How are IREZ 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 IREZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 198.10%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IREZ butterfly?

The breakeven for the IREZ butterfly priced on this page is roughly $10.33 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 IREZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 56.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IREZ implied volatility affect this butterfly?

IREZ ATM IV is at 198.10% with IV rank near 43.43%, 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.

IREZ Butterfly Strategy

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

IREZ is a specialized, daily trading vehicle designed to deliver twice the inverse performance of IREN Limited (NASDAQ: IREN) stock's price movement, before accounting for associated fees and expenses. This leverage is intended to apply strictly to a single trading day. Investors who extend their holding period beyond one day will find it necessary to diligently monitor and frequently rebalance their positions if they aim to approximate the targeted -2x multiple, due to the effects of compounding. Beyond its inverse characteristic, this product inherently carries heightened volatility given its concentrated exposure to a single equity, lacking the risk mitigation benefits of diversification. Prospective buyers are strongly advised to conduct thorough, independent research into IREN Limited before committing capital, ensuring their investment decision is well-founded. Given its intricate structure, the ETF's performance generally aligns with expectations only during periods when the underlying IREN stock exhibits a clear, sustained trend, and the investor accurately anticipates that direction.

IREZ (Tradr 2X Short IREN Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $522,582, a beta of -6.19 versus the broader market, a 52-week range of 9.8789-119.01, average daily share volume of 2.2M, a public-listing history dating back to 2026. These structural characteristics shape how IREZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -6.19 indicates IREZ 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 IREZ?

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.

IREZ snapshot

As of August 14, 2026, spot at $10.16, ATM IV 198.10%, IV rank 43.43%, expected move 56.79%. The butterfly on IREZ 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 IREZ specifically: IREZ IV at 198.10% 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 56.79% (roughly $5.77 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 IREZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on IREZ should anchor to the underlying notional of $10.16 per share and to the trader's directional view on IREZ stock.

IREZ butterfly setup

The IREZ 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 IREZ at $10.16 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IREZ 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 IREZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$2.33
Sell 2	Call	$10.00	$2.33
Buy 1	Call	$11.00	$2.00

IREZ butterfly risk and reward

Net Premium / Debit: +$32.50
Max Profit (per contract): $32.50
Max Loss (per contract): -$67.50
Breakeven(s): $10.33
Risk / Reward Ratio: 0.481

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.

IREZ butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on IREZ. 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%	+$32.50
$2.26	-77.8%	+$32.50
$4.50	-55.7%	+$32.50
$6.75	-33.6%	+$32.50
$8.99	-11.5%	+$32.50
$11.24	+10.6%	-$67.50
$13.48	+32.7%	-$67.50
$15.73	+54.8%	-$67.50
$17.97	+76.9%	-$67.50
$20.22	+99.0%	-$67.50

When traders use butterfly on IREZ

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

IREZ thesis for this butterfly

The market-implied 1-standard-deviation range for IREZ extends from approximately $4.39 on the downside to $15.93 on the upside. A IREZ long call butterfly is a pinning play: it pays maximum at the middle strike if IREZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IREZ IV rank near 43.43% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on IREZ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, IREZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IREZ-specific events.

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

Frequently asked questions

What is a butterfly on IREZ?: A butterfly on IREZ is the butterfly strategy applied to IREZ (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 IREZ stock at $10.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IREZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IREZ 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 IREZ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 198.10%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IREZ butterfly?: The breakeven for the IREZ butterfly priced on this page is roughly $10.33 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 IREZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 56.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on IREZ?: Butterflies on IREZ are pinning bets - traders use them when they expect IREZ 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 IREZ implied volatility affect this butterfly?: IREZ ATM IV is at 198.10% with IV rank near 43.43%, 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.