LLYX Butterfly Strategy
LLYX (Daily Target 2X Long LLY ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively managed exchange traded fund (“ETF”) that attempts to achieve two times (200%) the daily percentage change in the share price of the Underlying Security by employing derivatives, namely swap agreements and/or listed options contracts. The fund is non-diversified.
LLYX (Daily Target 2X Long LLY ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $97.2M, a beta of 0.18 versus the broader market, a 52-week range of 9.6-28.44, average daily share volume of 434K, a public-listing history dating back to 2024. These structural characteristics shape how LLYX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.18 indicates LLYX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LLYX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on LLYX?
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 LLYX snapshot
As of May 14, 2026, spot at $20.05, ATM IV 67.30%, IV rank 28.97%, expected move 19.29%. The butterfly on LLYX 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 LLYX specifically: LLYX IV at 67.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a LLYX butterfly, with a market-implied 1-standard-deviation move of approximately 19.29% (roughly $3.87 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 LLYX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LLYX should anchor to the underlying notional of $20.05 per share and to the trader's directional view on LLYX etf.
LLYX butterfly setup
The LLYX 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 LLYX near $20.05, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LLYX 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 LLYX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $19.00 | $2.20 |
| Sell 2 | Call | $20.00 | $1.53 |
| Buy 1 | Call | $21.00 | $1.13 |
LLYX butterfly risk and reward
- Net Premium / Debit
- -$27.50
- Max Profit (per contract)
- $67.93
- Max Loss (per contract)
- -$27.50
- Breakeven(s)
- $19.28, $20.73
- Risk / Reward Ratio
- 2.470
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.
LLYX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on LLYX. 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% | -$27.50 |
| $4.44 | -77.8% | -$27.50 |
| $8.87 | -55.7% | -$27.50 |
| $13.31 | -33.6% | -$27.50 |
| $17.74 | -11.5% | -$27.50 |
| $22.17 | +10.6% | -$27.50 |
| $26.60 | +32.7% | -$27.50 |
| $31.03 | +54.8% | -$27.50 |
| $35.47 | +76.9% | -$27.50 |
| $39.90 | +99.0% | -$27.50 |
When traders use butterfly on LLYX
Butterflies on LLYX are pinning bets - traders use them when they expect LLYX 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.
LLYX thesis for this butterfly
The market-implied 1-standard-deviation range for LLYX extends from approximately $16.18 on the downside to $23.92 on the upside. A LLYX long call butterfly is a pinning play: it pays maximum at the middle strike if LLYX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current LLYX IV rank near 28.97% 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 LLYX at 67.30%. As a Financial Services name, LLYX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LLYX-specific events.
LLYX 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. LLYX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LLYX alongside the broader basket even when LLYX-specific fundamentals are unchanged. Always rebuild the position from current LLYX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on LLYX?
- A butterfly on LLYX is the butterfly strategy applied to LLYX (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 LLYX etf trading near $20.05, the strikes shown on this page are snapped to the nearest listed LLYX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LLYX 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 LLYX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 67.30%), the computed maximum profit is $67.93 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LLYX butterfly?
- The breakeven for the LLYX butterfly priced on this page is roughly $19.28 and $20.73 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 LLYX market-implied 1-standard-deviation expected move is approximately 19.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on LLYX?
- Butterflies on LLYX are pinning bets - traders use them when they expect LLYX 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 LLYX implied volatility affect this butterfly?
- LLYX ATM IV is at 67.30% with IV rank near 28.97%, 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.