NFLP Butterfly Strategy
NFLP (Kurv Yield Premium Strategy Netflix (NFLX) ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
The Kurv Yield Premium Strategy Netflix (NFLX) ETF primarily endeavors to deliver consistent income. Concurrently, it offers market participation in the share price movements of Netflix, Inc., albeit with an inherent ceiling on potential capital appreciation.
NFLP (Kurv Yield Premium Strategy Netflix (NFLX) ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $4.4M, a beta of 0.55 versus the broader market, a 52-week range of 15.78-37.15, average daily share volume of 4K, a public-listing history dating back to 2023. These structural characteristics shape how NFLP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.55 indicates NFLP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NFLP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NFLP?
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.
NFLP snapshot
As of September 30, 2026, spot at $16.20, ATM IV 458.40%, IV rank 93.45%, expected move 131.42%. The butterfly on NFLP below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.
Why this butterfly structure on NFLP specifically: NFLP IV at 458.40% is rich versus its 1-year range, which makes a premium-buying NFLP butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 131.42% (roughly $21.29 on the underlying). The 16-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NFLP expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFLP should anchor to the underlying notional of $16.20 per share and to the trader's directional view on NFLP etf.
NFLP butterfly setup
The NFLP butterfly below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NFLP at $16.20 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFLP chain at a 16-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 NFLP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.00 | $1.38 |
| Sell 2 | Call | $16.00 | $0.77 |
| Buy 1 | Call | $17.00 | $0.35 |
NFLP butterfly risk and reward
- Net Premium / Debit
- -$18.50
- Max Profit (per contract)
- $77.59
- Max Loss (per contract)
- -$18.50
- Breakeven(s)
- $15.19, $16.82
- Risk / Reward Ratio
- 4.194
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.
NFLP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NFLP. 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 | -99.9% | -$18.50 |
| $3.59 | -77.8% | -$18.50 |
| $7.17 | -55.7% | -$18.50 |
| $10.75 | -33.6% | -$18.50 |
| $14.33 | -11.5% | -$18.50 |
| $17.91 | +10.6% | -$18.50 |
| $21.49 | +32.7% | -$18.50 |
| $25.08 | +54.8% | -$18.50 |
| $28.66 | +76.9% | -$18.50 |
| $32.24 | +99.0% | -$18.50 |
When traders use butterfly on NFLP
Butterflies on NFLP are pinning bets - traders use them when they expect NFLP 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.
NFLP thesis for this butterfly
The market-implied 1-standard-deviation range for NFLP extends from approximately $-5.09 on the downside to $37.49 on the upside. A NFLP long call butterfly is a pinning play: it pays maximum at the middle strike if NFLP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NFLP IV rank near 93.45% 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 NFLP at 458.40%. As a Financial Services name, NFLP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFLP-specific events.
NFLP 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. NFLP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFLP alongside the broader basket even when NFLP-specific fundamentals are unchanged. Always rebuild the position from current NFLP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NFLP?
- A butterfly on NFLP is the butterfly strategy applied to NFLP (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 NFLP etf at $16.20 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed NFLP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NFLP 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 NFLP butterfly priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 458.40%), the computed maximum profit is $77.59 per contract and the computed maximum loss is -$18.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NFLP butterfly?
- The breakeven for the NFLP butterfly priced on this page is roughly $15.19 and $16.82 at expiration, derived from the September 30, 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 NFLP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 131.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NFLP?
- Butterflies on NFLP are pinning bets - traders use them when they expect NFLP 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 NFLP implied volatility affect this butterfly?
- NFLP ATM IV is at 458.40% with IV rank near 93.45%, 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.