TSLQ Butterfly Strategy
TSLQ (Tradr 2X Short TSLA Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Under normal market circumstances, the adviser will maintain at least 80% exposure to financial instruments that provide inverse exposure to the daily performance of TSLA. The fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve on a daily basis, before fees and expenses, -100% performance of TSLA for a single day, not for any other period, by entering into one or more swap agreements on TSLA. The fund is non-diversified.
TSLQ (Tradr 2X Short TSLA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.00B, a beta of -1.96 versus the broader market, a 52-week range of 14.775-75.633, average daily share volume of 10.9M, a public-listing history dating back to 2022. These structural characteristics shape how TSLQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.96 indicates TSLQ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSLQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TSLQ?
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 TSLQ snapshot
As of May 15, 2026, spot at $17.70, ATM IV 90.00%, IV rank 31.52%, expected move 25.80%. The butterfly on TSLQ 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 TSLQ specifically: TSLQ IV at 90.00% 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 25.80% (roughly $4.57 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 TSLQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLQ should anchor to the underlying notional of $17.70 per share and to the trader's directional view on TSLQ etf.
TSLQ butterfly setup
The TSLQ 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 TSLQ near $17.70, 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 TSLQ 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 TSLQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $17.00 | $2.25 |
| Sell 2 | Call | $18.00 | $1.78 |
| Buy 1 | Call | $19.00 | $1.45 |
TSLQ butterfly risk and reward
- Net Premium / Debit
- -$15.00
- Max Profit (per contract)
- $82.18
- Max Loss (per contract)
- -$15.00
- Breakeven(s)
- $17.15, $18.85
- Risk / Reward Ratio
- 5.478
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.
TSLQ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TSLQ. 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 | -99.9% | -$15.00 |
| $3.92 | -77.8% | -$15.00 |
| $7.83 | -55.7% | -$15.00 |
| $11.75 | -33.6% | -$15.00 |
| $15.66 | -11.5% | -$15.00 |
| $19.57 | +10.6% | -$15.00 |
| $23.48 | +32.7% | -$15.00 |
| $27.40 | +54.8% | -$15.00 |
| $31.31 | +76.9% | -$15.00 |
| $35.22 | +99.0% | -$15.00 |
When traders use butterfly on TSLQ
Butterflies on TSLQ are pinning bets - traders use them when they expect TSLQ 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.
TSLQ thesis for this butterfly
The market-implied 1-standard-deviation range for TSLQ extends from approximately $13.13 on the downside to $22.27 on the upside. A TSLQ long call butterfly is a pinning play: it pays maximum at the middle strike if TSLQ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSLQ IV rank near 31.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TSLQ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TSLQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLQ-specific events.
TSLQ 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. TSLQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLQ alongside the broader basket even when TSLQ-specific fundamentals are unchanged. Always rebuild the position from current TSLQ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TSLQ?
- A butterfly on TSLQ is the butterfly strategy applied to TSLQ (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 TSLQ etf trading near $17.70, the strikes shown on this page are snapped to the nearest listed TSLQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLQ 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 TSLQ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 90.00%), the computed maximum profit is $82.18 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLQ butterfly?
- The breakeven for the TSLQ butterfly priced on this page is roughly $17.15 and $18.85 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 TSLQ market-implied 1-standard-deviation expected move is approximately 25.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TSLQ?
- Butterflies on TSLQ are pinning bets - traders use them when they expect TSLQ 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 TSLQ implied volatility affect this butterfly?
- TSLQ ATM IV is at 90.00% with IV rank near 31.52%, 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.