How are XSOE 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 XSOE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.00%), the computed maximum profit is $165.79 per contract and the computed maximum loss is -$127.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XSOE butterfly?

The breakeven for the XSOE butterfly priced on this page is roughly $47.25 and $50.73 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 XSOE market-implied 1-standard-deviation expected move is approximately 10.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XSOE implied volatility affect this butterfly?

XSOE ATM IV is at 36.00% with IV rank near 41.81%, 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.

XSOE Butterfly Strategy

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

Typically, the fund commits a minimum of 80% of its total assets to the specific securities included in its underlying index, or to other investments that share substantially similar economic characteristics with those index components. This benchmark is a modified float-adjusted market capitalization-weighted index, which is composed of ordinary shares from developing nations, but explicitly omits common stocks issued by government-controlled entities. It's important to note that this fund operates as a non-diversified investment vehicle.

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.16B, a beta of 1.17 versus the broader market, a 52-week range of 34.21-51.38, average daily share volume of 159K, a public-listing history dating back to 2014. These structural characteristics shape how XSOE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.17 places XSOE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. XSOE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on XSOE?

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 XSOE snapshot

As of June 30, 2026, spot at $49.17, ATM IV 36.00%, IV rank 41.81%, expected move 10.32%. The butterfly on XSOE 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 XSOE specifically: XSOE IV at 36.00% 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 10.32% (roughly $5.07 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 XSOE expiries trade a higher absolute premium for lower per-day decay. Position sizing on XSOE should anchor to the underlying notional of $49.17 per share and to the trader's directional view on XSOE etf.

XSOE butterfly setup

The XSOE 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 XSOE near $49.17, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XSOE 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 XSOE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$47.00	$2.80
Sell 2	Call	$49.00	$1.50
Buy 1	Call	$52.00	$0.47

XSOE butterfly risk and reward

Net Premium / Debit: -$27.00
Max Profit (per contract): $165.79
Max Loss (per contract): -$127.00
Breakeven(s): $47.25, $50.73
Risk / Reward Ratio: 1.305

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.

XSOE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on XSOE. 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%	-$27.00
$10.88	-77.9%	-$27.00
$21.75	-55.8%	-$27.00
$32.62	-33.7%	-$27.00
$43.49	-11.5%	-$27.00
$54.36	+10.6%	-$127.00
$65.23	+32.7%	-$127.00
$76.10	+54.8%	-$127.00
$86.98	+76.9%	-$127.00
$97.85	+99.0%	-$127.00

When traders use butterfly on XSOE

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

XSOE thesis for this butterfly

The market-implied 1-standard-deviation range for XSOE extends from approximately $44.10 on the downside to $54.24 on the upside. A XSOE long call butterfly is a pinning play: it pays maximum at the middle strike if XSOE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XSOE IV rank near 41.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on XSOE should anchor more to the directional view and the expected-move geometry. As a Financial Services name, XSOE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XSOE-specific events.

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

Frequently asked questions

What is a butterfly on XSOE?: A butterfly on XSOE is the butterfly strategy applied to XSOE (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 XSOE etf trading near $49.17, the strikes shown on this page are snapped to the nearest listed XSOE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XSOE 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 XSOE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.00%), the computed maximum profit is $165.79 per contract and the computed maximum loss is -$127.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XSOE butterfly?: The breakeven for the XSOE butterfly priced on this page is roughly $47.25 and $50.73 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 XSOE market-implied 1-standard-deviation expected move is approximately 10.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on XSOE?: Butterflies on XSOE are pinning bets - traders use them when they expect XSOE 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 XSOE implied volatility affect this butterfly?: XSOE ATM IV is at 36.00% with IV rank near 41.81%, 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.