MULL Butterfly Strategy
MULL (GraniteShares 2x Long MU Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The GraniteShares 2x Long MU Daily ETF (MULL) is designed to achieve investment returns, before accounting for its fees and expenses, that are double (200%) the daily percentage change of Micron Technology Inc.'s common stock (NASDAQ: MU). It's important to note that there's no assurance the fund will consistently meet this daily target. Investors should also be aware that, due to the impact of compounding, this fund should not be anticipated to deliver two times the cumulative return of MU over timeframes longer than a single trading day.
MULL (GraniteShares 2x Long MU Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $212.6M, a beta of 9.68 versus the broader market, a 52-week range of 0.5872-43.5264, average daily share volume of 450K, a public-listing history dating back to 2024. These structural characteristics shape how MULL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 9.68 indicates MULL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MULL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MULL?
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 MULL snapshot
As of June 30, 2026, spot at $37.48, ATM IV 187.80%, IV rank 71.98%, expected move 53.84%. The butterfly on MULL 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 17-day expiry.
Why this butterfly structure on MULL specifically: MULL IV at 187.80% is rich versus its 1-year range, which makes a premium-buying MULL butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 53.84% (roughly $20.18 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MULL expiries trade a higher absolute premium for lower per-day decay. Position sizing on MULL should anchor to the underlying notional of $37.48 per share and to the trader's directional view on MULL etf.
MULL butterfly setup
The MULL 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 MULL near $37.48, the first option leg uses a $35.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MULL chain at a 17-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 MULL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.60 | $6.20 |
| Sell 2 | Call | $37.40 | $5.15 |
| Buy 1 | Call | $39.40 | $4.65 |
MULL butterfly risk and reward
- Net Premium / Debit
- -$55.00
- Max Profit (per contract)
- $114.67
- Max Loss (per contract)
- -$75.00
- Breakeven(s)
- $36.15, $38.65
- Risk / Reward Ratio
- 1.529
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.
MULL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MULL. 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% | -$55.00 |
| $8.30 | -77.9% | -$55.00 |
| $16.58 | -55.8% | -$55.00 |
| $24.87 | -33.7% | -$55.00 |
| $33.15 | -11.5% | -$55.00 |
| $41.44 | +10.6% | -$75.00 |
| $49.73 | +32.7% | -$75.00 |
| $58.01 | +54.8% | -$75.00 |
| $66.30 | +76.9% | -$75.00 |
| $74.58 | +99.0% | -$75.00 |
When traders use butterfly on MULL
Butterflies on MULL are pinning bets - traders use them when they expect MULL 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.
MULL thesis for this butterfly
The market-implied 1-standard-deviation range for MULL extends from approximately $17.30 on the downside to $57.66 on the upside. A MULL long call butterfly is a pinning play: it pays maximum at the middle strike if MULL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MULL IV rank near 71.98% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MULL at 187.80%. As a Financial Services name, MULL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MULL-specific events.
MULL 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. MULL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MULL alongside the broader basket even when MULL-specific fundamentals are unchanged. Always rebuild the position from current MULL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MULL?
- A butterfly on MULL is the butterfly strategy applied to MULL (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 MULL etf trading near $37.48, the strikes shown on this page are snapped to the nearest listed MULL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MULL 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 MULL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 187.80%), the computed maximum profit is $114.67 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MULL butterfly?
- The breakeven for the MULL butterfly priced on this page is roughly $36.15 and $38.65 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 MULL market-implied 1-standard-deviation expected move is approximately 53.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MULL?
- Butterflies on MULL are pinning bets - traders use them when they expect MULL 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 MULL implied volatility affect this butterfly?
- MULL ATM IV is at 187.80% with IV rank near 71.98%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.