QQQ Iron Butterfly — Jun 18, 2026

QQQ (POWERSHARES QQQ TRUST SERIES 1) presents a iron butterfly opportunity with elevated implied volatility. IV Rank 52. IV 1945.0% trades 625.0pp above 30-day HV (1320.0%). This setup favors net premium sellers.

Sell the $594.78 ATM put and the $594.78 ATM call simultaneously (both at the same strike near the underlying), with long wings further out for defined risk. Higher max profit than a condor but a tighter profit window — ideal when you expect a stalling move into expiration. Underlying ~$596.00, 53 DTE. Max profit $974 per contract, max loss $26, 3746.2% return on risk, 15% POP. Breakevens at $585.04 and $604.52.

Management: take profit at ~50% of max profit ($487). Cut at 2x credit ($1948 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.

Underlying: QQQ @ ~$664.23 Expiration: Jun 18, 2026 (53 DTE) Legs:

• Sell QQQ Jun 18, 2026 $594.78 Put (delta -0.14, mid $5.11)
• Buy QQQ Jun 18, 2026 $584.78 Put (delta -0.11, mid $4.28)
• Sell QQQ Jun 18, 2026 $594.78 Call (delta 0.82, mid $77.32)
• Buy QQQ Jun 18, 2026 $604.78 Call (delta 0.80, mid $68.41)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~1.3% of mid) before sending.

Take profit at 50% of max profit ($487). Cut loss if position reaches 2x credit received ($1948 loss). Roll if tested with > 14 DTE remaining.