How are XRT 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 XRT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.88%), the computed maximum profit is $218.69 per contract and the computed maximum loss is -$164.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XRT butterfly?

The breakeven for the XRT butterfly priced on this page is roughly $76.64 and $81.36 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 XRT market-implied 1-standard-deviation expected move is approximately 7.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XRT implied volatility affect this butterfly?

XRT ATM IV is at 26.88% with IV rank near 51.98%, 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.

XRT Butterfly Strategy

XRT (State Street SPDR S&P Retail ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Retail ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Retail Select Industry Index (the "Index")Seeks to provide exposure the retail segment of the S&P TMI, which comprises the following sub-industries: Apparel Retail, Automotive Retail, Broadline Retail, Computer & Electronic Retail, Consumer Staples Merchandise Retail, Drug Retail, Food Retailers, and Other Specialty Retail.Seeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocksAllows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing

XRT (State Street SPDR S&P Retail ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $328.2M, a beta of 1.37 versus the broader market, a 52-week range of 73.87-91.65, average daily share volume of 5.5M, a public-listing history dating back to 2006. These structural characteristics shape how XRT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.37 indicates XRT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. XRT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on XRT?

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 XRT snapshot

As of May 15, 2026, spot at $79.22, ATM IV 26.88%, IV rank 51.98%, expected move 7.71%. The butterfly on XRT 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 28-day expiry.

Why this butterfly structure on XRT specifically: XRT IV at 26.88% 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 7.71% (roughly $6.10 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on XRT should anchor to the underlying notional of $79.22 per share and to the trader's directional view on XRT etf.

XRT butterfly setup

The XRT 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 XRT near $79.22, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XRT chain at a 28-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 XRT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$75.00	$5.90
Sell 2	Call	$79.00	$2.62
Buy 1	Call	$83.00	$0.97

XRT butterfly risk and reward

Net Premium / Debit: -$164.00
Max Profit (per contract): $218.69
Max Loss (per contract): -$164.00
Breakeven(s): $76.64, $81.36
Risk / Reward Ratio: 1.333

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.

XRT butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on XRT. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$164.00
$17.52	-77.9%	-$164.00
$35.04	-55.8%	-$164.00
$52.55	-33.7%	-$164.00
$70.07	-11.6%	-$164.00
$87.58	+10.6%	-$164.00
$105.10	+32.7%	-$164.00
$122.61	+54.8%	-$164.00
$140.13	+76.9%	-$164.00
$157.64	+99.0%	-$164.00

When traders use butterfly on XRT

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

XRT thesis for this butterfly

The market-implied 1-standard-deviation range for XRT extends from approximately $73.12 on the downside to $85.32 on the upside. A XRT long call butterfly is a pinning play: it pays maximum at the middle strike if XRT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XRT IV rank near 51.98% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on XRT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, XRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XRT-specific events.

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

Frequently asked questions

What is a butterfly on XRT?: A butterfly on XRT is the butterfly strategy applied to XRT (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 XRT etf trading near $79.22, the strikes shown on this page are snapped to the nearest listed XRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XRT 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 XRT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.88%), the computed maximum profit is $218.69 per contract and the computed maximum loss is -$164.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XRT butterfly?: The breakeven for the XRT butterfly priced on this page is roughly $76.64 and $81.36 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 XRT market-implied 1-standard-deviation expected move is approximately 7.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on XRT?: Butterflies on XRT are pinning bets - traders use them when they expect XRT 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 XRT implied volatility affect this butterfly?: XRT ATM IV is at 26.88% with IV rank near 51.98%, 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.