Sell 2	Call	$52.00	$2.15
Buy 1	Call	$55.00	$0.99

TMH butterfly risk and reward

Net Premium / Debit: -$61.50
Max Profit (per contract): $219.84
Max Loss (per contract): -$61.50
Breakeven(s): $49.62, $54.39
Risk / Reward Ratio: 3.575

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.

TMH butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TMH. 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%	-$61.50
$11.52	-77.9%	-$61.50
$23.03	-55.8%	-$61.50
$34.55	-33.7%	-$61.50
$46.06	-11.5%	-$61.50
$57.57	+10.6%	-$61.50
$69.08	+32.7%	-$61.50
$80.59	+54.8%	-$61.50
$92.10	+76.9%	-$61.50
$103.62	+99.0%	-$61.50

When traders use butterfly on TMH

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

TMH thesis for this butterfly

The market-implied 1-standard-deviation range for TMH extends from approximately $47.52 on the downside to $56.62 on the upside. A TMH long call butterfly is a pinning play: it pays maximum at the middle strike if TMH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TMH IV rank near 33.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TMH should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, TMH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMH-specific events.

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

Frequently asked questions

What is a butterfly on TMH?: A butterfly on TMH is the butterfly strategy applied to TMH (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 TMH etf trading near $52.07, the strikes shown on this page are snapped to the nearest listed TMH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TMH 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 TMH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 30.50%), the computed maximum profit is $219.84 per contract and the computed maximum loss is -$61.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TMH butterfly?: The breakeven for the TMH butterfly priced on this page is roughly $49.62 and $54.39 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 TMH market-implied 1-standard-deviation expected move is approximately 8.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TMH?: Butterflies on TMH are pinning bets - traders use them when they expect TMH 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 TMH implied volatility affect this butterfly?: TMH ATM IV is at 30.50% with IV rank near 33.27%, 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.