TPOR Butterfly Strategy
TPOR (Direxion Daily Transportation Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Transportation Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Transportation Select Industry FMC Capped Index. There is no guarantee the fund will achieve its stated investment objective.
TPOR (Direxion Daily Transportation Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $16.9M, a beta of 4.06 versus the broader market, a 52-week range of 21.04-40.43, average daily share volume of 24K, a public-listing history dating back to 2017. These structural characteristics shape how TPOR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.06 indicates TPOR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TPOR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TPOR?
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 TPOR snapshot
As of May 15, 2026, spot at $34.23, ATM IV 74.50%, IV rank 40.75%, expected move 21.36%. The butterfly on TPOR 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 TPOR specifically: TPOR IV at 74.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 21.36% (roughly $7.31 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 TPOR expiries trade a higher absolute premium for lower per-day decay. Position sizing on TPOR should anchor to the underlying notional of $34.23 per share and to the trader's directional view on TPOR etf.
TPOR butterfly setup
The TPOR 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 TPOR near $34.23, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TPOR 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 TPOR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $33.00 | $3.48 |
| Sell 2 | Call | $34.00 | $2.95 |
| Buy 1 | Call | $36.00 | $2.55 |
TPOR butterfly risk and reward
- Net Premium / Debit
- -$12.50
- Max Profit (per contract)
- $81.20
- Max Loss (per contract)
- -$112.50
- Breakeven(s)
- $33.13, $34.88
- Risk / Reward Ratio
- 0.722
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.
TPOR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TPOR. 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% | -$12.50 |
| $7.58 | -77.9% | -$12.50 |
| $15.14 | -55.8% | -$12.50 |
| $22.71 | -33.6% | -$12.50 |
| $30.28 | -11.5% | -$12.50 |
| $37.85 | +10.6% | -$112.50 |
| $45.41 | +32.7% | -$112.50 |
| $52.98 | +54.8% | -$112.50 |
| $60.55 | +76.9% | -$112.50 |
| $68.12 | +99.0% | -$112.50 |
When traders use butterfly on TPOR
Butterflies on TPOR are pinning bets - traders use them when they expect TPOR 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.
TPOR thesis for this butterfly
The market-implied 1-standard-deviation range for TPOR extends from approximately $26.92 on the downside to $41.54 on the upside. A TPOR long call butterfly is a pinning play: it pays maximum at the middle strike if TPOR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TPOR IV rank near 40.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TPOR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TPOR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TPOR-specific events.
TPOR 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. TPOR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TPOR alongside the broader basket even when TPOR-specific fundamentals are unchanged. Always rebuild the position from current TPOR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TPOR?
- A butterfly on TPOR is the butterfly strategy applied to TPOR (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 TPOR etf trading near $34.23, the strikes shown on this page are snapped to the nearest listed TPOR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TPOR 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 TPOR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 74.50%), the computed maximum profit is $81.20 per contract and the computed maximum loss is -$112.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TPOR butterfly?
- The breakeven for the TPOR butterfly priced on this page is roughly $33.13 and $34.88 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 TPOR market-implied 1-standard-deviation expected move is approximately 21.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TPOR?
- Butterflies on TPOR are pinning bets - traders use them when they expect TPOR 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 TPOR implied volatility affect this butterfly?
- TPOR ATM IV is at 74.50% with IV rank near 40.75%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.