CMGG Butterfly Strategy
CMGG (Leverage Shares 2x Long CMG Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The Leverage Shares 2x Long CMG Daily ETF, identified as CMGG, is an Exchange Traded Fund specifically engineered to provide amplified exposure to the daily price fluctuations of CMG stock. This instrument caters to active market participants aiming to significantly boost their short-term returns. CMGG's core objective is to achieve a daily performance that is double (200%) the percentage change of the underlying CMG shares, after all associated fees and expenses are considered.
CMGG (Leverage Shares 2x Long CMG Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $579,776, a beta of 1.70 versus the broader market, a 52-week range of 10.477-24.683, average daily share volume of 9K, a public-listing history dating back to 2025. These structural characteristics shape how CMGG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.70 indicates CMGG 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 CMGG?
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 CMGG snapshot
As of June 29, 2026, spot at $13.96, ATM IV 70.10%, expected move 20.10%. The butterfly on CMGG 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 18-day expiry.
Why this butterfly structure on CMGG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for CMGG is inferred from ATM IV at 70.10% alone, with a market-implied 1-standard-deviation move of approximately 20.10% (roughly $2.81 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CMGG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMGG should anchor to the underlying notional of $13.96 per share and to the trader's directional view on CMGG etf.
CMGG butterfly setup
The CMGG 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 CMGG near $13.96, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMGG chain at a 18-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 CMGG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $1.43 |
| Sell 2 | Call | $14.00 | $0.85 |
| Buy 1 | Call | $15.00 | $0.48 |
CMGG butterfly risk and reward
- Net Premium / Debit
- -$20.50
- Max Profit (per contract)
- $75.99
- Max Loss (per contract)
- -$20.50
- Breakeven(s)
- $13.21, $14.80
- Risk / Reward Ratio
- 3.707
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.
CMGG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CMGG. 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% | -$20.50 |
| $3.10 | -77.8% | -$20.50 |
| $6.18 | -55.7% | -$20.50 |
| $9.27 | -33.6% | -$20.50 |
| $12.35 | -11.5% | -$20.50 |
| $15.44 | +10.6% | -$20.50 |
| $18.52 | +32.7% | -$20.50 |
| $21.61 | +54.8% | -$20.50 |
| $24.69 | +76.9% | -$20.50 |
| $27.78 | +99.0% | -$20.50 |
When traders use butterfly on CMGG
Butterflies on CMGG are pinning bets - traders use them when they expect CMGG 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.
CMGG thesis for this butterfly
The market-implied 1-standard-deviation range for CMGG extends from approximately $11.15 on the downside to $16.77 on the upside. A CMGG long call butterfly is a pinning play: it pays maximum at the middle strike if CMGG 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, CMGG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMGG-specific events.
CMGG 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. CMGG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CMGG alongside the broader basket even when CMGG-specific fundamentals are unchanged. Always rebuild the position from current CMGG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CMGG?
- A butterfly on CMGG is the butterfly strategy applied to CMGG (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 CMGG etf trading near $13.96, the strikes shown on this page are snapped to the nearest listed CMGG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CMGG 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 CMGG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 70.10%), the computed maximum profit is $75.99 per contract and the computed maximum loss is -$20.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CMGG butterfly?
- The breakeven for the CMGG butterfly priced on this page is roughly $13.21 and $14.80 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 CMGG market-implied 1-standard-deviation expected move is approximately 20.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CMGG?
- Butterflies on CMGG are pinning bets - traders use them when they expect CMGG 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 CMGG implied volatility affect this butterfly?
- Current CMGG ATM IV is 70.10%; IV rank context is unavailable in the current snapshot.