How are USG 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 USG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 45.00%), the computed maximum profit is $178.44 per contract and the computed maximum loss is -$9.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a USG butterfly?

The breakeven for the USG butterfly priced on this page is roughly $30.02 and $33.94 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 USG market-implied 1-standard-deviation expected move is approximately 12.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current USG implied volatility affect this butterfly?

USG ATM IV is at 45.00% with IV rank near 38.84%, 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.

USG Butterfly Strategy

USG (USCF Gold Strategy Plus Income Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund's advisor aims to achieve its investment goal by gaining significant financial exposure to the performance of both physical gold and gold futures markets, known as the 'Gold Markets'. All investments are exclusively made in COMEX Gold Warrants and gold futures contracts, facilitated through its subsidiary. The fund operates with a concentrated, non-diversified portfolio.

USG (USCF Gold Strategy Plus Income Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.0M, a beta of 0.01 versus the broader market, a 52-week range of 31.49-44.178, average daily share volume of 5K, a public-listing history dating back to 2021. These structural characteristics shape how USG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.01 indicates USG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. USG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on USG?

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 USG snapshot

As of June 29, 2026, spot at $31.96, ATM IV 45.00%, IV rank 38.84%, expected move 12.90%. The butterfly on USG 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 USG specifically: USG IV at 45.00% 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 12.90% (roughly $4.12 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 USG expiries trade a higher absolute premium for lower per-day decay. Position sizing on USG should anchor to the underlying notional of $31.96 per share and to the trader's directional view on USG etf.

USG butterfly setup

The USG 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 USG near $31.96, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed USG 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 USG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$30.00	$2.10
Sell 2	Call	$32.00	$1.28
Buy 1	Call	$34.00	$0.55

USG butterfly risk and reward

Net Premium / Debit: -$9.00
Max Profit (per contract): $178.44
Max Loss (per contract): -$9.00
Breakeven(s): $30.02, $33.94
Risk / Reward Ratio: 19.827

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.

USG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on USG. 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%	-$9.00
$7.08	-77.9%	-$9.00
$14.14	-55.8%	-$9.00
$21.21	-33.6%	-$9.00
$28.27	-11.5%	-$9.00
$35.34	+10.6%	-$9.00
$42.40	+32.7%	-$9.00
$49.47	+54.8%	-$9.00
$56.53	+76.9%	-$9.00
$63.60	+99.0%	-$9.00

When traders use butterfly on USG

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

USG thesis for this butterfly

The market-implied 1-standard-deviation range for USG extends from approximately $27.84 on the downside to $36.08 on the upside. A USG long call butterfly is a pinning play: it pays maximum at the middle strike if USG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current USG IV rank near 38.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on USG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, USG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USG-specific events.

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

Frequently asked questions

What is a butterfly on USG?: A butterfly on USG is the butterfly strategy applied to USG (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 USG etf trading near $31.96, the strikes shown on this page are snapped to the nearest listed USG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are USG 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 USG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 45.00%), the computed maximum profit is $178.44 per contract and the computed maximum loss is -$9.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a USG butterfly?: The breakeven for the USG butterfly priced on this page is roughly $30.02 and $33.94 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 USG market-implied 1-standard-deviation expected move is approximately 12.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on USG?: Butterflies on USG are pinning bets - traders use them when they expect USG 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 USG implied volatility affect this butterfly?: USG ATM IV is at 45.00% with IV rank near 38.84%, 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.