How are UTWY 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 UTWY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $154.99 per contract and the computed maximum loss is -$43.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UTWY butterfly?

The breakeven for the UTWY butterfly priced on this page is roughly $41.43 and $44.57 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 UTWY market-implied 1-standard-deviation expected move is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UTWY implied volatility affect this butterfly?

UTWY ATM IV is at 37.60% with IV rank near 37.97%, 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.

UTWY Butterfly Strategy

UTWY (US Treasury 20 Year Bond ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

UTWY is part of the first single-bond ETF suite. The targeted holding makes it very different from other ETFs holding a basket of 20-year Treasury notes. This is a tool used in portfolio management. The fund tracks an index that holds just the on-the-run 20-year US Treasury notes, which are the most recently issued and most liquid. At each monthly rebalancing, the underlying issue is sold and rolled into a newly selected issue, given that there has been a new public sale or auction by the US Government for 20-year Treasury notes. This roll transition occurs on one day, each month.

UTWY (US Treasury 20 Year Bond ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.5M, a beta of 1.93 versus the broader market, a 52-week range of 41.33-45.234, average daily share volume of 1K, a public-listing history dating back to 2023, approximately 390 full-time employees. These structural characteristics shape how UTWY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.93 indicates UTWY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UTWY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on UTWY?

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 UTWY snapshot

As of June 30, 2026, spot at $42.80, ATM IV 37.60%, IV rank 37.97%, expected move 10.78%. The butterfly on UTWY 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 17-day expiry.

Why this butterfly structure on UTWY specifically: UTWY IV at 37.60% 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 10.78% (roughly $4.61 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UTWY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UTWY should anchor to the underlying notional of $42.80 per share and to the trader's directional view on UTWY etf.

UTWY butterfly setup

The UTWY 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 UTWY near $42.80, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UTWY chain at a 17-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 UTWY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$41.00	$2.49
Sell 2	Call	$43.00	$1.33
Buy 1	Call	$45.00	$0.60

UTWY butterfly risk and reward

Net Premium / Debit: -$43.00
Max Profit (per contract): $154.99
Max Loss (per contract): -$43.00
Breakeven(s): $41.43, $44.57
Risk / Reward Ratio: 3.605

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.

UTWY butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on UTWY. 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%	-$43.00
$9.47	-77.9%	-$43.00
$18.93	-55.8%	-$43.00
$28.40	-33.7%	-$43.00
$37.86	-11.5%	-$43.00
$47.32	+10.6%	-$43.00
$56.78	+32.7%	-$43.00
$66.25	+54.8%	-$43.00
$75.71	+76.9%	-$43.00
$85.17	+99.0%	-$43.00

When traders use butterfly on UTWY

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

UTWY thesis for this butterfly

The market-implied 1-standard-deviation range for UTWY extends from approximately $38.19 on the downside to $47.41 on the upside. A UTWY long call butterfly is a pinning play: it pays maximum at the middle strike if UTWY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UTWY IV rank near 37.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on UTWY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UTWY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UTWY-specific events.

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

Frequently asked questions

What is a butterfly on UTWY?: A butterfly on UTWY is the butterfly strategy applied to UTWY (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 UTWY etf trading near $42.80, the strikes shown on this page are snapped to the nearest listed UTWY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UTWY 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 UTWY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $154.99 per contract and the computed maximum loss is -$43.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UTWY butterfly?: The breakeven for the UTWY butterfly priced on this page is roughly $41.43 and $44.57 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 UTWY market-implied 1-standard-deviation expected move is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on UTWY?: Butterflies on UTWY are pinning bets - traders use them when they expect UTWY 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 UTWY implied volatility affect this butterfly?: UTWY ATM IV is at 37.60% with IV rank near 37.97%, 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.