POEL Butterfly Strategy
POEL (Tidal Trust II - Defiance Daily Target 2X Long POET ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
POEL uses swap agreements to make bullish bets on Poet Technologies Inc. (POET) share price. POET provides data storage solutions across enterprise, cloud, and consumer markets. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in POET's share price through daily rebalancing. As a leveraged product, it is designed for short-term tactical use, not as a long-term investment vehicle. Returns may deviate from the expected 2x if held longer than a single day due to factors like volatility and compounding effects. This strategy is high-risk and does not incorporate a defensive position.
POEL (Tidal Trust II - Defiance Daily Target 2X Long POET ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.2M, a beta of 15.20 versus the broader market, a 52-week range of 6.75-134, average daily share volume of 561K, a public-listing history dating back to 2026. These structural characteristics shape how POEL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 15.20 indicates POEL 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 POEL?
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.
POEL snapshot
As of September 29, 2026, spot at $8.00, ATM IV 148.70%, expected move 42.63%. The butterfly on POEL 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 17-day expiry.
Why this butterfly structure on POEL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for POEL is inferred from ATM IV at 148.70% alone, with a market-implied 1-standard-deviation move of approximately 42.63% (roughly $3.41 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated POEL expiries trade a higher absolute premium for lower per-day decay. Position sizing on POEL should anchor to the underlying notional of $8.00 per share and to the trader's directional view on POEL etf.
POEL butterfly setup
The POEL 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 POEL at $8.00 on that close, the first option leg uses a $7.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed POEL chain at a 17-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 POEL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.60 | N/A |
| Sell 2 | Call | $8.00 | N/A |
| Buy 1 | Call | $8.40 | N/A |
POEL 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.
POEL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on POEL. 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 POEL
Butterflies on POEL are pinning bets - traders use them when they expect POEL 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.
POEL thesis for this butterfly
The market-implied 1-standard-deviation range for POEL extends from approximately $4.59 on the downside to $11.41 on the upside. A POEL long call butterfly is a pinning play: it pays maximum at the middle strike if POEL 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, POEL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to POEL-specific events.
POEL 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. POEL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move POEL alongside the broader basket even when POEL-specific fundamentals are unchanged. Always rebuild the position from current POEL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on POEL?
- A butterfly on POEL is the butterfly strategy applied to POEL (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 POEL etf at $8.00 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed POEL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are POEL 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 POEL butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 148.70%), 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 POEL butterfly?
- The breakeven for the POEL 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 POEL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on POEL?
- Butterflies on POEL are pinning bets - traders use them when they expect POEL 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 POEL implied volatility affect this butterfly?
- Current POEL ATM IV is 148.70%; IV rank context is unavailable in the current snapshot.