DUSL Butterfly Strategy
DUSL (Direxion Daily Industrials Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Industrials Bull 3X ETF aims to provide daily investment outcomes reflecting 300% of the Industrials Select Sector Index's performance, excluding fees and expenses. It's crucial to understand that the fund's specific investment goal is not guaranteed to be met.
DUSL (Direxion Daily Industrials Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $52.8M, a beta of 2.82 versus the broader market, a 52-week range of 64.943-106.88, average daily share volume of 19K, a public-listing history dating back to 2017. These structural characteristics shape how DUSL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.82 indicates DUSL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. DUSL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DUSL?
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.
DUSL snapshot
As of August 14, 2026, spot at $104.36, ATM IV 51.30%, IV rank 22.47%, expected move 14.71%. The butterfly on DUSL 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 DUSL specifically: DUSL IV at 51.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a DUSL butterfly, with a market-implied 1-standard-deviation move of approximately 14.71% (roughly $15.35 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 DUSL expiries trade a higher absolute premium for lower per-day decay. Position sizing on DUSL should anchor to the underlying notional of $104.36 per share and to the trader's directional view on DUSL etf.
DUSL butterfly setup
The DUSL 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 DUSL at $104.36 on that close, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DUSL 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 DUSL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $100.00 | $9.25 |
| Sell 2 | Call | $105.00 | $6.55 |
| Buy 1 | Call | $110.00 | $4.43 |
DUSL butterfly risk and reward
- Net Premium / Debit
- -$57.50
- Max Profit (per contract)
- $431.44
- Max Loss (per contract)
- -$57.50
- Breakeven(s)
- $100.51, $109.47
- Risk / Reward Ratio
- 7.503
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.
DUSL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DUSL. 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% | -$57.50 |
| $23.08 | -77.9% | -$57.50 |
| $46.16 | -55.8% | -$57.50 |
| $69.23 | -33.7% | -$57.50 |
| $92.30 | -11.6% | -$57.50 |
| $115.38 | +10.6% | -$57.50 |
| $138.45 | +32.7% | -$57.50 |
| $161.52 | +54.8% | -$57.50 |
| $184.60 | +76.9% | -$57.50 |
| $207.67 | +99.0% | -$57.50 |
When traders use butterfly on DUSL
Butterflies on DUSL are pinning bets - traders use them when they expect DUSL 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.
DUSL thesis for this butterfly
The market-implied 1-standard-deviation range for DUSL extends from approximately $89.01 on the downside to $119.71 on the upside. A DUSL long call butterfly is a pinning play: it pays maximum at the middle strike if DUSL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DUSL IV rank near 22.47% 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 DUSL at 51.30%. As a Financial Services name, DUSL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DUSL-specific events.
DUSL 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. DUSL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DUSL alongside the broader basket even when DUSL-specific fundamentals are unchanged. Always rebuild the position from current DUSL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DUSL?
- A butterfly on DUSL is the butterfly strategy applied to DUSL (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 DUSL etf at $104.36 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DUSL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DUSL 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 DUSL butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.30%), the computed maximum profit is $431.44 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DUSL butterfly?
- The breakeven for the DUSL butterfly priced on this page is roughly $100.51 and $109.47 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 DUSL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DUSL?
- Butterflies on DUSL are pinning bets - traders use them when they expect DUSL 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 DUSL implied volatility affect this butterfly?
- DUSL ATM IV is at 51.30% with IV rank near 22.47%, 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.