TSLW Butterfly Strategy
TSLW (Roundhill Investments - TSLA WeeklyPay ETF), in the Financial Services sector, (Financial - Capital Markets industry), listed on CBOE.
The Roundhill TSLA WeeklyPay ETF (“TSLW”) is designed for investors seeking a combination of income and growth potential. TSLW aims to provide weekly distributions and calendar week returns, before fees and expenses, equal to 1.2 times (120%) the calendar week total return of Tesla common shares (Nasdaq: TSLA). TSLW is an actively-managed ETF.
TSLW (Roundhill Investments - TSLA WeeklyPay ETF) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $66.9M, a beta of 1.41 versus the broader market, a 52-week range of 20.675-43.59, average daily share volume of 147K, a public-listing history dating back to 2025. These structural characteristics shape how TSLW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates TSLW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TSLW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TSLW?
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 TSLW snapshot
As of May 15, 2026, spot at $25.90, ATM IV 73.10%, IV rank 10.22%, expected move 20.96%. The butterfly on TSLW 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 TSLW specifically: TSLW IV at 73.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSLW butterfly, with a market-implied 1-standard-deviation move of approximately 20.96% (roughly $5.43 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 TSLW expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLW should anchor to the underlying notional of $25.90 per share and to the trader's directional view on TSLW etf.
TSLW butterfly setup
The TSLW 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 TSLW near $25.90, 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 TSLW 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 TSLW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.00 | $1.65 |
| Sell 2 | Call | $26.00 | $0.90 |
| Buy 1 | Call | $27.00 | $1.23 |
TSLW butterfly risk and reward
- Net Premium / Debit
- -$107.50
- Max Profit (per contract)
- -$11.01
- Max Loss (per contract)
- -$107.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- -0.102
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.
TSLW butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TSLW. 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% | -$107.50 |
| $5.74 | -77.9% | -$107.50 |
| $11.46 | -55.7% | -$107.50 |
| $17.19 | -33.6% | -$107.50 |
| $22.91 | -11.5% | -$107.50 |
| $28.64 | +10.6% | -$107.50 |
| $34.36 | +32.7% | -$107.50 |
| $40.09 | +54.8% | -$107.50 |
| $45.81 | +76.9% | -$107.50 |
| $51.54 | +99.0% | -$107.50 |
When traders use butterfly on TSLW
Butterflies on TSLW are pinning bets - traders use them when they expect TSLW 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.
TSLW thesis for this butterfly
The market-implied 1-standard-deviation range for TSLW extends from approximately $20.47 on the downside to $31.33 on the upside. A TSLW long call butterfly is a pinning play: it pays maximum at the middle strike if TSLW settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TSLW IV rank near 10.22% 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 TSLW at 73.10%. As a Financial Services name, TSLW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLW-specific events.
TSLW 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. TSLW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSLW alongside the broader basket even when TSLW-specific fundamentals are unchanged. Always rebuild the position from current TSLW chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TSLW?
- A butterfly on TSLW is the butterfly strategy applied to TSLW (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 TSLW etf trading near $25.90, the strikes shown on this page are snapped to the nearest listed TSLW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSLW 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 TSLW butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.10%), the computed maximum profit is -$11.01 per contract and the computed maximum loss is -$107.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSLW butterfly?
- The breakeven for the TSLW 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 TSLW market-implied 1-standard-deviation expected move is approximately 20.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TSLW?
- Butterflies on TSLW are pinning bets - traders use them when they expect TSLW 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 TSLW implied volatility affect this butterfly?
- TSLW ATM IV is at 73.10% with IV rank near 10.22%, 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.