BSOL Butterfly Strategy
BSOL (Bitwise Solana Staking ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
BSOL’s principal investment strategy is to invest directly in Solana (SOL), while aiming to stake 100% of assets to maximize Solana’s staking rewards. The Fund is a professionally managed and cost-efficient ETP that is fully backed with SOL held at one of the world’s leading crypto asset custodians.
BSOL (Bitwise Solana Staking ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $150.3M, a beta of 0.67 versus the broader market, a 52-week range of 10.095-26.6, average daily share volume of 2.3M, a public-listing history dating back to 2025. These structural characteristics shape how BSOL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates BSOL 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 BSOL?
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.
Current BSOL snapshot
As of May 15, 2026, spot at $12.06, ATM IV 56.50%, expected move 16.20%. The butterfly on BSOL below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this butterfly structure on BSOL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BSOL is inferred from ATM IV at 56.50% alone, with a market-implied 1-standard-deviation move of approximately 16.20% (roughly $1.95 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BSOL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BSOL should anchor to the underlying notional of $12.06 per share and to the trader's directional view on BSOL etf.
BSOL butterfly setup
The BSOL butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BSOL near $12.06, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BSOL chain at a 34-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 BSOL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.00 | $1.55 |
| Sell 2 | Call | $12.00 | $0.90 |
| Buy 1 | Call | $13.00 | $0.50 |
BSOL butterfly risk and reward
- Net Premium / Debit
- -$25.00
- Max Profit (per contract)
- $74.56
- Max Loss (per contract)
- -$25.00
- Breakeven(s)
- $11.25, $12.75
- Risk / Reward Ratio
- 2.982
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.
BSOL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BSOL. 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 | -99.9% | -$25.00 |
| $2.68 | -77.8% | -$25.00 |
| $5.34 | -55.7% | -$25.00 |
| $8.01 | -33.6% | -$25.00 |
| $10.67 | -11.5% | -$25.00 |
| $13.34 | +10.6% | -$25.00 |
| $16.00 | +32.7% | -$25.00 |
| $18.67 | +54.8% | -$25.00 |
| $21.33 | +76.9% | -$25.00 |
| $24.00 | +99.0% | -$25.00 |
When traders use butterfly on BSOL
Butterflies on BSOL are pinning bets - traders use them when they expect BSOL 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.
BSOL thesis for this butterfly
The market-implied 1-standard-deviation range for BSOL extends from approximately $10.11 on the downside to $14.01 on the upside. A BSOL long call butterfly is a pinning play: it pays maximum at the middle strike if BSOL 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, BSOL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BSOL-specific events.
BSOL 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. BSOL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BSOL alongside the broader basket even when BSOL-specific fundamentals are unchanged. Always rebuild the position from current BSOL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BSOL?
- A butterfly on BSOL is the butterfly strategy applied to BSOL (etf). 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 BSOL etf trading near $12.06, the strikes shown on this page are snapped to the nearest listed BSOL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BSOL 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 BSOL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 56.50%), the computed maximum profit is $74.56 per contract and the computed maximum loss is -$25.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BSOL butterfly?
- The breakeven for the BSOL butterfly priced on this page is roughly $11.25 and $12.75 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current BSOL market-implied 1-standard-deviation expected move is approximately 16.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BSOL?
- Butterflies on BSOL are pinning bets - traders use them when they expect BSOL 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 BSOL implied volatility affect this butterfly?
- Current BSOL ATM IV is 56.50%; IV rank context is unavailable in the current snapshot.