NVD Butterfly Strategy
NVD (GraniteShares 2x Short NVDA Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund seeks daily investment results, before fees and expenses, of -2 times (-200%) the daily percentage change of the common stock of NVIDIA Corp, (NASDAQ: NVDA) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide -2 times the cumulative return of NVDA for periods greater than a day.
NVD (GraniteShares 2x Short NVDA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $79.1M, a beta of -3.06 versus the broader market, a 52-week range of 4.25-19.2, average daily share volume of 85.2M, a public-listing history dating back to 2023. These structural characteristics shape how NVD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -3.06 indicates NVD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NVD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NVD?
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 NVD snapshot
As of May 15, 2026, spot at $4.25, ATM IV 110.90%, IV rank 49.31%, expected move 31.79%. The butterfly on NVD 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 245-day expiry.
Why this butterfly structure on NVD specifically: NVD IV at 110.90% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 31.79% (roughly $1.35 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVD expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVD should anchor to the underlying notional of $4.25 per share and to the trader's directional view on NVD etf.
NVD butterfly setup
The NVD 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 NVD near $4.25, the first option leg uses a $4.04 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVD chain at a 245-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 NVD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.04 | N/A |
| Sell 2 | Call | $4.25 | N/A |
| Buy 1 | Call | $4.46 | N/A |
NVD butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
NVD butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NVD. 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.
When traders use butterfly on NVD
Butterflies on NVD are pinning bets - traders use them when they expect NVD 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.
NVD thesis for this butterfly
The market-implied 1-standard-deviation range for NVD extends from approximately $2.90 on the downside to $5.60 on the upside. A NVD long call butterfly is a pinning play: it pays maximum at the middle strike if NVD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NVD IV rank near 49.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NVD should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NVD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVD-specific events.
NVD 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. NVD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVD alongside the broader basket even when NVD-specific fundamentals are unchanged. Always rebuild the position from current NVD chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NVD?
- A butterfly on NVD is the butterfly strategy applied to NVD (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 NVD etf trading near $4.25, the strikes shown on this page are snapped to the nearest listed NVD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVD 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 NVD butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 110.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVD butterfly?
- The breakeven for the NVD 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 NVD market-implied 1-standard-deviation expected move is approximately 31.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NVD?
- Butterflies on NVD are pinning bets - traders use them when they expect NVD 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 NVD implied volatility affect this butterfly?
- NVD ATM IV is at 110.90% with IV rank near 49.31%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.