NFLU Butterfly Strategy
NFLU (T-REX 2X Long NFLX Daily Target ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
This fund primarily aims to provide investors with returns that are double the daily movement of NFLX. It achieves this by typically committing at least 80% of its overall assets (including funds acquired through borrowing) to swap agreements that mirror this leveraged daily exposure. The fund also has the flexibility to pursue its investment objective by directly purchasing NFLX common stock or by acquiring call options on NFLX. It is important to note that this fund operates on a non-diversified basis.
NFLU (T-REX 2X Long NFLX Daily Target ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $7.5M, a beta of 0.36 versus the broader market, a 52-week range of 16.33-74.49, average daily share volume of 191K, a public-listing history dating back to 2024. These structural characteristics shape how NFLU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.36 indicates NFLU 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 NFLU?
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 NFLU snapshot
As of June 29, 2026, spot at $17.67, ATM IV 106.00%, IV rank 83.80%, expected move 30.39%. The butterfly on NFLU 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 18-day expiry.
Why this butterfly structure on NFLU specifically: NFLU IV at 106.00% is rich versus its 1-year range, which makes a premium-buying NFLU butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 30.39% (roughly $5.37 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NFLU expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFLU should anchor to the underlying notional of $17.67 per share and to the trader's directional view on NFLU etf.
NFLU butterfly setup
The NFLU 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 NFLU near $17.67, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFLU chain at a 18-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 NFLU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.00 | $2.08 |
| Sell 2 | Call | $18.00 | $1.70 |
| Buy 1 | Call | $19.00 | $1.18 |
NFLU butterfly risk and reward
- Net Premium / Debit
- +$15.00
- Max Profit (per contract)
- $109.13
- Max Loss (per contract)
- $15.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 7.275
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.
NFLU butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NFLU. 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% | +$15.00 |
| $3.92 | -77.8% | +$15.00 |
| $7.82 | -55.7% | +$15.00 |
| $11.73 | -33.6% | +$15.00 |
| $15.63 | -11.5% | +$15.00 |
| $19.54 | +10.6% | +$15.00 |
| $23.44 | +32.7% | +$15.00 |
| $27.35 | +54.8% | +$15.00 |
| $31.26 | +76.9% | +$15.00 |
| $35.16 | +99.0% | +$15.00 |
When traders use butterfly on NFLU
Butterflies on NFLU are pinning bets - traders use them when they expect NFLU 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.
NFLU thesis for this butterfly
The market-implied 1-standard-deviation range for NFLU extends from approximately $12.30 on the downside to $23.04 on the upside. A NFLU long call butterfly is a pinning play: it pays maximum at the middle strike if NFLU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NFLU IV rank near 83.80% 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 NFLU at 106.00%. As a Financial Services name, NFLU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFLU-specific events.
NFLU 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. NFLU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFLU alongside the broader basket even when NFLU-specific fundamentals are unchanged. Always rebuild the position from current NFLU chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NFLU?
- A butterfly on NFLU is the butterfly strategy applied to NFLU (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 NFLU etf trading near $17.67, the strikes shown on this page are snapped to the nearest listed NFLU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFLU 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 NFLU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 106.00%), the computed maximum profit is $109.13 per contract and the computed maximum loss is $15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NFLU butterfly?
- The breakeven for the NFLU 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 NFLU market-implied 1-standard-deviation expected move is approximately 30.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NFLU?
- Butterflies on NFLU are pinning bets - traders use them when they expect NFLU 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 NFLU implied volatility affect this butterfly?
- NFLU ATM IV is at 106.00% with IV rank near 83.80%, 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.