How are UBEW 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 UBEW butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $170.44 per contract and the computed maximum loss is -$19.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UBEW butterfly?

The breakeven for the UBEW butterfly priced on this page is roughly $22.19 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UBEW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UBEW implied volatility affect this butterfly?

UBEW ATM IV is at 33.30% with IV rank near 22.52%, 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.

UBEW Butterfly Strategy

UBEW (Roundhill ETF Trust - Roundhill UBER WeeklyPay ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

UBEW aims to combine weekly income and modest enhanced exposure to the weekly price performance of UBER stock. The fund invests in total return swap agreements and UBER common stock that in aggregate will return approximately 120% of the calendar week return of UBER shares. Aside from providing 1.2x leveraged single-stock exposure, the fund will make weekly distribution payments to shareholders. It also invests in short-term US Treasurys and money market funds for collateral. Unlike traditional ETFs, UBEW introduces added volatility due to its lack of diversification and use of leverage. Investors should note that an investment in the fund is not an investment in the underlying stock.

UBEW (Roundhill ETF Trust - Roundhill UBER WeeklyPay ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.7M, a beta of 0.65 versus the broader market, a 52-week range of 22.94-54.44, average daily share volume of 5K, a public-listing history dating back to 2025. These structural characteristics shape how UBEW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates UBEW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. UBEW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on UBEW?

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.

UBEW snapshot

As of September 29, 2026, spot at $23.51, ATM IV 33.30%, IV rank 22.52%, expected move 9.55%. The butterfly on UBEW below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.

Why this butterfly structure on UBEW specifically: UBEW IV at 33.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a UBEW butterfly, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $2.24 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UBEW expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBEW should anchor to the underlying notional of $23.51 per share and to the trader's directional view on UBEW etf.

UBEW butterfly setup

The UBEW butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UBEW at $23.51 on that close, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBEW chain at a 80-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 UBEW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$22.00	$2.10
Sell 2	Call	$24.00	$1.57
Buy 1	Call	$25.00	$1.23

UBEW butterfly risk and reward

Net Premium / Debit: -$19.00
Max Profit (per contract): $170.44
Max Loss (per contract): -$19.00
Breakeven(s): $22.19
Risk / Reward Ratio: 8.971

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.

UBEW butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on UBEW. 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%	-$19.00
$5.21	-77.9%	-$19.00
$10.40	-55.7%	-$19.00
$15.60	-33.6%	-$19.00
$20.80	-11.5%	-$19.00
$26.00	+10.6%	+$81.00
$31.19	+32.7%	+$81.00
$36.39	+54.8%	+$81.00
$41.59	+76.9%	+$81.00
$46.78	+99.0%	+$81.00

When traders use butterfly on UBEW

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

UBEW thesis for this butterfly

The market-implied 1-standard-deviation range for UBEW extends from approximately $21.27 on the downside to $25.75 on the upside. A UBEW long call butterfly is a pinning play: it pays maximum at the middle strike if UBEW settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UBEW IV rank near 22.52% 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 UBEW at 33.30%. As a Financial Services name, UBEW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBEW-specific events.

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

Frequently asked questions

What is a butterfly on UBEW?: A butterfly on UBEW is the butterfly strategy applied to UBEW (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 UBEW etf at $23.51 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed UBEW chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UBEW 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 UBEW butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $170.44 per contract and the computed maximum loss is -$19.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UBEW butterfly?: The breakeven for the UBEW butterfly priced on this page is roughly $22.19 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UBEW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on UBEW?: Butterflies on UBEW are pinning bets - traders use them when they expect UBEW 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 UBEW implied volatility affect this butterfly?: UBEW ATM IV is at 33.30% with IV rank near 22.52%, 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.