TSLR Butterfly Strategy
TSLR (GraniteShares 2x Long TSLA Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the common stock of Tesla Inc, (NASDAQ: TSLA) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide 2 times the cumulative return of TSLA for periods greater than a day.
TSLR (GraniteShares 2x Long TSLA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $167.9M, a beta of 3.22 versus the broader market, a 52-week range of 14.1-39.54, average daily share volume of 2.4M, a public-listing history dating back to 2023. These structural characteristics shape how TSLR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.22 indicates TSLR 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 TSLR?
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 TSLR snapshot
As of May 15, 2026, spot at $25.93, ATM IV 89.70%, IV rank 21.33%, expected move 25.72%. The butterfly on TSLR 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 TSLR specifically: TSLR IV at 89.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSLR butterfly, with a market-implied 1-standard-deviation move of approximately 25.72% (roughly $6.67 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 TSLR expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLR should anchor to the underlying notional of $25.93 per share and to the trader's directional view on TSLR etf.
TSLR butterfly setup
The TSLR 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 TSLR near $25.93, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSLR 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 TSLR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.00 | $3.33 |
| Sell 2 | Call | $26.00 | $2.95 |
| Buy 1 | Call | $27.00 | $2.55 |
TSLR butterfly risk and reward
- Net Premium / Debit
- +$2.50
- Max Profit (per contract)
- $95.97
- Max Loss (per contract)
- $2.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 38.389
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.
TSLR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TSLR. 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% | +$2.50 |
| $5.74 | -77.9% | +$2.50 |
| $11.47 | -55.7% | +$2.50 |
| $17.21 | -33.6% | +$2.50 |
| $22.94 | -11.5% | +$2.50 |
| $28.67 | +10.6% | +$2.50 |
| $34.40 | +32.7% | +$2.50 |
| $40.14 | +54.8% | +$2.50 |
| $45.87 | +76.9% | +$2.50 |
| $51.60 | +99.0% | +$2.50 |
When traders use butterfly on TSLR
Butterflies on TSLR are pinning bets - traders use them when they expect TSLR 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.
TSLR thesis for this butterfly
The market-implied 1-standard-deviation range for TSLR extends from approximately $19.26 on the downside to $32.60 on the upside. A TSLR long call butterfly is a pinning play: it pays maximum at the middle strike if TSLR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSLR IV rank near 21.33% 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 TSLR at 89.70%. As a Financial Services name, TSLR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLR-specific events.
TSLR 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. TSLR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLR alongside the broader basket even when TSLR-specific fundamentals are unchanged. Always rebuild the position from current TSLR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TSLR?
- A butterfly on TSLR is the butterfly strategy applied to TSLR (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 TSLR etf trading near $25.93, the strikes shown on this page are snapped to the nearest listed TSLR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLR 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 TSLR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 89.70%), the computed maximum profit is $95.97 per contract and the computed maximum loss is $2.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLR butterfly?
- The breakeven for the TSLR butterfly priced on this page is no defined breakeven on the modeled curve 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 TSLR market-implied 1-standard-deviation expected move is approximately 25.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TSLR?
- Butterflies on TSLR are pinning bets - traders use them when they expect TSLR 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 TSLR implied volatility affect this butterfly?
- TSLR ATM IV is at 89.70% with IV rank near 21.33%, 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.