TBIL Butterfly Strategy
TBIL (F/m US Treasury 3 Month Bill Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
TBIL is part of the first single-bond ETF suite. The fund is a tool used in portfolio management. The fund tracks an index that holds just the on-the-run 3-month US T-Bills, which are the most recently issued and most liquid. The index purchases a single issue which will be held for a full month. At each month-end rebalancing, the underlying issue is sold and rolled into a newly selected issue, given that there has been a new public sale or auction by the US Government for 3-month T-Bills. The fund pays transaction costs when it buys and sells securities.
TBIL (F/m US Treasury 3 Month Bill Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.10B, a beta of -0.00 versus the broader market, a 52-week range of 49.81-50.02, average daily share volume of 2.1M, a public-listing history dating back to 2022. These structural characteristics shape how TBIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.00 indicates TBIL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TBIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TBIL?
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 TBIL snapshot
As of June 30, 2026, spot at $49.86, ATM IV 5.10%, IV rank 1.15%, expected move 1.46%. The butterfly on TBIL 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 17-day expiry.
Why this butterfly structure on TBIL specifically: TBIL IV at 5.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a TBIL butterfly, with a market-implied 1-standard-deviation move of approximately 1.46% (roughly $0.73 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 TBIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on TBIL should anchor to the underlying notional of $49.86 per share and to the trader's directional view on TBIL etf.
TBIL butterfly setup
The TBIL 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 TBIL near $49.86, the first option leg uses a $47.37 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TBIL 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 TBIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $47.37 | N/A |
| Sell 2 | Call | $49.86 | N/A |
| Buy 1 | Call | $52.35 | N/A |
TBIL 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.
TBIL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TBIL. 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 TBIL
Butterflies on TBIL are pinning bets - traders use them when they expect TBIL 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.
TBIL thesis for this butterfly
The market-implied 1-standard-deviation range for TBIL extends from approximately $49.13 on the downside to $50.59 on the upside. A TBIL long call butterfly is a pinning play: it pays maximum at the middle strike if TBIL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TBIL IV rank near 1.15% 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 TBIL at 5.10%. As a Financial Services name, TBIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TBIL-specific events.
TBIL 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. TBIL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TBIL alongside the broader basket even when TBIL-specific fundamentals are unchanged. Always rebuild the position from current TBIL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TBIL?
- A butterfly on TBIL is the butterfly strategy applied to TBIL (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 TBIL etf trading near $49.86, the strikes shown on this page are snapped to the nearest listed TBIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TBIL 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 TBIL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 5.10%), 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 TBIL butterfly?
- The breakeven for the TBIL butterfly priced on this page is no defined breakeven on the modeled curve 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 TBIL market-implied 1-standard-deviation expected move is approximately 1.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TBIL?
- Butterflies on TBIL are pinning bets - traders use them when they expect TBIL 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 TBIL implied volatility affect this butterfly?
- TBIL ATM IV is at 5.10% with IV rank near 1.15%, 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.