CLIP Butterfly Strategy
CLIP (Global X - 1-3 Month T-Bill ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.
The Global X 1-3 Month T-Bill ETF, identified by its ticker CLIP, is designed to mirror the financial outcomes, encompassing both capital appreciation and income generated, of the Solactive 1-3 month US T-Bill Index. This objective is considered before accounting for any associated management fees or operational expenses.
CLIP (Global X - 1-3 Month T-Bill ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $1.72B, a beta of 0.01 versus the broader market, a 52-week range of 100.05-100.45, average daily share volume of 342K, a public-listing history dating back to 2023. These structural characteristics shape how CLIP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.01 indicates CLIP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CLIP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CLIP?
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.
CLIP snapshot
As of August 14, 2026, spot at $100.22, ATM IV 11.20%, expected move 3.21%. The butterfly on CLIP 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 CLIP specifically: IV rank is unavailable in the current snapshot, so regime-based timing for CLIP is inferred from ATM IV at 11.20% alone, with a market-implied 1-standard-deviation move of approximately 3.21% (roughly $3.22 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 CLIP expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLIP should anchor to the underlying notional of $100.22 per share and to the trader's directional view on CLIP etf.
CLIP butterfly setup
The CLIP 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 CLIP at $100.22 on that close, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLIP 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 CLIP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $95.00 | $5.08 |
| Sell 2 | Call | $100.00 | $1.88 |
| Buy 1 | Call | $105.00 | $0.35 |
CLIP butterfly risk and reward
- Net Premium / Debit
- -$166.50
- Max Profit (per contract)
- $305.64
- Max Loss (per contract)
- -$166.50
- Breakeven(s)
- $96.67, $103.34
- Risk / Reward Ratio
- 1.836
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.
CLIP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CLIP. 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% | -$166.50 |
| $22.17 | -77.9% | -$166.50 |
| $44.33 | -55.8% | -$166.50 |
| $66.48 | -33.7% | -$166.50 |
| $88.64 | -11.6% | -$166.50 |
| $110.80 | +10.6% | -$166.50 |
| $132.96 | +32.7% | -$166.50 |
| $155.12 | +54.8% | -$166.50 |
| $177.27 | +76.9% | -$166.50 |
| $199.43 | +99.0% | -$166.50 |
When traders use butterfly on CLIP
Butterflies on CLIP are pinning bets - traders use them when they expect CLIP 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.
CLIP thesis for this butterfly
The market-implied 1-standard-deviation range for CLIP extends from approximately $97.00 on the downside to $103.44 on the upside. A CLIP long call butterfly is a pinning play: it pays maximum at the middle strike if CLIP 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, CLIP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLIP-specific events.
CLIP 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. CLIP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CLIP alongside the broader basket even when CLIP-specific fundamentals are unchanged. Always rebuild the position from current CLIP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CLIP?
- A butterfly on CLIP is the butterfly strategy applied to CLIP (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 CLIP etf at $100.22 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CLIP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CLIP 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 CLIP butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 11.20%), the computed maximum profit is $305.64 per contract and the computed maximum loss is -$166.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CLIP butterfly?
- The breakeven for the CLIP butterfly priced on this page is roughly $96.67 and $103.34 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 CLIP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CLIP?
- Butterflies on CLIP are pinning bets - traders use them when they expect CLIP 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 CLIP implied volatility affect this butterfly?
- Current CLIP ATM IV is 11.20%; IV rank context is unavailable in the current snapshot.