CONY Butterfly Strategy
CONY (YieldMax COIN Option Income Strategy ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
As an actively managed exchange-traded fund, the YieldMax COIN Option Income Strategy ETF (CONY) aims to deliver consistent weekly income. This is accomplished through a strategic approach involving the sale of call options or call spreads on COIN. The fund's methodology is structured to capitalize on option premiums while simultaneously allowing for participation in any gains from COIN's stock price.
CONY (YieldMax COIN Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $310.2M, a beta of 2.34 versus the broader market, a 52-week range of 17.22-78.2, average daily share volume of 421K, a public-listing history dating back to 2023. These structural characteristics shape how CONY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.34 indicates CONY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CONY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CONY?
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.
CONY snapshot
As of August 14, 2026, spot at $18.03, ATM IV 50.00%, IV rank 9.60%, expected move 14.33%. The butterfly on CONY 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 CONY specifically: CONY IV at 50.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a CONY butterfly, with a market-implied 1-standard-deviation move of approximately 14.33% (roughly $2.58 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 CONY expiries trade a higher absolute premium for lower per-day decay. Position sizing on CONY should anchor to the underlying notional of $18.03 per share and to the trader's directional view on CONY etf.
CONY butterfly setup
The CONY 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 CONY at $18.03 on that close, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CONY 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 CONY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.00 | $1.25 |
| Sell 2 | Call | $18.00 | $0.75 |
| Buy 1 | Call | $19.00 | $0.43 |
CONY butterfly risk and reward
- Net Premium / Debit
- -$17.50
- Max Profit (per contract)
- $76.94
- Max Loss (per contract)
- -$17.50
- Breakeven(s)
- $17.18, $18.83
- Risk / Reward Ratio
- 4.397
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.
CONY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CONY. 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% | -$17.50 |
| $4.00 | -77.8% | -$17.50 |
| $7.98 | -55.7% | -$17.50 |
| $11.97 | -33.6% | -$17.50 |
| $15.95 | -11.5% | -$17.50 |
| $19.94 | +10.6% | -$17.50 |
| $23.92 | +32.7% | -$17.50 |
| $27.91 | +54.8% | -$17.50 |
| $31.89 | +76.9% | -$17.50 |
| $35.88 | +99.0% | -$17.50 |
When traders use butterfly on CONY
Butterflies on CONY are pinning bets - traders use them when they expect CONY 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.
CONY thesis for this butterfly
The market-implied 1-standard-deviation range for CONY extends from approximately $15.45 on the downside to $20.61 on the upside. A CONY long call butterfly is a pinning play: it pays maximum at the middle strike if CONY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CONY IV rank near 9.60% 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 CONY at 50.00%. As a Financial Services name, CONY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CONY-specific events.
CONY 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. CONY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CONY alongside the broader basket even when CONY-specific fundamentals are unchanged. Always rebuild the position from current CONY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CONY?
- A butterfly on CONY is the butterfly strategy applied to CONY (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 CONY etf at $18.03 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CONY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CONY 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 CONY butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.00%), the computed maximum profit is $76.94 per contract and the computed maximum loss is -$17.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CONY butterfly?
- The breakeven for the CONY butterfly priced on this page is roughly $17.18 and $18.83 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 CONY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CONY?
- Butterflies on CONY are pinning bets - traders use them when they expect CONY 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 CONY implied volatility affect this butterfly?
- CONY ATM IV is at 50.00% with IV rank near 9.60%, 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.