SBIT Butterfly Strategy
SBIT (ProShares - UltraShort Bitcoin ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Bloomberg Bitcoin Index.
SBIT (ProShares - UltraShort Bitcoin ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $99.0M, a beta of -2.39 versus the broader market, a 52-week range of 23.6-76.515, average daily share volume of 1.4M, a public-listing history dating back to 2024. These structural characteristics shape how SBIT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.39 indicates SBIT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SBIT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on SBIT?
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 SBIT snapshot
As of May 15, 2026, spot at $40.61, ATM IV 73.20%, IV rank 22.46%, expected move 20.99%. The butterfly on SBIT 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 34-day expiry.
Why this butterfly structure on SBIT specifically: SBIT IV at 73.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SBIT butterfly, with a market-implied 1-standard-deviation move of approximately 20.99% (roughly $8.52 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SBIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SBIT should anchor to the underlying notional of $40.61 per share and to the trader's directional view on SBIT etf.
SBIT butterfly setup
The SBIT 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 SBIT near $40.61, the first option leg uses a $39.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SBIT chain at a 34-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 SBIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $39.00 | $4.40 |
| Sell 2 | Call | $41.00 | $3.38 |
| Buy 1 | Call | $43.00 | $2.60 |
SBIT butterfly risk and reward
- Net Premium / Debit
- -$25.00
- Max Profit (per contract)
- $156.90
- Max Loss (per contract)
- -$25.00
- Breakeven(s)
- $39.25, $42.75
- Risk / Reward Ratio
- 6.276
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.
SBIT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SBIT. 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% | -$25.00 |
| $8.99 | -77.9% | -$25.00 |
| $17.97 | -55.8% | -$25.00 |
| $26.94 | -33.7% | -$25.00 |
| $35.92 | -11.5% | -$25.00 |
| $44.90 | +10.6% | -$25.00 |
| $53.88 | +32.7% | -$25.00 |
| $62.86 | +54.8% | -$25.00 |
| $71.83 | +76.9% | -$25.00 |
| $80.81 | +99.0% | -$25.00 |
When traders use butterfly on SBIT
Butterflies on SBIT are pinning bets - traders use them when they expect SBIT 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.
SBIT thesis for this butterfly
The market-implied 1-standard-deviation range for SBIT extends from approximately $32.09 on the downside to $49.13 on the upside. A SBIT long call butterfly is a pinning play: it pays maximum at the middle strike if SBIT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SBIT IV rank near 22.46% 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 SBIT at 73.20%. As a Financial Services name, SBIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SBIT-specific events.
SBIT 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. SBIT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SBIT alongside the broader basket even when SBIT-specific fundamentals are unchanged. Always rebuild the position from current SBIT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SBIT?
- A butterfly on SBIT is the butterfly strategy applied to SBIT (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 SBIT etf trading near $40.61, the strikes shown on this page are snapped to the nearest listed SBIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SBIT 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 SBIT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.20%), the computed maximum profit is $156.90 per contract and the computed maximum loss is -$25.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SBIT butterfly?
- The breakeven for the SBIT butterfly priced on this page is roughly $39.25 and $42.75 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 SBIT market-implied 1-standard-deviation expected move is approximately 20.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SBIT?
- Butterflies on SBIT are pinning bets - traders use them when they expect SBIT 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 SBIT implied volatility affect this butterfly?
- SBIT ATM IV is at 73.20% with IV rank near 22.46%, 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.