BULG Butterfly Strategy
BULG (Leverage Shares 2x Long BULL Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The BULG exchange-traded fund (ETF) is a specialized 2x daily leveraged instrument, designed for active traders who aim to amplify their short-term market gains. This "bull" fund seeks to deliver twice the daily performance (200%) of BULL stock, excluding any associated fees and operational costs.
BULG (Leverage Shares 2x Long BULL Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $600,539, a beta of 7.12 versus the broader market, a 52-week range of 18.36-369.46, average daily share volume of 7K, a public-listing history dating back to 2025. These structural characteristics shape how BULG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 7.12 indicates BULG 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 BULG?
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.
BULG snapshot
As of August 14, 2026, spot at $45.44, ATM IV 124.70%, IV rank 22.09%, expected move 35.75%. The butterfly on BULG 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 BULG specifically: BULG IV at 124.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a BULG butterfly, with a market-implied 1-standard-deviation move of approximately 35.75% (roughly $16.24 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 BULG expiries trade a higher absolute premium for lower per-day decay. Position sizing on BULG should anchor to the underlying notional of $45.44 per share and to the trader's directional view on BULG etf.
BULG butterfly setup
The BULG 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 BULG at $45.44 on that close, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BULG 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 BULG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $43.00 | $8.00 |
| Sell 2 | Call | $45.00 | $7.10 |
| Buy 1 | Call | $47.00 | $6.40 |
BULG butterfly risk and reward
- Net Premium / Debit
- -$20.00
- Max Profit (per contract)
- $158.33
- Max Loss (per contract)
- -$20.00
- Breakeven(s)
- $43.17, $46.82
- Risk / Reward Ratio
- 7.917
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.
BULG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BULG. 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% | -$20.00 |
| $10.06 | -77.9% | -$20.00 |
| $20.10 | -55.8% | -$20.00 |
| $30.15 | -33.7% | -$20.00 |
| $40.19 | -11.5% | -$20.00 |
| $50.24 | +10.6% | -$20.00 |
| $60.29 | +32.7% | -$20.00 |
| $70.33 | +54.8% | -$20.00 |
| $80.38 | +76.9% | -$20.00 |
| $90.42 | +99.0% | -$20.00 |
When traders use butterfly on BULG
Butterflies on BULG are pinning bets - traders use them when they expect BULG 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.
BULG thesis for this butterfly
The market-implied 1-standard-deviation range for BULG extends from approximately $29.20 on the downside to $61.68 on the upside. A BULG long call butterfly is a pinning play: it pays maximum at the middle strike if BULG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BULG IV rank near 22.09% 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 BULG at 124.70%. As a Financial Services name, BULG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BULG-specific events.
BULG 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. BULG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BULG alongside the broader basket even when BULG-specific fundamentals are unchanged. Always rebuild the position from current BULG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BULG?
- A butterfly on BULG is the butterfly strategy applied to BULG (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 BULG etf at $45.44 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BULG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BULG 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 BULG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 124.70%), the computed maximum profit is $158.33 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BULG butterfly?
- The breakeven for the BULG butterfly priced on this page is roughly $43.17 and $46.82 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 BULG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 35.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BULG?
- Butterflies on BULG are pinning bets - traders use them when they expect BULG 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 BULG implied volatility affect this butterfly?
- BULG ATM IV is at 124.70% with IV rank near 22.09%, 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.