How are TEUP 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 TEUP butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 203.80%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TEUP butterfly?

The breakeven for the TEUP butterfly priced on this page is roughly $17.33 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 TEUP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 58.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TEUP implied volatility affect this butterfly?

Current TEUP ATM IV is 203.80%; IV rank context is unavailable in the current snapshot.

TEUP Butterfly Strategy

TEUP (ETF Opportunities Trust - T-REX 2X Long TE Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

TEUP is designed for making bullish bets on the stock price of T1 Energy Inc. (NYSE: TE) through swap agreements. The objective is to obtain daily leveraged exposure equivalent to 200% of the fund's net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to TE's daily price movements. As a geared product, the is intended as a short-term tactical tool, rather than as a long-term investment vehicle. As a result, returns may deviate from the expected 2x if held for longer than a single day due to compounding. This strategy is high-risk and does not include a defensive position as part of its overall process.

TEUP (ETF Opportunities Trust - T-REX 2X Long TE Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.5M, a beta of 14.49 versus the broader market, a 52-week range of 15.23-320.6, average daily share volume of 19K, a public-listing history dating back to 2026. These structural characteristics shape how TEUP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 14.49 indicates TEUP 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 TEUP?

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.

TEUP snapshot

As of September 29, 2026, spot at $17.46, ATM IV 203.80%, expected move 58.43%. The butterfly on TEUP 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 TEUP specifically: IV rank is unavailable in the current snapshot, so regime-based timing for TEUP is inferred from ATM IV at 203.80% alone, with a market-implied 1-standard-deviation move of approximately 58.43% (roughly $10.20 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 TEUP expiries trade a higher absolute premium for lower per-day decay. Position sizing on TEUP should anchor to the underlying notional of $17.46 per share and to the trader's directional view on TEUP etf.

TEUP butterfly setup

The TEUP 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 TEUP at $17.46 on that close, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TEUP 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 TEUP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$17.00	$2.83
Sell 2	Call	$17.00	$2.83
Buy 1	Call	$18.00	$2.50

TEUP butterfly risk and reward

Net Premium / Debit: +$32.50
Max Profit (per contract): $32.50
Max Loss (per contract): -$67.50
Breakeven(s): $17.33
Risk / Reward Ratio: 0.481

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.

TEUP butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TEUP. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$32.50
$3.87	-77.8%	+$32.50
$7.73	-55.7%	+$32.50
$11.59	-33.6%	+$32.50
$15.45	-11.5%	+$32.50
$19.31	+10.6%	-$67.50
$23.17	+32.7%	-$67.50
$27.03	+54.8%	-$67.50
$30.89	+76.9%	-$67.50
$34.74	+99.0%	-$67.50

When traders use butterfly on TEUP

Butterflies on TEUP are pinning bets - traders use them when they expect TEUP 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.

TEUP thesis for this butterfly

The market-implied 1-standard-deviation range for TEUP extends from approximately $7.26 on the downside to $27.66 on the upside. A TEUP long call butterfly is a pinning play: it pays maximum at the middle strike if TEUP 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, TEUP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TEUP-specific events.

TEUP 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. TEUP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TEUP alongside the broader basket even when TEUP-specific fundamentals are unchanged. Always rebuild the position from current TEUP chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on TEUP?: A butterfly on TEUP is the butterfly strategy applied to TEUP (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 TEUP etf at $17.46 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed TEUP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TEUP 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 TEUP butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 203.80%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TEUP butterfly?: The breakeven for the TEUP butterfly priced on this page is roughly $17.33 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 TEUP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 58.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TEUP?: Butterflies on TEUP are pinning bets - traders use them when they expect TEUP 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 TEUP implied volatility affect this butterfly?: Current TEUP ATM IV is 203.80%; IV rank context is unavailable in the current snapshot.