SOYB Butterfly Strategy
SOYB (Teucrium Soybean Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Teucrium Soybean Fund (SOYB) provides investors an easy way to gain exposure to the price of soybeans futures in a brokerage account. Soybean prices have a historically low correlation with U.S. equities making SOYB a potentially attractive option for portfolio diversification.
SOYB (Teucrium Soybean Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $42.8M, a beta of 0.67 versus the broader market, a 52-week range of 21.06-25.47, average daily share volume of 119K, a public-listing history dating back to 2011. These structural characteristics shape how SOYB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates SOYB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on SOYB?
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 SOYB snapshot
As of May 15, 2026, spot at $24.69, ATM IV 18.00%, IV rank 3.95%, expected move 5.16%. The butterfly on SOYB 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 SOYB specifically: SOYB IV at 18.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a SOYB butterfly, with a market-implied 1-standard-deviation move of approximately 5.16% (roughly $1.27 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 SOYB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOYB should anchor to the underlying notional of $24.69 per share and to the trader's directional view on SOYB etf.
SOYB butterfly setup
The SOYB 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 SOYB near $24.69, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOYB 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 SOYB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $23.00 | $1.78 |
| Sell 2 | Call | $25.00 | $0.55 |
| Buy 1 | Call | $26.00 | $0.20 |
SOYB butterfly risk and reward
- Net Premium / Debit
- -$87.50
- Max Profit (per contract)
- $105.79
- Max Loss (per contract)
- -$87.50
- Breakeven(s)
- $23.88
- Risk / Reward Ratio
- 1.209
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.
SOYB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SOYB. 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% | -$87.50 |
| $5.47 | -77.9% | -$87.50 |
| $10.93 | -55.7% | -$87.50 |
| $16.38 | -33.6% | -$87.50 |
| $21.84 | -11.5% | -$87.50 |
| $27.30 | +10.6% | +$12.50 |
| $32.76 | +32.7% | +$12.50 |
| $38.22 | +54.8% | +$12.50 |
| $43.67 | +76.9% | +$12.50 |
| $49.13 | +99.0% | +$12.50 |
When traders use butterfly on SOYB
Butterflies on SOYB are pinning bets - traders use them when they expect SOYB 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.
SOYB thesis for this butterfly
The market-implied 1-standard-deviation range for SOYB extends from approximately $23.42 on the downside to $25.96 on the upside. A SOYB long call butterfly is a pinning play: it pays maximum at the middle strike if SOYB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current SOYB IV rank near 3.95% 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 SOYB at 18.00%. As a Financial Services name, SOYB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOYB-specific events.
SOYB 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. SOYB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SOYB alongside the broader basket even when SOYB-specific fundamentals are unchanged. Always rebuild the position from current SOYB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SOYB?
- A butterfly on SOYB is the butterfly strategy applied to SOYB (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 SOYB etf trading near $24.69, the strikes shown on this page are snapped to the nearest listed SOYB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SOYB 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 SOYB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 18.00%), the computed maximum profit is $105.79 per contract and the computed maximum loss is -$87.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SOYB butterfly?
- The breakeven for the SOYB butterfly priced on this page is roughly $23.88 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 SOYB market-implied 1-standard-deviation expected move is approximately 5.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SOYB?
- Butterflies on SOYB are pinning bets - traders use them when they expect SOYB 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 SOYB implied volatility affect this butterfly?
- SOYB ATM IV is at 18.00% with IV rank near 3.95%, 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.