How are XSVM 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 XSVM butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 17.90%), the computed maximum profit is $199.47 per contract and the computed maximum loss is -$196.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XSVM butterfly?

The breakeven for the XSVM butterfly priced on this page is roughly $69.96 and $74.04 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XSVM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XSVM implied volatility affect this butterfly?

XSVM ATM IV is at 17.90% with IV rank near 0.54%, 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.

XSVM Butterfly Strategy

XSVM (Invesco S&P SmallCap Value with Momentum ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco S&P SmallCap Value with Momentum ETF (XSVM) is designed to track the performance of the S&P 600 High Momentum Value Index. This fund primarily invests in the constituents of its underlying benchmark, aiming to allocate at least 90% of its total assets to these specific securities. The index itself is constructed from 120 companies selected from the broader S&P SmallCap 600 Index. These companies are chosen for exhibiting the highest "value" and "momentum" characteristics, which are determined by the index's proprietary calculation method. The allocation of each component within the index is dictated by its value score, meaning stocks with stronger value indicators receive a larger weighting. Both the ETF and the benchmark index are reviewed and adjusted bi-annually.

XSVM (Invesco S&P SmallCap Value with Momentum ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $647.4M, a beta of 0.91 versus the broader market, a 52-week range of 52.86-72.97, average daily share volume of 29K, a public-listing history dating back to 2005. These structural characteristics shape how XSVM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places XSVM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. XSVM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on XSVM?

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.

XSVM snapshot

As of August 14, 2026, spot at $71.59, ATM IV 17.90%, IV rank 0.54%, expected move 5.13%. The butterfly on XSVM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this butterfly structure on XSVM specifically: XSVM IV at 17.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a XSVM butterfly, with a market-implied 1-standard-deviation move of approximately 5.13% (roughly $3.67 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XSVM expiries trade a higher absolute premium for lower per-day decay. Position sizing on XSVM should anchor to the underlying notional of $71.59 per share and to the trader's directional view on XSVM etf.

XSVM butterfly setup

The XSVM butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With XSVM at $71.59 on that close, the first option leg uses a $68.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XSVM chain at a 7-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 XSVM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$68.00	$3.65
Sell 2	Call	$72.00	$0.92
Buy 1	Call	$75.00	$0.15

XSVM butterfly risk and reward

Net Premium / Debit: -$196.00
Max Profit (per contract): $199.47
Max Loss (per contract): -$196.00
Breakeven(s): $69.96, $74.04
Risk / Reward Ratio: 1.018

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.

XSVM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on XSVM. 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%	-$196.00
$15.84	-77.9%	-$196.00
$31.67	-55.8%	-$196.00
$47.49	-33.7%	-$196.00
$63.32	-11.5%	-$196.00
$79.15	+10.6%	-$96.00
$94.98	+32.7%	-$96.00
$110.80	+54.8%	-$96.00
$126.63	+76.9%	-$96.00
$142.46	+99.0%	-$96.00

When traders use butterfly on XSVM

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

XSVM thesis for this butterfly

The market-implied 1-standard-deviation range for XSVM extends from approximately $67.92 on the downside to $75.26 on the upside. A XSVM long call butterfly is a pinning play: it pays maximum at the middle strike if XSVM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current XSVM IV rank near 0.54% 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 XSVM at 17.90%. As a Financial Services name, XSVM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XSVM-specific events.

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

Frequently asked questions

What is a butterfly on XSVM?: A butterfly on XSVM is the butterfly strategy applied to XSVM (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 XSVM etf at $71.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed XSVM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are XSVM 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 XSVM butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 17.90%), the computed maximum profit is $199.47 per contract and the computed maximum loss is -$196.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XSVM butterfly?: The breakeven for the XSVM butterfly priced on this page is roughly $69.96 and $74.04 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XSVM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on XSVM?: Butterflies on XSVM are pinning bets - traders use them when they expect XSVM 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 XSVM implied volatility affect this butterfly?: XSVM ATM IV is at 17.90% with IV rank near 0.54%, 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.