How are TSDD 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 TSDD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 82.20%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TSDD butterfly?

The breakeven for the TSDD butterfly priced on this page is roughly $9.50 at expiration, derived from the August 14, 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 TSDD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TSDD implied volatility affect this butterfly?

TSDD ATM IV is at 82.20% with IV rank near 13.37%, 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.

TSDD Butterfly Strategy

TSDD (GraniteShares 2x Short TSLA Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

TSDD is a short-term tactical tool that aims to deliver -2x the price return, less fees and expenses, for a single day of Tesla stock. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the -2x multiple. Aside from the inverse leverage exposure, compared to traditional ETFs, the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending, and holders are on the positive corresponding side of that trade. However, the shares provide the advantage of capping the maximum loss to the full amount invested.

TSDD (GraniteShares 2x Short TSLA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $29.4M, a beta of -2.22 versus the broader market, a 52-week range of 6.57-21.42, average daily share volume of 23.7M, a public-listing history dating back to 2023. These structural characteristics shape how TSDD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -2.22 indicates TSDD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSDD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TSDD?

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.

TSDD snapshot

As of August 14, 2026, spot at $9.36, ATM IV 82.20%, IV rank 13.37%, expected move 23.57%. The butterfly on TSDD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this butterfly structure on TSDD specifically: TSDD IV at 82.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSDD butterfly, with a market-implied 1-standard-deviation move of approximately 23.57% (roughly $2.21 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSDD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSDD should anchor to the underlying notional of $9.36 per share and to the trader's directional view on TSDD etf.

TSDD butterfly setup

The TSDD butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TSDD at $9.36 on that close, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSDD chain at a 35-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 TSDD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$9.00	$1.13
Sell 2	Call	$9.00	$1.13
Buy 1	Call	$10.00	$0.63

TSDD butterfly risk and reward

Net Premium / Debit: +$50.00
Max Profit (per contract): $50.00
Max Loss (per contract): -$50.00
Breakeven(s): $9.50
Risk / Reward Ratio: 1.000

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.

TSDD butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TSDD. 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%	+$50.00
$2.08	-77.8%	+$50.00
$4.15	-55.7%	+$50.00
$6.22	-33.6%	+$50.00
$8.28	-11.5%	+$50.00
$10.35	+10.6%	-$50.00
$12.42	+32.7%	-$50.00
$14.49	+54.8%	-$50.00
$16.56	+76.9%	-$50.00
$18.63	+99.0%	-$50.00

When traders use butterfly on TSDD

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

TSDD thesis for this butterfly

The market-implied 1-standard-deviation range for TSDD extends from approximately $7.15 on the downside to $11.57 on the upside. A TSDD long call butterfly is a pinning play: it pays maximum at the middle strike if TSDD settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSDD IV rank near 13.37% 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 TSDD at 82.20%. As a Financial Services name, TSDD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSDD-specific events.

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

Frequently asked questions

What is a butterfly on TSDD?: A butterfly on TSDD is the butterfly strategy applied to TSDD (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 TSDD etf at $9.36 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TSDD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TSDD 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 TSDD butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 82.20%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TSDD butterfly?: The breakeven for the TSDD butterfly priced on this page is roughly $9.50 at expiration, derived from the August 14, 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 TSDD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TSDD?: Butterflies on TSDD are pinning bets - traders use them when they expect TSDD 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 TSDD implied volatility affect this butterfly?: TSDD ATM IV is at 82.20% with IV rank near 13.37%, 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.