ONDL Butterfly Strategy
ONDL (Daily Target 2X Long ONDS ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
This fund aims to generate daily returns, before fees and expenses, that are double (200%) the daily percentage change observed in the share price of Ondas Holdings Inc. (Nasdaq: ONDS). It is critical to understand that this investment objective applies strictly to a single trading day and is not designed to achieve similar results over longer periods.
ONDL (Daily Target 2X Long ONDS ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $497,440, a beta of 4.89 versus the broader market, a 52-week range of 4.7-59.29, average daily share volume of 1.6M, a public-listing history dating back to 2025. These structural characteristics shape how ONDL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.89 indicates ONDL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on ONDL?
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.
ONDL snapshot
As of September 29, 2026, spot at $5.50, ATM IV 189.40%, expected move 54.30%. The butterfly on ONDL below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.
Why this butterfly structure on ONDL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ONDL is inferred from ATM IV at 189.40% alone, with a market-implied 1-standard-deviation move of approximately 54.30% (roughly $2.99 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ONDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONDL should anchor to the underlying notional of $5.50 per share and to the trader's directional view on ONDL etf.
ONDL butterfly setup
The ONDL butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ONDL at $5.50 on that close, the first option leg uses a $5.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONDL chain at a 52-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 ONDL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.23 | N/A |
| Sell 2 | Call | $5.50 | N/A |
| Buy 1 | Call | $5.78 | N/A |
ONDL 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.
ONDL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ONDL. 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 ONDL
Butterflies on ONDL are pinning bets - traders use them when they expect ONDL 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.
ONDL thesis for this butterfly
The market-implied 1-standard-deviation range for ONDL extends from approximately $2.51 on the downside to $8.49 on the upside. A ONDL long call butterfly is a pinning play: it pays maximum at the middle strike if ONDL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, ONDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONDL-specific events.
ONDL 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. ONDL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONDL alongside the broader basket even when ONDL-specific fundamentals are unchanged. Always rebuild the position from current ONDL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ONDL?
- A butterfly on ONDL is the butterfly strategy applied to ONDL (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 ONDL etf at $5.50 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed ONDL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ONDL 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 ONDL butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 189.40%), 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 ONDL butterfly?
- The breakeven for the ONDL butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the September 29, 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 ONDL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 54.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ONDL?
- Butterflies on ONDL are pinning bets - traders use them when they expect ONDL 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 ONDL implied volatility affect this butterfly?
- Current ONDL ATM IV is 189.40%; IV rank context is unavailable in the current snapshot.