FLYT Butterfly Strategy
FLYT (Direxion Flight to Safety Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund, under normal circumstances, invests at least 80% of its assets in the securities that comprise the index. The index measures the performance of a volatility-weighted basket of gold, U.S. listed large-capitalization utility stocks, and U.S. treasury bonds with remaining maturities of greater than 20 years. It is non-diversified.
FLYT (Direxion Flight to Safety Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.0M, a beta of 0.00 versus the broader market, a 52-week range of 45.96-51.38, average daily share volume of 1K, a public-listing history dating back to 2020. These structural characteristics shape how FLYT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates FLYT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on FLYT?
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 FLYT snapshot
As of May 15, 2026, spot at $26.86, ATM IV 215.00%, expected move 61.64%. The butterfly on FLYT 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 FLYT specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FLYT is inferred from ATM IV at 215.00% alone, with a market-implied 1-standard-deviation move of approximately 61.64% (roughly $16.56 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 FLYT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLYT should anchor to the underlying notional of $26.86 per share and to the trader's directional view on FLYT etf.
FLYT butterfly setup
The FLYT 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 FLYT near $26.86, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLYT 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 FLYT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.00 | $7.20 |
| Sell 2 | Call | $27.00 | $6.80 |
| Buy 1 | Call | $28.00 | $6.40 |
FLYT butterfly risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $99.99
- Max Loss (per contract)
- -$0.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 879,565,100,748,328.100
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.
FLYT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FLYT. 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% | $0.00 |
| $5.95 | -77.9% | $0.00 |
| $11.89 | -55.7% | $0.00 |
| $17.82 | -33.6% | $0.00 |
| $23.76 | -11.5% | $0.00 |
| $29.70 | +10.6% | -$0.00 |
| $35.64 | +32.7% | $0.00 |
| $41.57 | +54.8% | $0.00 |
| $47.51 | +76.9% | +$0.00 |
| $53.45 | +99.0% | $0.00 |
When traders use butterfly on FLYT
Butterflies on FLYT are pinning bets - traders use them when they expect FLYT 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.
FLYT thesis for this butterfly
The market-implied 1-standard-deviation range for FLYT extends from approximately $10.30 on the downside to $43.42 on the upside. A FLYT long call butterfly is a pinning play: it pays maximum at the middle strike if FLYT 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, FLYT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLYT-specific events.
FLYT 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. FLYT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLYT alongside the broader basket even when FLYT-specific fundamentals are unchanged. Always rebuild the position from current FLYT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FLYT?
- A butterfly on FLYT is the butterfly strategy applied to FLYT (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 FLYT etf trading near $26.86, the strikes shown on this page are snapped to the nearest listed FLYT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLYT 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 FLYT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 215.00%), the computed maximum profit is $99.99 per contract and the computed maximum loss is -$0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLYT butterfly?
- The breakeven for the FLYT butterfly priced on this page is no defined breakeven on the modeled curve 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 FLYT market-implied 1-standard-deviation expected move is approximately 61.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FLYT?
- Butterflies on FLYT are pinning bets - traders use them when they expect FLYT 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 FLYT implied volatility affect this butterfly?
- Current FLYT ATM IV is 215.00%; IV rank context is unavailable in the current snapshot.