CATG Butterfly Strategy
CATG (Leverage Shares 2x Long CAT Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
The Leverage Shares 2x Long CAT Daily ETF is an exchange traded fund designed to provide 200% (2x) the daily performance of Caterpillar Inc. stock, minus fees and expenses. This product allows sophisticated investors and active traders to gain magnified exposure to a single stock through a regulated, liquid leveraged ETF structure. The fund rebalances daily, and due to compounding, its performance for periods longer than a single day will likely differ from 2x the underlying stock's performance.
CATG (Leverage Shares 2x Long CAT Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $29.3M, a beta of -2.25 versus the broader market, a 52-week range of 4.55-19.15, average daily share volume of 82K, a public-listing history dating back to 2026, approximately 1 full-time employees. These structural characteristics shape how CATG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.25 indicates CATG 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 CATG?
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.
CATG snapshot
As of November 13, 2026, spot at $5.23, ATM IV 100.60%, expected move 28.84%. The butterfly on CATG below is built from the November 13, 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 CATG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for CATG is inferred from ATM IV at 100.60% alone, with a market-implied 1-standard-deviation move of approximately 28.84% (roughly $1.51 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 CATG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CATG should anchor to the underlying notional of $5.23 per share and to the trader's directional view on CATG etf.
CATG butterfly setup
The CATG butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CATG at $5.23 on that close, the first option leg uses a $4.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CATG 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 CATG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.97 | N/A |
| Sell 2 | Call | $5.23 | N/A |
| Buy 1 | Call | $5.49 | N/A |
CATG 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.
CATG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CATG. 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 CATG
Butterflies on CATG are pinning bets - traders use them when they expect CATG 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.
CATG thesis for this butterfly
The market-implied 1-standard-deviation range for CATG extends from approximately $3.72 on the downside to $6.74 on the upside. A CATG long call butterfly is a pinning play: it pays maximum at the middle strike if CATG 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, CATG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CATG-specific events.
CATG 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. CATG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CATG alongside the broader basket even when CATG-specific fundamentals are unchanged. Always rebuild the position from current CATG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CATG?
- A butterfly on CATG is the butterfly strategy applied to CATG (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 CATG etf at $5.23 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed CATG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CATG 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 CATG butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 100.60%), 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 CATG butterfly?
- The breakeven for the CATG butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the November 13, 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 CATG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CATG?
- Butterflies on CATG are pinning bets - traders use them when they expect CATG 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 CATG implied volatility affect this butterfly?
- Current CATG ATM IV is 100.60%; IV rank context is unavailable in the current snapshot.