How are TSL 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 TSL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.30%), the computed maximum profit is $74.07 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TSL butterfly?

The breakeven for the TSL butterfly priced on this page is roughly $15.20 and $16.80 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 TSL market-implied 1-standard-deviation expected move is approximately 16.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TSL implied volatility affect this butterfly?

TSL ATM IV is at 57.30% with IV rank near 7.64%, 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.

TSL Butterfly Strategy

TSL (GraniteShares 1.25x Long Tsla Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

TSL is a short-term tactical tool that aims to deliver 1.25x the price return, less fees and expenses, for a single day of Tesla stock. Purchasers holding shares for longer than a day need to monitor and frequently rebalance their position to attempt to achieve the 1.25x multiple. At the adviser's discretion, the fund may utilize standardized exchange-traded and FLEX call and put options with 1-week to 1-month terms. It may either buy deep in-the-money calls or use a synthetic forward options strategy. Aside from the leverage, the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own stock research prior to initiating a position and trade with conviction.

TSL (GraniteShares 1.25x Long Tsla Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $28.9M, a beta of 2.26 versus the broader market, a 52-week range of 11.11-21.31, average daily share volume of 1.2M, a public-listing history dating back to 2022, approximately 631 full-time employees. These structural characteristics shape how TSL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.26 indicates TSL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TSL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on TSL?

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 TSL snapshot

As of June 29, 2026, spot at $16.30, ATM IV 57.30%, IV rank 7.64%, expected move 16.43%. The butterfly on TSL 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 18-day expiry.

Why this butterfly structure on TSL specifically: TSL IV at 57.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSL butterfly, with a market-implied 1-standard-deviation move of approximately 16.43% (roughly $2.68 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSL expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSL should anchor to the underlying notional of $16.30 per share and to the trader's directional view on TSL etf.

TSL butterfly setup

The TSL 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 TSL near $16.30, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSL chain at a 18-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 TSL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.00	$1.48
Sell 2	Call	$16.00	$0.85
Buy 1	Call	$17.00	$0.43

TSL butterfly risk and reward

Net Premium / Debit: -$20.00
Max Profit (per contract): $74.07
Max Loss (per contract): -$20.00
Breakeven(s): $15.20, $16.80
Risk / Reward Ratio: 3.703

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.

TSL butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on TSL. 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%	-$20.00
$3.61	-77.8%	-$20.00
$7.22	-55.7%	-$20.00
$10.82	-33.6%	-$20.00
$14.42	-11.5%	-$20.00
$18.02	+10.6%	-$20.00
$21.63	+32.7%	-$20.00
$25.23	+54.8%	-$20.00
$28.83	+76.9%	-$20.00
$32.44	+99.0%	-$20.00

When traders use butterfly on TSL

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

TSL thesis for this butterfly

The market-implied 1-standard-deviation range for TSL extends from approximately $13.62 on the downside to $18.98 on the upside. A TSL long call butterfly is a pinning play: it pays maximum at the middle strike if TSL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSL IV rank near 7.64% 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 TSL at 57.30%. As a Financial Services name, TSL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSL-specific events.

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

Frequently asked questions

What is a butterfly on TSL?: A butterfly on TSL is the butterfly strategy applied to TSL (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 TSL etf trading near $16.30, the strikes shown on this page are snapped to the nearest listed TSL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TSL 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 TSL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 57.30%), the computed maximum profit is $74.07 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TSL butterfly?: The breakeven for the TSL butterfly priced on this page is roughly $15.20 and $16.80 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 TSL market-implied 1-standard-deviation expected move is approximately 16.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on TSL?: Butterflies on TSL are pinning bets - traders use them when they expect TSL 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 TSL implied volatility affect this butterfly?: TSL ATM IV is at 57.30% with IV rank near 7.64%, 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.