NBIG Butterfly Strategy
NBIG (Leverage Shares 2x Long NBIS Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The NBIG, or Leverage Shares 2x Long NBIS Daily ETF, is a daily-resetting, 2x leveraged bull exchange-traded fund. Its primary objective is to appeal to sophisticated investors or active traders who aim to amplify their returns over very brief periods. Specifically, this ETF endeavours to deliver twice (200%) the positive daily movement of the underlying NBIS stock, before accounting for associated management fees and operational expenses.
NBIG (Leverage Shares 2x Long NBIS Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $26.0M, a beta of 8.00 versus the broader market, a 52-week range of 4.51-47.81, average daily share volume of 1.6M, a public-listing history dating back to 2025. These structural characteristics shape how NBIG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 8.00 indicates NBIG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on NBIG?
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.
NBIG snapshot
As of August 14, 2026, spot at $26.55, ATM IV 194.50%, IV rank 28.95%, expected move 55.76%. The butterfly on NBIG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on NBIG specifically: NBIG IV at 194.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a NBIG butterfly, with a market-implied 1-standard-deviation move of approximately 55.76% (roughly $14.80 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NBIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NBIG should anchor to the underlying notional of $26.55 per share and to the trader's directional view on NBIG etf.
NBIG butterfly setup
The NBIG butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NBIG at $26.55 on that close, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NBIG chain at a 35-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 NBIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.00 | $6.80 |
| Sell 2 | Call | $27.00 | $5.95 |
| Buy 1 | Call | $28.00 | $5.65 |
NBIG butterfly risk and reward
- Net Premium / Debit
- -$55.00
- Max Profit (per contract)
- $140.52
- Max Loss (per contract)
- -$55.00
- Breakeven(s)
- $25.55
- Risk / Reward Ratio
- 2.555
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.
NBIG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NBIG. 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 |
| $5.88 | -77.9% | -$55.00 |
| $11.75 | -55.7% | -$55.00 |
| $17.62 | -33.6% | -$55.00 |
| $23.49 | -11.5% | -$55.00 |
| $29.36 | +10.6% | +$45.00 |
| $35.23 | +32.7% | +$45.00 |
| $41.09 | +54.8% | +$45.00 |
| $46.96 | +76.9% | +$45.00 |
| $52.83 | +99.0% | +$45.00 |
When traders use butterfly on NBIG
Butterflies on NBIG are pinning bets - traders use them when they expect NBIG 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.
NBIG thesis for this butterfly
The market-implied 1-standard-deviation range for NBIG extends from approximately $11.75 on the downside to $41.35 on the upside. A NBIG long call butterfly is a pinning play: it pays maximum at the middle strike if NBIG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NBIG IV rank near 28.95% 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 NBIG at 194.50%. As a Financial Services name, NBIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NBIG-specific events.
NBIG 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. NBIG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NBIG alongside the broader basket even when NBIG-specific fundamentals are unchanged. Always rebuild the position from current NBIG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NBIG?
- A butterfly on NBIG is the butterfly strategy applied to NBIG (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 NBIG etf at $26.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NBIG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NBIG 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 NBIG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 194.50%), the computed maximum profit is $140.52 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NBIG butterfly?
- The breakeven for the NBIG butterfly priced on this page is roughly $25.55 at expiration, derived from the August 14, 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. The NBIG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 55.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NBIG?
- Butterflies on NBIG are pinning bets - traders use them when they expect NBIG 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 NBIG implied volatility affect this butterfly?
- NBIG ATM IV is at 194.50% with IV rank near 28.95%, 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.