VOLT Butterfly Strategy
VOLT (Tema Electrification ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Under normal circumstances, the fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, common and preferred stocks of publicly listed companies that are directly or indirectly economically tied to global electrification. The fund is non-diversified.
VOLT (Tema Electrification ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $452.1M, a trailing P/E of 644.73, a beta of 1.23 versus the broader market, a 52-week range of 23-41.75, average daily share volume of 299K, a public-listing history dating back to 2024. These structural characteristics shape how VOLT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places VOLT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 644.73 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. VOLT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on VOLT?
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 VOLT snapshot
As of May 15, 2026, spot at $39.69, ATM IV 32.20%, IV rank 2.48%, expected move 9.23%. The butterfly on VOLT 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 VOLT specifically: VOLT IV at 32.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a VOLT butterfly, with a market-implied 1-standard-deviation move of approximately 9.23% (roughly $3.66 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 VOLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on VOLT should anchor to the underlying notional of $39.69 per share and to the trader's directional view on VOLT etf.
VOLT butterfly setup
The VOLT 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 VOLT near $39.69, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VOLT 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 VOLT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $38.00 | $2.53 |
| Sell 2 | Call | $40.00 | $1.56 |
| Buy 1 | Call | $42.00 | $0.65 |
VOLT butterfly risk and reward
- Net Premium / Debit
- -$5.50
- Max Profit (per contract)
- $183.94
- Max Loss (per contract)
- -$5.50
- Breakeven(s)
- $37.97, $42.09
- Risk / Reward Ratio
- 33.444
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.
VOLT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VOLT. 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% | -$5.50 |
| $8.78 | -77.9% | -$5.50 |
| $17.56 | -55.8% | -$5.50 |
| $26.33 | -33.7% | -$5.50 |
| $35.11 | -11.5% | -$5.50 |
| $43.88 | +10.6% | -$5.50 |
| $52.66 | +32.7% | -$5.50 |
| $61.43 | +54.8% | -$5.50 |
| $70.21 | +76.9% | -$5.50 |
| $78.98 | +99.0% | -$5.50 |
When traders use butterfly on VOLT
Butterflies on VOLT are pinning bets - traders use them when they expect VOLT 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.
VOLT thesis for this butterfly
The market-implied 1-standard-deviation range for VOLT extends from approximately $36.03 on the downside to $43.35 on the upside. A VOLT long call butterfly is a pinning play: it pays maximum at the middle strike if VOLT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VOLT IV rank near 2.48% 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 VOLT at 32.20%. As a Financial Services name, VOLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VOLT-specific events.
VOLT 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. VOLT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VOLT alongside the broader basket even when VOLT-specific fundamentals are unchanged. Always rebuild the position from current VOLT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VOLT?
- A butterfly on VOLT is the butterfly strategy applied to VOLT (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 VOLT etf trading near $39.69, the strikes shown on this page are snapped to the nearest listed VOLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VOLT 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 VOLT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 32.20%), the computed maximum profit is $183.94 per contract and the computed maximum loss is -$5.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VOLT butterfly?
- The breakeven for the VOLT butterfly priced on this page is roughly $37.97 and $42.09 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 VOLT market-implied 1-standard-deviation expected move is approximately 9.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VOLT?
- Butterflies on VOLT are pinning bets - traders use them when they expect VOLT 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 VOLT implied volatility affect this butterfly?
- VOLT ATM IV is at 32.20% with IV rank near 2.48%, 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.