BUYZ Butterfly Strategy
BUYZ (Franklin Disruptive Commerce ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund seeks capital appreciation by investing in equity securities inside and outside of the United States, including developing or emerging markets. The fund invests in companies that are relevant to its investment theme of disruptive commerce that the investment manager believes will provide the customer with a more customized, secure and time-efficient buying process.
BUYZ (Franklin Disruptive Commerce ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.0M, a beta of 1.30 versus the broader market, a 52-week range of 30.81-44.775, average daily share volume of 1K, a public-listing history dating back to 2020. These structural characteristics shape how BUYZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places BUYZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BUYZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on BUYZ?
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 BUYZ snapshot
As of May 15, 2026, spot at $33.44, ATM IV 32.40%, IV rank 22.86%, expected move 9.29%. The butterfly on BUYZ 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 BUYZ specifically: BUYZ IV at 32.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a BUYZ butterfly, with a market-implied 1-standard-deviation move of approximately 9.29% (roughly $3.11 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 BUYZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BUYZ should anchor to the underlying notional of $33.44 per share and to the trader's directional view on BUYZ etf.
BUYZ butterfly setup
The BUYZ 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 BUYZ near $33.44, the first option leg uses a $31.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BUYZ 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 BUYZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.77 | N/A |
| Sell 2 | Call | $33.44 | N/A |
| Buy 1 | Call | $35.11 | N/A |
BUYZ butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BUYZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BUYZ. 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.
When traders use butterfly on BUYZ
Butterflies on BUYZ are pinning bets - traders use them when they expect BUYZ 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.
BUYZ thesis for this butterfly
The market-implied 1-standard-deviation range for BUYZ extends from approximately $30.33 on the downside to $36.55 on the upside. A BUYZ long call butterfly is a pinning play: it pays maximum at the middle strike if BUYZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BUYZ IV rank near 22.86% 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 BUYZ at 32.40%. As a Financial Services name, BUYZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BUYZ-specific events.
BUYZ 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. BUYZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BUYZ alongside the broader basket even when BUYZ-specific fundamentals are unchanged. Always rebuild the position from current BUYZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BUYZ?
- A butterfly on BUYZ is the butterfly strategy applied to BUYZ (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 BUYZ etf trading near $33.44, the strikes shown on this page are snapped to the nearest listed BUYZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BUYZ 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 BUYZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BUYZ butterfly?
- The breakeven for the BUYZ butterfly priced on this page is no defined breakeven on the modeled curve 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 BUYZ market-implied 1-standard-deviation expected move is approximately 9.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BUYZ?
- Butterflies on BUYZ are pinning bets - traders use them when they expect BUYZ 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 BUYZ implied volatility affect this butterfly?
- BUYZ ATM IV is at 32.40% with IV rank near 22.86%, 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.