QNDX Butterfly Strategy
QNDX (State Street SPDR Portfolio Nasdaq 100 ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Exchange-traded fund (ETF) that seeks to track the performance of the Nasdaq-100 Index, which consists of 100 of the largest non-financial companies listed on the Nasdaq Stock Market. The fund provides exposure primarily to large-cap growth and technology-oriented companies.
QNDX (State Street SPDR Portfolio Nasdaq 100 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $41.7M, a beta of 1.88 versus the broader market, a 52-week range of 22.4-24.98, average daily share volume of 506K, a public-listing history dating back to 2026. These structural characteristics shape how QNDX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.88 indicates QNDX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on QNDX?
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.
QNDX snapshot
As of August 14, 2026, spot at $24.73, ATM IV 21.07%, expected move 6.04%. The butterfly on QNDX 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 217-day expiry.
Why this butterfly structure on QNDX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for QNDX is inferred from ATM IV at 21.07% alone, with a market-implied 1-standard-deviation move of approximately 6.04% (roughly $1.49 on the underlying). The 217-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QNDX expiries trade a higher absolute premium for lower per-day decay. Position sizing on QNDX should anchor to the underlying notional of $24.73 per share and to the trader's directional view on QNDX stock.
QNDX butterfly setup
The QNDX 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 QNDX at $24.73 on that close, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QNDX chain at a 217-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 QNDX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $23.00 | $2.85 |
| Sell 2 | Call | $25.00 | $1.83 |
| Buy 1 | Call | $26.00 | $1.30 |
QNDX butterfly risk and reward
- Net Premium / Debit
- -$50.00
- Max Profit (per contract)
- $139.23
- Max Loss (per contract)
- -$50.00
- Breakeven(s)
- $23.50
- Risk / Reward Ratio
- 2.785
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.
QNDX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on QNDX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$50.00 |
| $5.48 | -77.9% | -$50.00 |
| $10.94 | -55.7% | -$50.00 |
| $16.41 | -33.6% | -$50.00 |
| $21.88 | -11.5% | -$50.00 |
| $27.34 | +10.6% | +$50.00 |
| $32.81 | +32.7% | +$50.00 |
| $38.28 | +54.8% | +$50.00 |
| $43.74 | +76.9% | +$50.00 |
| $49.21 | +99.0% | +$50.00 |
When traders use butterfly on QNDX
Butterflies on QNDX are pinning bets - traders use them when they expect QNDX 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.
QNDX thesis for this butterfly
The market-implied 1-standard-deviation range for QNDX extends from approximately $23.24 on the downside to $26.22 on the upside. A QNDX long call butterfly is a pinning play: it pays maximum at the middle strike if QNDX 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, QNDX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QNDX-specific events.
QNDX 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. QNDX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QNDX alongside the broader basket even when QNDX-specific fundamentals are unchanged. Always rebuild the position from current QNDX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on QNDX?
- A butterfly on QNDX is the butterfly strategy applied to QNDX (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 QNDX stock at $24.73 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed QNDX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are QNDX 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 QNDX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 21.07%), the computed maximum profit is $139.23 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QNDX butterfly?
- The breakeven for the QNDX butterfly priced on this page is roughly $23.50 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 QNDX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on QNDX?
- Butterflies on QNDX are pinning bets - traders use them when they expect QNDX 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 QNDX implied volatility affect this butterfly?
- Current QNDX ATM IV is 21.07%; IV rank context is unavailable in the current snapshot.