XDIV Butterfly Strategy
XDIV (Roundhill Investments - S&P 500 No Dividend Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The Roundhill S&P 500 No Dividend Target ETF (“XDIV”) seeks to track the total return of the S&P 500 Index without paying distributions. XDIV is an actively-managed ETF.
XDIV (Roundhill Investments - S&P 500 No Dividend Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $13.5M, a beta of 0.95 versus the broader market, a 52-week range of 25.023-30.26, average daily share volume of 22K, a public-listing history dating back to 2025. These structural characteristics shape how XDIV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places XDIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on XDIV?
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 XDIV snapshot
As of May 15, 2026, spot at $30.15, ATM IV 35.10%, IV rank 1.32%, expected move 10.06%. The butterfly on XDIV 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 XDIV specifically: XDIV IV at 35.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a XDIV butterfly, with a market-implied 1-standard-deviation move of approximately 10.06% (roughly $3.03 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 XDIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on XDIV should anchor to the underlying notional of $30.15 per share and to the trader's directional view on XDIV etf.
XDIV butterfly setup
The XDIV 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 XDIV near $30.15, the first option leg uses a $28.64 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XDIV 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 XDIV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.64 | N/A |
| Sell 2 | Call | $30.15 | N/A |
| Buy 1 | Call | $31.66 | N/A |
XDIV butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
XDIV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on XDIV. 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.
When traders use butterfly on XDIV
Butterflies on XDIV are pinning bets - traders use them when they expect XDIV 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.
XDIV thesis for this butterfly
The market-implied 1-standard-deviation range for XDIV extends from approximately $27.12 on the downside to $33.18 on the upside. A XDIV long call butterfly is a pinning play: it pays maximum at the middle strike if XDIV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XDIV IV rank near 1.32% 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 XDIV at 35.10%. As a Financial Services name, XDIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XDIV-specific events.
XDIV 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. XDIV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XDIV alongside the broader basket even when XDIV-specific fundamentals are unchanged. Always rebuild the position from current XDIV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on XDIV?
- A butterfly on XDIV is the butterfly strategy applied to XDIV (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 XDIV etf trading near $30.15, the strikes shown on this page are snapped to the nearest listed XDIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are XDIV 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 XDIV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 35.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a XDIV butterfly?
- The breakeven for the XDIV butterfly priced on this page is no defined breakeven on the modeled curve 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 XDIV market-implied 1-standard-deviation expected move is approximately 10.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on XDIV?
- Butterflies on XDIV are pinning bets - traders use them when they expect XDIV 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 XDIV implied volatility affect this butterfly?
- XDIV ATM IV is at 35.10% with IV rank near 1.32%, 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.