FLOW Butterfly Strategy
FLOW (Global X U.S. Cash Flow Kings 100 ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
FLOW provides exposure to companies that generate a high level of free cash flow, an indicator of profitability. The fund maintains a portfolio of large- and mid-sized US companies selected based on their trailing 12-month free cash flow yield. Initially, the fund considers the top 1,000 US companies by market-cap. Companies exhibiting negative free cash flow yield over the past 12 months and firms operating in the financial sector are excluded. Among the remaining eligible securities, the fund selects the top 100 based on their free cash flow yield over the preceding 12-month period and weights the resulting portfolio using the same metric. For portfolio diversification, individual securities are capped at 2%, with a maximum allocation of 25% to those belonging to one sector.
FLOW (Global X U.S. Cash Flow Kings 100 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $37.1M, a beta of 0.70 versus the broader market, a 52-week range of 33.29-46.67, average daily share volume of 5K, a public-listing history dating back to 2023, approximately 4K full-time employees. These structural characteristics shape how FLOW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 indicates FLOW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FLOW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FLOW?
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.
FLOW snapshot
As of November 13, 2026, spot at $46.35. The butterfly on FLOW below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this butterfly structure on FLOW specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FLOW is inferred from ATM IV alone. The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLOW expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLOW should anchor to the underlying notional of $46.35 per share and to the trader's directional view on FLOW etf.
FLOW butterfly setup
The FLOW butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FLOW at $46.35 on that close, the first option leg uses a $44.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLOW chain at a 7-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 FLOW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $44.00 | $1.83 |
| Sell 2 | Call | $46.00 | $1.52 |
| Buy 1 | Call | $49.00 | $0.43 |
FLOW butterfly risk and reward
- Net Premium / Debit
- +$78.50
- Max Profit (per contract)
- $266.29
- Max Loss (per contract)
- -$21.50
- Breakeven(s)
- $48.79
- Risk / Reward Ratio
- 12.386
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.
FLOW butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FLOW. 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% | +$78.50 |
| $10.26 | -77.9% | +$78.50 |
| $20.50 | -55.8% | +$78.50 |
| $30.75 | -33.7% | +$78.50 |
| $41.00 | -11.5% | +$78.50 |
| $51.25 | +10.6% | -$21.50 |
| $61.49 | +32.7% | -$21.50 |
| $71.74 | +54.8% | -$21.50 |
| $81.99 | +76.9% | -$21.50 |
| $92.23 | +99.0% | -$21.50 |
When traders use butterfly on FLOW
Butterflies on FLOW are pinning bets - traders use them when they expect FLOW 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.
FLOW thesis for this butterfly
A FLOW long call butterfly is a pinning play: it pays maximum at the middle strike if FLOW 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, FLOW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLOW-specific events.
FLOW 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. FLOW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLOW alongside the broader basket even when FLOW-specific fundamentals are unchanged. Always rebuild the position from current FLOW chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FLOW?
- A butterfly on FLOW is the butterfly strategy applied to FLOW (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 FLOW etf at $46.35 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed FLOW chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FLOW 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 FLOW butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $266.29 per contract and the computed maximum loss is -$21.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLOW butterfly?
- The breakeven for the FLOW butterfly priced on this page is roughly $48.79 at expiration, derived from the November 13, 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.
- When should you consider a butterfly on FLOW?
- Butterflies on FLOW are pinning bets - traders use them when they expect FLOW 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 FLOW implied volatility affect this butterfly?
- Current FLOW ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.