QPUX Butterfly Strategy
QPUX (Tidal Trust II - Defiance 2X Daily Long Pure Quantum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The fund seeks daily leveraged investment results, before fees and expenses, that correspond to two times (2X) the performance of an actively managed group of “pure quantum” company securities (the “Target Portfolio”) by employing derivatives, namely swap agreements and/or listed options contracts. It is non-diversified.
QPUX (Tidal Trust II - Defiance 2X Daily Long Pure Quantum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $33.3M, a beta of 11.60 versus the broader market, a 52-week range of 11.3-268.83, average daily share volume of 253K, a public-listing history dating back to 2025. These structural characteristics shape how QPUX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 11.60 indicates QPUX 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 QPUX?
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.
QPUX snapshot
As of September 29, 2026, spot at $13.02, ATM IV 124.40%, IV rank 4.05%, expected move 35.66%. The butterfly on QPUX 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 QPUX specifically: QPUX IV at 124.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a QPUX butterfly, with a market-implied 1-standard-deviation move of approximately 35.66% (roughly $4.64 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 QPUX expiries trade a higher absolute premium for lower per-day decay. Position sizing on QPUX should anchor to the underlying notional of $13.02 per share and to the trader's directional view on QPUX etf.
QPUX butterfly setup
The QPUX 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 QPUX at $13.02 on that close, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QPUX 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 QPUX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $12.00 | $2.23 |
| Sell 2 | Call | $13.00 | $1.60 |
| Buy 1 | Call | $14.00 | $1.40 |
QPUX butterfly risk and reward
- Net Premium / Debit
- -$42.50
- Max Profit (per contract)
- $53.46
- Max Loss (per contract)
- -$42.50
- Breakeven(s)
- $12.43, $13.58
- Risk / Reward Ratio
- 1.258
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.
QPUX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on QPUX. 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 | -99.9% | -$42.50 |
| $2.89 | -77.8% | -$42.50 |
| $5.77 | -55.7% | -$42.50 |
| $8.64 | -33.6% | -$42.50 |
| $11.52 | -11.5% | -$42.50 |
| $14.40 | +10.6% | -$42.50 |
| $17.28 | +32.7% | -$42.50 |
| $20.15 | +54.8% | -$42.50 |
| $23.03 | +76.9% | -$42.50 |
| $25.91 | +99.0% | -$42.50 |
When traders use butterfly on QPUX
Butterflies on QPUX are pinning bets - traders use them when they expect QPUX 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.
QPUX thesis for this butterfly
The market-implied 1-standard-deviation range for QPUX extends from approximately $8.38 on the downside to $17.66 on the upside. A QPUX long call butterfly is a pinning play: it pays maximum at the middle strike if QPUX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QPUX IV rank near 4.05% 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 QPUX at 124.40%. As a Financial Services name, QPUX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QPUX-specific events.
QPUX 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. QPUX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QPUX alongside the broader basket even when QPUX-specific fundamentals are unchanged. Always rebuild the position from current QPUX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on QPUX?
- A butterfly on QPUX is the butterfly strategy applied to QPUX (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 QPUX etf at $13.02 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed QPUX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are QPUX 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 QPUX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 124.40%), the computed maximum profit is $53.46 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QPUX butterfly?
- The breakeven for the QPUX butterfly priced on this page is roughly $12.43 and $13.58 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 QPUX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 35.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on QPUX?
- Butterflies on QPUX are pinning bets - traders use them when they expect QPUX 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 QPUX implied volatility affect this butterfly?
- QPUX ATM IV is at 124.40% with IV rank near 4.05%, 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.