NVDL Butterfly Strategy
NVDL (GraniteShares 2x Long 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.
NVDL (GraniteShares 2x Long NVDA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.01B, a beta of 3.62 versus the broader market, a 52-week range of 48.08-120.61, average daily share volume of 9.1M, a public-listing history dating back to 2022. These structural characteristics shape how NVDL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.62 indicates NVDL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NVDL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on NVDL?
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 NVDL snapshot
As of May 15, 2026, spot at $119.27, ATM IV 94.74%, IV rank 72.22%, expected move 27.16%. The butterfly on NVDL 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 28-day expiry.
Why this butterfly structure on NVDL specifically: NVDL IV at 94.74% is rich versus its 1-year range, which makes a premium-buying NVDL butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 27.16% (roughly $32.40 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDL should anchor to the underlying notional of $119.27 per share and to the trader's directional view on NVDL etf.
NVDL butterfly setup
The NVDL 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 NVDL near $119.27, the first option leg uses a $113.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVDL chain at a 28-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 NVDL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $113.00 | $16.00 |
| Sell 2 | Call | $119.00 | $13.43 |
| Buy 1 | Call | $125.00 | $10.83 |
NVDL butterfly risk and reward
- Net Premium / Debit
- +$2.50
- Max Profit (per contract)
- $570.07
- Max Loss (per contract)
- $2.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 228.027
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.
NVDL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on NVDL. 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% | +$2.50 |
| $26.38 | -77.9% | +$2.50 |
| $52.75 | -55.8% | +$2.50 |
| $79.12 | -33.7% | +$2.50 |
| $105.49 | -11.6% | +$2.50 |
| $131.86 | +10.6% | +$2.50 |
| $158.23 | +32.7% | +$2.50 |
| $184.60 | +54.8% | +$2.50 |
| $210.97 | +76.9% | +$2.50 |
| $237.34 | +99.0% | +$2.50 |
When traders use butterfly on NVDL
Butterflies on NVDL are pinning bets - traders use them when they expect NVDL 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.
NVDL thesis for this butterfly
The market-implied 1-standard-deviation range for NVDL extends from approximately $86.87 on the downside to $151.67 on the upside. A NVDL long call butterfly is a pinning play: it pays maximum at the middle strike if NVDL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NVDL IV rank near 72.22% 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 NVDL at 94.74%. As a Financial Services name, NVDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDL-specific events.
NVDL 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. NVDL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVDL alongside the broader basket even when NVDL-specific fundamentals are unchanged. Always rebuild the position from current NVDL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on NVDL?
- A butterfly on NVDL is the butterfly strategy applied to NVDL (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 NVDL etf trading near $119.27, the strikes shown on this page are snapped to the nearest listed NVDL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVDL 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 NVDL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 94.74%), the computed maximum profit is $570.07 per contract and the computed maximum loss is $2.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVDL butterfly?
- The breakeven for the NVDL 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 NVDL market-implied 1-standard-deviation expected move is approximately 27.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on NVDL?
- Butterflies on NVDL are pinning bets - traders use them when they expect NVDL 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 NVDL implied volatility affect this butterfly?
- NVDL ATM IV is at 94.74% with IV rank near 72.22%, 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.