UPSG Butterfly Strategy
UPSG (Leverage Shares 2x Long UPS Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Leverage Shares 2x Long UPS Daily ETF (UPSG) is a 2x Daily Leveraged (Bull) ETF designed for active traders seeking to magnify short-term results. The UPSG ETF aims to achieve two times (200%) the daily performance of UPS stock, minus fees and expenses.
UPSG (Leverage Shares 2x Long UPS Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $5.3M, a beta of 2.62 versus the broader market, a 52-week range of 13.14-21.62, average daily share volume of 4K, a public-listing history dating back to 2025. These structural characteristics shape how UPSG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.62 indicates UPSG 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 UPSG?
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 UPSG snapshot
As of May 15, 2026, spot at $13.90, ATM IV 118.70%, expected move 34.03%. The butterfly on UPSG 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 UPSG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for UPSG is inferred from ATM IV at 118.70% alone, with a market-implied 1-standard-deviation move of approximately 34.03% (roughly $4.73 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 UPSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on UPSG should anchor to the underlying notional of $13.90 per share and to the trader's directional view on UPSG etf.
UPSG butterfly setup
The UPSG 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 UPSG near $13.90, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UPSG 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 UPSG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $1.40 |
| Sell 2 | Call | $14.00 | $0.94 |
| Buy 1 | Call | $15.00 | $0.56 |
UPSG butterfly risk and reward
- Net Premium / Debit
- -$8.00
- Max Profit (per contract)
- $89.48
- Max Loss (per contract)
- -$8.00
- Breakeven(s)
- $13.08, $14.92
- Risk / Reward Ratio
- 11.185
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.
UPSG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UPSG. 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% | -$8.00 |
| $3.08 | -77.8% | -$8.00 |
| $6.15 | -55.7% | -$8.00 |
| $9.23 | -33.6% | -$8.00 |
| $12.30 | -11.5% | -$8.00 |
| $15.37 | +10.6% | -$8.00 |
| $18.44 | +32.7% | -$8.00 |
| $21.52 | +54.8% | -$8.00 |
| $24.59 | +76.9% | -$8.00 |
| $27.66 | +99.0% | -$8.00 |
When traders use butterfly on UPSG
Butterflies on UPSG are pinning bets - traders use them when they expect UPSG 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.
UPSG thesis for this butterfly
The market-implied 1-standard-deviation range for UPSG extends from approximately $9.17 on the downside to $18.63 on the upside. A UPSG long call butterfly is a pinning play: it pays maximum at the middle strike if UPSG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, UPSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UPSG-specific events.
UPSG 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. UPSG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UPSG alongside the broader basket even when UPSG-specific fundamentals are unchanged. Always rebuild the position from current UPSG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UPSG?
- A butterfly on UPSG is the butterfly strategy applied to UPSG (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 UPSG etf trading near $13.90, the strikes shown on this page are snapped to the nearest listed UPSG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UPSG 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 UPSG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 118.70%), the computed maximum profit is $89.48 per contract and the computed maximum loss is -$8.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UPSG butterfly?
- The breakeven for the UPSG butterfly priced on this page is roughly $13.08 and $14.92 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 UPSG market-implied 1-standard-deviation expected move is approximately 34.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UPSG?
- Butterflies on UPSG are pinning bets - traders use them when they expect UPSG 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 UPSG implied volatility affect this butterfly?
- Current UPSG ATM IV is 118.70%; IV rank context is unavailable in the current snapshot.