TSLT Butterfly Strategy
TSLT (T-REX 2X Long Tesla Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests in swap agreements that provide 200% daily exposure to TSLA equal to at least 80% of its net assets (plus any borrowings for investment purposes). The fund will enter into one or more swap agreements with major global financial institutions whereby the fund and the global financial institution will agree to exchange the return earned on an investment by The fund invests in TSLA that is equal, on a daily basis, to 200% of the value of the fund’s net assets. The fund is non-diversified.
TSLT (T-REX 2X Long Tesla Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $229.5M, a beta of 3.26 versus the broader market, a 52-week range of 12.06-33.03, average daily share volume of 3.4M, a public-listing history dating back to 2023. These structural characteristics shape how TSLT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.26 indicates TSLT 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 TSLT?
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 TSLT snapshot
As of May 15, 2026, spot at $21.20, ATM IV 89.80%, IV rank 17.98%, expected move 25.74%. The butterfly on TSLT 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 TSLT specifically: TSLT IV at 89.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSLT butterfly, with a market-implied 1-standard-deviation move of approximately 25.74% (roughly $5.46 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 TSLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLT should anchor to the underlying notional of $21.20 per share and to the trader's directional view on TSLT etf.
TSLT butterfly setup
The TSLT 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 TSLT near $21.20, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSLT 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 TSLT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.00 | $3.15 |
| Sell 2 | Call | $21.00 | $2.50 |
| Buy 1 | Call | $22.00 | $2.13 |
TSLT butterfly risk and reward
- Net Premium / Debit
- -$27.50
- Max Profit (per contract)
- $62.65
- Max Loss (per contract)
- -$27.50
- Breakeven(s)
- $20.28, $21.73
- Risk / Reward Ratio
- 2.278
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.
TSLT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TSLT. 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% | -$27.50 |
| $4.70 | -77.8% | -$27.50 |
| $9.38 | -55.7% | -$27.50 |
| $14.07 | -33.6% | -$27.50 |
| $18.76 | -11.5% | -$27.50 |
| $23.44 | +10.6% | -$27.50 |
| $28.13 | +32.7% | -$27.50 |
| $32.81 | +54.8% | -$27.50 |
| $37.50 | +76.9% | -$27.50 |
| $42.19 | +99.0% | -$27.50 |
When traders use butterfly on TSLT
Butterflies on TSLT are pinning bets - traders use them when they expect TSLT 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.
TSLT thesis for this butterfly
The market-implied 1-standard-deviation range for TSLT extends from approximately $15.74 on the downside to $26.66 on the upside. A TSLT long call butterfly is a pinning play: it pays maximum at the middle strike if TSLT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSLT IV rank near 17.98% 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 TSLT at 89.80%. As a Financial Services name, TSLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLT-specific events.
TSLT 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. TSLT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLT alongside the broader basket even when TSLT-specific fundamentals are unchanged. Always rebuild the position from current TSLT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TSLT?
- A butterfly on TSLT is the butterfly strategy applied to TSLT (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 TSLT etf trading near $21.20, the strikes shown on this page are snapped to the nearest listed TSLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLT 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 TSLT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 89.80%), the computed maximum profit is $62.65 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLT butterfly?
- The breakeven for the TSLT butterfly priced on this page is roughly $20.28 and $21.73 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 TSLT market-implied 1-standard-deviation expected move is approximately 25.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TSLT?
- Butterflies on TSLT are pinning bets - traders use them when they expect TSLT 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 TSLT implied volatility affect this butterfly?
- TSLT ATM IV is at 89.80% with IV rank near 17.98%, 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.