How are APLZ 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 APLZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 165.30%), the computed maximum profit is $84.44 per contract and the computed maximum loss is -$10.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a APLZ butterfly?

The breakeven for the APLZ butterfly priced on this page is roughly $17.10 and $18.91 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 APLZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current APLZ implied volatility affect this butterfly?

APLZ ATM IV is at 165.30% with IV rank near 12.01%, 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.

APLZ Butterfly Strategy

APLZ (Tradr 2X Short APLD Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.

APLZ functions as a short-term, tactical investment product, targeting a daily return equal to negative two times the price movement of Applied Digital Corporation (APLD) stock, before accounting for fees and expenses. For investors holding shares beyond a single day, frequent monitoring and rebalancing of their position will be essential to potentially maintain the intended -2x leverage. Beyond its inverse exposure, this ETF experiences elevated volatility due to its lack of diversification, being concentrated solely on APLD. Prospective investors are strongly advised to undertake thorough individual research on the underlying APLD stock before initiating a position and to trade with conviction. Given the inherent complexities, the product's performance typically aligns with expectations only when the underlying APLD stock exhibits a clear trend and the holder has correctly anticipated that market direction. A notable advantage, however, is that the maximum potential loss is strictly limited to the initial capital invested.

APLZ (Tradr 2X Short APLD Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $132,159, a beta of -5.98 versus the broader market, a 52-week range of 11.27-156.75, average daily share volume of 237K, a public-listing history dating back to 2026. These structural characteristics shape how APLZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -5.98 indicates APLZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a butterfly on APLZ?

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.

APLZ snapshot

As of August 14, 2026, spot at $18.03, ATM IV 165.30%, IV rank 12.01%, expected move 47.39%. The butterfly on APLZ 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 35-day expiry.

Why this butterfly structure on APLZ specifically: APLZ IV at 165.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a APLZ butterfly, with a market-implied 1-standard-deviation move of approximately 47.39% (roughly $8.54 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated APLZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on APLZ should anchor to the underlying notional of $18.03 per share and to the trader's directional view on APLZ stock.

APLZ butterfly setup

The APLZ 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 APLZ at $18.03 on that close, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed APLZ chain at a 35-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 APLZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.00	$4.20
Sell 2	Call	$18.00	$3.75
Buy 1	Call	$19.00	$3.40

APLZ butterfly risk and reward

Net Premium / Debit: -$10.00
Max Profit (per contract): $84.44
Max Loss (per contract): -$10.00
Breakeven(s): $17.10, $18.91
Risk / Reward Ratio: 8.444

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.

APLZ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on APLZ. 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	-99.9%	-$10.00
$4.00	-77.8%	-$10.00
$7.98	-55.7%	-$10.00
$11.97	-33.6%	-$10.00
$15.95	-11.5%	-$10.00
$19.94	+10.6%	-$10.00
$23.92	+32.7%	-$10.00
$27.91	+54.8%	-$10.00
$31.89	+76.9%	-$10.00
$35.88	+99.0%	-$10.00

When traders use butterfly on APLZ

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

APLZ thesis for this butterfly

The market-implied 1-standard-deviation range for APLZ extends from approximately $9.49 on the downside to $26.57 on the upside. A APLZ long call butterfly is a pinning play: it pays maximum at the middle strike if APLZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current APLZ IV rank near 12.01% 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 APLZ at 165.30%. As a Financial Services name, APLZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to APLZ-specific events.

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

Frequently asked questions

What is a butterfly on APLZ?: A butterfly on APLZ is the butterfly strategy applied to APLZ (stock). 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 APLZ stock at $18.03 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed APLZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are APLZ 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 APLZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 165.30%), the computed maximum profit is $84.44 per contract and the computed maximum loss is -$10.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a APLZ butterfly?: The breakeven for the APLZ butterfly priced on this page is roughly $17.10 and $18.91 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 APLZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on APLZ?: Butterflies on APLZ are pinning bets - traders use them when they expect APLZ 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 APLZ implied volatility affect this butterfly?: APLZ ATM IV is at 165.30% with IV rank near 12.01%, 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.