FBL Butterfly Strategy
FBL (GraniteShares 2x Long META Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the common stock of Meta Platforms Inc, (NASDAQ: META) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide 2 times the cumulative return of META for periods greater than a day.
FBL (GraniteShares 2x Long META Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $90.6M, a beta of 2.94 versus the broader market, a 52-week range of 19.075-51.715, average daily share volume of 1.3M, a public-listing history dating back to 2022. These structural characteristics shape how FBL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.94 indicates FBL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FBL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FBL?
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 FBL snapshot
As of May 15, 2026, spot at $25.69, ATM IV 64.20%, IV rank 32.60%, expected move 18.41%. The butterfly on FBL 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 FBL specifically: FBL IV at 64.20% 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 18.41% (roughly $4.73 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 FBL expiries trade a higher absolute premium for lower per-day decay. Position sizing on FBL should anchor to the underlying notional of $25.69 per share and to the trader's directional view on FBL etf.
FBL butterfly setup
The FBL 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 FBL near $25.69, the first option leg uses a $24.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FBL 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 FBL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.33 | $2.88 |
| Sell 2 | Call | $25.33 | $2.23 |
| Buy 1 | Call | $27.33 | $1.38 |
FBL butterfly risk and reward
- Net Premium / Debit
- +$20.00
- Max Profit (per contract)
- $117.78
- Max Loss (per contract)
- -$80.00
- Breakeven(s)
- $26.53
- Risk / Reward Ratio
- 1.472
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.
FBL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FBL. 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% | +$20.00 |
| $5.69 | -77.9% | +$20.00 |
| $11.37 | -55.7% | +$20.00 |
| $17.05 | -33.6% | +$20.00 |
| $22.73 | -11.5% | +$20.00 |
| $28.41 | +10.6% | -$80.00 |
| $34.08 | +32.7% | -$80.00 |
| $39.76 | +54.8% | -$80.00 |
| $45.44 | +76.9% | -$80.00 |
| $51.12 | +99.0% | -$80.00 |
When traders use butterfly on FBL
Butterflies on FBL are pinning bets - traders use them when they expect FBL 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.
FBL thesis for this butterfly
The market-implied 1-standard-deviation range for FBL extends from approximately $20.96 on the downside to $30.42 on the upside. A FBL long call butterfly is a pinning play: it pays maximum at the middle strike if FBL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FBL IV rank near 32.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FBL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FBL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FBL-specific events.
FBL 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. FBL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FBL alongside the broader basket even when FBL-specific fundamentals are unchanged. Always rebuild the position from current FBL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FBL?
- A butterfly on FBL is the butterfly strategy applied to FBL (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 FBL etf trading near $25.69, the strikes shown on this page are snapped to the nearest listed FBL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FBL 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 FBL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 64.20%), the computed maximum profit is $117.78 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FBL butterfly?
- The breakeven for the FBL butterfly priced on this page is roughly $26.53 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 FBL market-implied 1-standard-deviation expected move is approximately 18.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FBL?
- Butterflies on FBL are pinning bets - traders use them when they expect FBL 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 FBL implied volatility affect this butterfly?
- FBL ATM IV is at 64.20% with IV rank near 32.60%, 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.