How are SPCH 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 SPCH butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 125.97%), the computed maximum profit is $49.49 per contract and the computed maximum loss is $2.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SPCH butterfly?

The breakeven for the SPCH 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 SPCH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 36.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SPCH implied volatility affect this butterfly?

Current SPCH ATM IV is 125.97%; IV rank context is unavailable in the current snapshot.

SPCH Butterfly Strategy

SPCH (Leverage Shares 2X Long SPCX Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

SPCH is designed for making bullish bets on the stock price of Space Exploration Technologies Corp. (NASDAQ: SPCX) or SpaceX through swap agreements. The fund seeks to obtain daily leveraged exposure equivalent to 200% of the fund's net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to SPCX's daily price movements. As a geared product, the fund is intended as a short-term tactical tool, rather than as a long-term investment vehicle. As a result, returns may deviate from the expected 2x if held for longer than a single day due to compounding. This strategy is high-risk and does not include a defensive position as part of its overall process.

SPCH (Leverage Shares 2X Long SPCX Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $303.3M, a beta of 0.00 versus the broader market, a 52-week range of 5.3-28.01, average daily share volume of 30.9M, a public-listing history dating back to 2026. These structural characteristics shape how SPCH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates SPCH 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 SPCH?

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.

SPCH snapshot

As of August 14, 2026, spot at $8.98, ATM IV 125.97%, expected move 36.11%. The butterfly on SPCH 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 28-day expiry.

Why this butterfly structure on SPCH specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SPCH is inferred from ATM IV at 125.97% alone, with a market-implied 1-standard-deviation move of approximately 36.11% (roughly $3.24 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPCH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPCH should anchor to the underlying notional of $8.98 per share and to the trader's directional view on SPCH stock.

SPCH butterfly setup

The SPCH 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 SPCH at $8.98 on that close, the first option leg uses a $8.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPCH chain at a 28-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 SPCH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$8.50	$1.45
Sell 2	Call	$9.00	$1.23
Buy 1	Call	$9.50	$0.98

SPCH butterfly risk and reward

Net Premium / Debit: +$2.50
Max Profit (per contract): $49.49
Max Loss (per contract): $2.50
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 19.796

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.

SPCH butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on SPCH. 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%	+$2.50
$1.99	-77.8%	+$2.50
$3.98	-55.7%	+$2.50
$5.96	-33.6%	+$2.50
$7.95	-11.5%	+$2.50
$9.93	+10.6%	+$2.50
$11.92	+32.7%	+$2.50
$13.90	+54.8%	+$2.50
$15.89	+76.9%	+$2.50
$17.87	+99.0%	+$2.50

When traders use butterfly on SPCH

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

SPCH thesis for this butterfly

The market-implied 1-standard-deviation range for SPCH extends from approximately $5.74 on the downside to $12.22 on the upside. A SPCH long call butterfly is a pinning play: it pays maximum at the middle strike if SPCH 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, SPCH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPCH-specific events.

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

Frequently asked questions

What is a butterfly on SPCH?: A butterfly on SPCH is the butterfly strategy applied to SPCH (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 SPCH stock at $8.98 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SPCH chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SPCH 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 SPCH butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 125.97%), the computed maximum profit is $49.49 per contract and the computed maximum loss is $2.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SPCH butterfly?: The breakeven for the SPCH 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 SPCH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 36.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on SPCH?: Butterflies on SPCH are pinning bets - traders use them when they expect SPCH 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 SPCH implied volatility affect this butterfly?: Current SPCH ATM IV is 125.97%; IV rank context is unavailable in the current snapshot.