How are LOFF 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 LOFF butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 127.30%), the computed maximum profit is $109.44 per contract and the computed maximum loss is $12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LOFF butterfly?

The breakeven for the LOFF butterfly priced on this page is no defined breakeven on the modeled curve 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 LOFF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 36.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LOFF implied volatility affect this butterfly?

Current LOFF ATM IV is 127.30%; IV rank context is unavailable in the current snapshot.

LOFF Butterfly Strategy

LOFF (Direxion Daily SpaceX Bull 2X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Direxion Shares ETF Trust - Direxion Daily SpaceX Bull 2X ETF is an exchange traded fund launched by Direxion Investments. It is managed by Rafferty Asset Management, LLC. The fund invests in public equity markets. The fund invests directly and through derivatives in stocks of companies operating across communication services sectors. It uses derivatives such as swaps and options to create its portfolio. It invests in growth and value stocks of companies across diversified market capitalization.

LOFF (Direxion Daily SpaceX Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.2M, a beta of 0.00 versus the broader market, a 52-week range of 8.86-46.68, average daily share volume of 1.9M, a public-listing history dating back to 2026. These structural characteristics shape how LOFF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates LOFF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LOFF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on LOFF?

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.

LOFF snapshot

As of August 14, 2026, spot at $15.04, ATM IV 127.30%, expected move 36.50%. The butterfly on LOFF 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 LOFF specifically: IV rank is unavailable in the current snapshot, so regime-based timing for LOFF is inferred from ATM IV at 127.30% alone, with a market-implied 1-standard-deviation move of approximately 36.50% (roughly $5.49 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 LOFF expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOFF should anchor to the underlying notional of $15.04 per share and to the trader's directional view on LOFF stock.

LOFF butterfly setup

The LOFF 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 LOFF at $15.04 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOFF 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 LOFF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$2.73
Sell 2	Call	$15.00	$2.38
Buy 1	Call	$16.00	$1.90

LOFF butterfly risk and reward

Net Premium / Debit: +$12.50
Max Profit (per contract): $109.44
Max Loss (per contract): $12.50
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 8.756

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.

LOFF butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on LOFF. 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%	+$12.50
$3.33	-77.8%	+$12.50
$6.66	-55.7%	+$12.50
$9.98	-33.6%	+$12.50
$13.31	-11.5%	+$12.50
$16.63	+10.6%	+$12.50
$19.96	+32.7%	+$12.50
$23.28	+54.8%	+$12.50
$26.60	+76.9%	+$12.50
$29.93	+99.0%	+$12.50

When traders use butterfly on LOFF

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

LOFF thesis for this butterfly

The market-implied 1-standard-deviation range for LOFF extends from approximately $9.55 on the downside to $20.53 on the upside. A LOFF long call butterfly is a pinning play: it pays maximum at the middle strike if LOFF settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, LOFF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOFF-specific events.

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

Frequently asked questions

What is a butterfly on LOFF?: A butterfly on LOFF is the butterfly strategy applied to LOFF (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 LOFF stock at $15.04 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LOFF chain strike and the premiums come straight from that session's bid/ask midpoint.
How are LOFF 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 LOFF butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 127.30%), the computed maximum profit is $109.44 per contract and the computed maximum loss is $12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LOFF butterfly?: The breakeven for the LOFF butterfly priced on this page is no defined breakeven on the modeled curve 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 LOFF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 36.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on LOFF?: Butterflies on LOFF are pinning bets - traders use them when they expect LOFF 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 LOFF implied volatility affect this butterfly?: Current LOFF ATM IV is 127.30%; IV rank context is unavailable in the current snapshot.