XMAG P&L Curve
Large Cap Ex-Mag 7 ETF (XMAG) operates in the Financial Services sector, specifically the Asset Management industry, with a market capitalization near $47.6M, listed on NASDAQ, carrying a beta of 0.82 to the broader market. The Defiance Large Cap ex-Magnificent Seven ETF (the “Fund”) seeks to track the performance, before fees and expenses, of the BITA US 500 ex-Magnificent 7 Index (the “Index”). public since 2024-10-23.
A profit/loss curve charts the theoretical gain or loss of an options position across a range of underlying prices. It helps traders visualize risk, identify breakeven points, and compare strategies before committing capital.
- Exchange
- NASDAQ
- Sector
- Financial Services
- Industry
- Asset Management
- Market Cap
- $47.6M
- IPO Date
- 2024-10-23
- Beta
- 0.82
At the current $24.65 spot price with 36.2% ATM implied volatility and 34 days to the front expiration, an at-the-money long straddle carries an approximate combined premium near $2.18, producing breakevens at roughly $22.47 and $26.83. Market-implied 1-standard-deviation range extends from $22.09 to $27.21, which sets the relevant P&L evaluation window for most near-term strategies. Payoff diagrams should be rebuilt from the live options chain; the preceding values are illustrative and assume a single at-the-money straddle for reference.
Frequently asked XMAG pl curve questions
- What does a XMAG ATM straddle cost today?
- Using current XMAG pricing (36.2% ATM IV, 34-day front expiration, $24.65 spot), an at-the-money long straddle (long call + long put at the same strike) carries an approximate combined premium near $2.18 per spread. Breakevens land at roughly $26.83 on the upside and $22.47 on the downside. The estimate uses the Brenner-Subrahmanyam approximation for at-the-money options under Black-Scholes.
- How do I read an options P&L curve?
- An options P&L curve plots theoretical position value at expiration (or at any chosen evaluation date) against the underlying price. The X-axis is the underlying price scenario, the Y-axis is position dollar P&L. The shape of the curve tells you the strategy's directional sensitivity, breakeven points, maximum profit and loss levels, and where time decay or volatility shifts will be most impactful. Multi-leg structures combine the curves of the individual legs to produce composite payoff diagrams.
- What's the difference between a P&L curve and a payoff diagram?
- Strictly: a payoff diagram shows option value at expiration (no time premium left), while a P&L curve typically shows position value at any evaluation date (with remaining time premium). The expiration payoff diagram has kinks at the strikes; the early P&L curve is smooth. For directional-vega trades, the early P&L curve also responds to IV shifts that the expiration payoff diagram does not capture - which is why options traders often look at both views.
- Why are illustrative XMAG P&L numbers approximate?
- The numbers above use Black-Scholes assumptions (lognormal returns, constant volatility, no early exercise, no dividends). Real-world option prices reflect skew, term structure, jump risk, and (for US-style options) early exercise premium. Use the live options chain for actual quoted bid/ask prices when sizing trades; the values here illustrate magnitude only.