How are USAX 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 USAX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 173.20%), the computed maximum profit is $55.00 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a USAX butterfly?

The breakeven for the USAX butterfly priced on this page is roughly $14.45 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 USAX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 49.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current USAX implied volatility affect this butterfly?

USAX ATM IV is at 173.20% with IV rank near 22.92%, 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.

USAX Butterfly Strategy

USAX (Tradr 2X Long USAR Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.

The Tradr 2X Long USAR Daily ETF (USAX) is a specialized financial instrument designed for short-term, tactical trading strategies. Its primary objective is to deliver twice (200%) the daily percentage change of USA Rare Earth, Inc. (USAR) stock, prior to the deduction of fees and operational expenses. To achieve this leveraged exposure, the fund predominantly engages in total return swap agreements with leading global financial institutions, which are structured to replicate USAR's daily price movements. Should these swap contracts become unavailable or less efficient, USAX retains the flexibility to employ FLEX call options or directly acquire shares of USAR stock. Investors intending to hold shares for periods exceeding a single trading day must commit to frequent monitoring and rebalancing of their positions to attempt to preserve the intended two-fold leverage. Given the intricate nature of this product, its performance generally aligns with expectations only when the underlying USAR stock demonstrates a clear trending direction, and the holder's investment is positioned to benefit from that trend.

USAX (Tradr 2X Long USAR Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $503,400, a beta of 0.00 versus the broader market, a 52-week range of 6.47-73.35, average daily share volume of 138K, a public-listing history dating back to 2026. These structural characteristics shape how USAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates USAX 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 USAX?

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.

USAX snapshot

As of August 14, 2026, spot at $14.59, ATM IV 173.20%, IV rank 22.92%, expected move 49.65%. The butterfly on USAX 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 USAX specifically: USAX IV at 173.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a USAX butterfly, with a market-implied 1-standard-deviation move of approximately 49.65% (roughly $7.24 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 USAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on USAX should anchor to the underlying notional of $14.59 per share and to the trader's directional view on USAX stock.

USAX butterfly setup

The USAX 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 USAX at $14.59 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 USAX 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 USAX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$3.35
Sell 2	Call	$15.00	$2.90
Buy 1	Call	$15.00	$2.90

USAX butterfly risk and reward

Net Premium / Debit: -$45.00
Max Profit (per contract): $55.00
Max Loss (per contract): -$45.00
Breakeven(s): $14.45
Risk / Reward Ratio: 1.222

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.

USAX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on USAX. 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%	-$45.00
$3.23	-77.8%	-$45.00
$6.46	-55.7%	-$45.00
$9.68	-33.6%	-$45.00
$12.91	-11.5%	-$45.00
$16.13	+10.6%	+$55.00
$19.36	+32.7%	+$55.00
$22.58	+54.8%	+$55.00
$25.81	+76.9%	+$55.00
$29.03	+99.0%	+$55.00

When traders use butterfly on USAX

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

USAX thesis for this butterfly

The market-implied 1-standard-deviation range for USAX extends from approximately $7.35 on the downside to $21.83 on the upside. A USAX long call butterfly is a pinning play: it pays maximum at the middle strike if USAX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current USAX IV rank near 22.92% 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 USAX at 173.20%. As a Financial Services name, USAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USAX-specific events.

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

Frequently asked questions

What is a butterfly on USAX?: A butterfly on USAX is the butterfly strategy applied to USAX (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 USAX stock at $14.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed USAX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are USAX 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 USAX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 173.20%), the computed maximum profit is $55.00 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a USAX butterfly?: The breakeven for the USAX butterfly priced on this page is roughly $14.45 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 USAX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 49.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on USAX?: Butterflies on USAX are pinning bets - traders use them when they expect USAX 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 USAX implied volatility affect this butterfly?: USAX ATM IV is at 173.20% with IV rank near 22.92%, 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.