How are WTPI 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 WTPI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 74.80%), the computed maximum profit is $113.95 per contract and the computed maximum loss is -$78.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WTPI butterfly?

The breakeven for the WTPI butterfly priced on this page is roughly $31.78 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 WTPI market-implied 1-standard-deviation expected move is approximately 21.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WTPI implied volatility affect this butterfly?

WTPI ATM IV is at 74.80% with IV rank near 15.71%, 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.

WTPI Butterfly Strategy

WTPI (WisdomTree Equity Premium Income Fund), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.

The WisdomTree Equity Premium Income Fund (WTPI) is an exchange-traded fund provided by WisdomTree, Inc. This ETF is designed to offer a consistent income stream to its investors by executing a strategy of selling put options on the S&P 500 Index every two weeks, with the objective of capturing a 2.5% premium. This approach is intended to exploit the volatility premium found within the options market, which can create significant income-generating opportunities, particularly when stock markets are either stable or experiencing a downturn.

WTPI (WisdomTree Equity Premium Income Fund) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $479.8M, a beta of 0.58 versus the broader market, a 52-week range of 31.04-33.92, average daily share volume of 91K, a public-listing history dating back to 2007. These structural characteristics shape how WTPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates WTPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WTPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on WTPI?

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 WTPI snapshot

As of June 30, 2026, spot at $32.75, ATM IV 74.80%, IV rank 15.71%, expected move 21.44%. The butterfly on WTPI 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 WTPI specifically: WTPI IV at 74.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a WTPI butterfly, with a market-implied 1-standard-deviation move of approximately 21.44% (roughly $7.02 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 WTPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTPI should anchor to the underlying notional of $32.75 per share and to the trader's directional view on WTPI etf.

WTPI butterfly setup

The WTPI 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 WTPI near $32.75, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTPI 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 WTPI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$31.00	$2.54
Sell 2	Call	$33.00	$1.30
Buy 1	Call	$34.00	$0.84

WTPI butterfly risk and reward

Net Premium / Debit: -$78.00
Max Profit (per contract): $113.95
Max Loss (per contract): -$78.00
Breakeven(s): $31.78
Risk / Reward Ratio: 1.461

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.

WTPI butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on WTPI. 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%	-$78.00
$7.25	-77.9%	-$78.00
$14.49	-55.8%	-$78.00
$21.73	-33.6%	-$78.00
$28.97	-11.5%	-$78.00
$36.21	+10.6%	+$22.00
$43.45	+32.7%	+$22.00
$50.69	+54.8%	+$22.00
$57.93	+76.9%	+$22.00
$65.17	+99.0%	+$22.00

When traders use butterfly on WTPI

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

WTPI thesis for this butterfly

The market-implied 1-standard-deviation range for WTPI extends from approximately $25.73 on the downside to $39.77 on the upside. A WTPI long call butterfly is a pinning play: it pays maximum at the middle strike if WTPI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WTPI IV rank near 15.71% 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 WTPI at 74.80%. As a Financial Services name, WTPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTPI-specific events.

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

Frequently asked questions

What is a butterfly on WTPI?: A butterfly on WTPI is the butterfly strategy applied to WTPI (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 WTPI etf trading near $32.75, the strikes shown on this page are snapped to the nearest listed WTPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WTPI 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 WTPI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 74.80%), the computed maximum profit is $113.95 per contract and the computed maximum loss is -$78.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WTPI butterfly?: The breakeven for the WTPI butterfly priced on this page is roughly $31.78 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 WTPI market-implied 1-standard-deviation expected move is approximately 21.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on WTPI?: Butterflies on WTPI are pinning bets - traders use them when they expect WTPI 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 WTPI implied volatility affect this butterfly?: WTPI ATM IV is at 74.80% with IV rank near 15.71%, 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.