NFLW Butterfly Strategy
NFLW (Roundhill Investments - NFLX WeeklyPay ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
The Roundhill NFLX WeeklyPay ETF (“NFLW”) is designed for investors seeking a combination of income and growth potential. NFLW aims to provide weekly distributions and calendar week returns, before fees and expenses, equal to 1.2 times (120%) the calendar week total return of Netflix common shares (Nasdaq: NFLX). NFLW is an actively-managed ETF.
NFLW (Roundhill Investments - NFLX WeeklyPay ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $9.3M, a beta of -0.40 versus the broader market, a 52-week range of 20.09-55.24, average daily share volume of 65K, a public-listing history dating back to 2025. These structural characteristics shape how NFLW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.40 indicates NFLW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NFLW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NFLW?
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 NFLW snapshot
As of May 15, 2026, spot at $21.52, ATM IV 25.30%, IV rank 0.00%, expected move 7.25%. The butterfly on NFLW 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 NFLW specifically: NFLW IV at 25.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a NFLW butterfly, with a market-implied 1-standard-deviation move of approximately 7.25% (roughly $1.56 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 NFLW expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFLW should anchor to the underlying notional of $21.52 per share and to the trader's directional view on NFLW etf.
NFLW butterfly setup
The NFLW 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 NFLW near $21.52, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFLW 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 NFLW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.00 | $1.88 |
| Sell 2 | Call | $22.00 | $1.14 |
| Buy 1 | Call | $23.00 | $0.78 |
NFLW butterfly risk and reward
- Net Premium / Debit
- -$37.50
- Max Profit (per contract)
- $155.94
- Max Loss (per contract)
- -$37.50
- Breakeven(s)
- $20.38
- Risk / Reward Ratio
- 4.158
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.
NFLW butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NFLW. 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% | -$37.50 |
| $4.77 | -77.8% | -$37.50 |
| $9.52 | -55.7% | -$37.50 |
| $14.28 | -33.6% | -$37.50 |
| $19.04 | -11.5% | -$37.50 |
| $23.80 | +10.6% | +$62.50 |
| $28.55 | +32.7% | +$62.50 |
| $33.31 | +54.8% | +$62.50 |
| $38.07 | +76.9% | +$62.50 |
| $42.82 | +99.0% | +$62.50 |
When traders use butterfly on NFLW
Butterflies on NFLW are pinning bets - traders use them when they expect NFLW 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.
NFLW thesis for this butterfly
The market-implied 1-standard-deviation range for NFLW extends from approximately $19.96 on the downside to $23.08 on the upside. A NFLW long call butterfly is a pinning play: it pays maximum at the middle strike if NFLW settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NFLW IV rank near 0.00% 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 NFLW at 25.30%. As a Financial Services name, NFLW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFLW-specific events.
NFLW 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. NFLW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFLW alongside the broader basket even when NFLW-specific fundamentals are unchanged. Always rebuild the position from current NFLW chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NFLW?
- A butterfly on NFLW is the butterfly strategy applied to NFLW (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 NFLW etf trading near $21.52, the strikes shown on this page are snapped to the nearest listed NFLW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFLW 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 NFLW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.30%), the computed maximum profit is $155.94 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NFLW butterfly?
- The breakeven for the NFLW butterfly priced on this page is roughly $20.38 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 NFLW market-implied 1-standard-deviation expected move is approximately 7.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NFLW?
- Butterflies on NFLW are pinning bets - traders use them when they expect NFLW 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 NFLW implied volatility affect this butterfly?
- NFLW ATM IV is at 25.30% with IV rank near 0.00%, 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.