DIG Butterfly Strategy
DIG (ProShares - Ultra Energy), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra Energy seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Energy Select SectorSM Index.
DIG (ProShares - Ultra Energy) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $86.0M, a beta of 0.17 versus the broader market, a 52-week range of 30.21-71.52, average daily share volume of 88K, a public-listing history dating back to 2007. These structural characteristics shape how DIG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.17 indicates DIG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DIG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DIG?
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 DIG snapshot
As of May 15, 2026, spot at $61.48, ATM IV 53.30%, IV rank 58.70%, expected move 15.28%. The butterfly on DIG 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 DIG specifically: DIG IV at 53.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 15.28% (roughly $9.39 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 DIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on DIG should anchor to the underlying notional of $61.48 per share and to the trader's directional view on DIG etf.
DIG butterfly setup
The DIG 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 DIG near $61.48, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DIG 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 DIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $60.00 | $4.65 |
| Sell 2 | Call | $60.00 | $4.65 |
| Buy 1 | Call | $65.00 | $1.93 |
DIG butterfly risk and reward
- Net Premium / Debit
- +$272.50
- Max Profit (per contract)
- $272.50
- Max Loss (per contract)
- -$227.50
- Breakeven(s)
- $62.73
- Risk / Reward Ratio
- 1.198
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.
DIG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DIG. 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% | +$272.50 |
| $13.60 | -77.9% | +$272.50 |
| $27.19 | -55.8% | +$272.50 |
| $40.79 | -33.7% | +$272.50 |
| $54.38 | -11.5% | +$272.50 |
| $67.97 | +10.6% | -$227.50 |
| $81.56 | +32.7% | -$227.50 |
| $95.16 | +54.8% | -$227.50 |
| $108.75 | +76.9% | -$227.50 |
| $122.34 | +99.0% | -$227.50 |
When traders use butterfly on DIG
Butterflies on DIG are pinning bets - traders use them when they expect DIG 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.
DIG thesis for this butterfly
The market-implied 1-standard-deviation range for DIG extends from approximately $52.09 on the downside to $70.87 on the upside. A DIG long call butterfly is a pinning play: it pays maximum at the middle strike if DIG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DIG IV rank near 58.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on DIG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DIG-specific events.
DIG 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. DIG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DIG alongside the broader basket even when DIG-specific fundamentals are unchanged. Always rebuild the position from current DIG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DIG?
- A butterfly on DIG is the butterfly strategy applied to DIG (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 DIG etf trading near $61.48, the strikes shown on this page are snapped to the nearest listed DIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DIG 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 DIG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 53.30%), the computed maximum profit is $272.50 per contract and the computed maximum loss is -$227.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DIG butterfly?
- The breakeven for the DIG butterfly priced on this page is roughly $62.73 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 DIG market-implied 1-standard-deviation expected move is approximately 15.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DIG?
- Butterflies on DIG are pinning bets - traders use them when they expect DIG 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 DIG implied volatility affect this butterfly?
- DIG ATM IV is at 53.30% with IV rank near 58.70%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.