WDNA Butterfly Strategy
WDNA (WisdomTree BioRevolution Fund), in the Financial Services sector, (Asset Management industry), listed on CBOE.
This fund primarily aims to meet its investment goals by employing a representative sampling method. This means it selects a portion of the securities from its benchmark index, ensuring that this smaller selection closely reflects the broader index's risk profile, expected returns, and other key characteristics. The benchmark index itself is crafted to invest in global, exchange-listed companies that are poised for significant transformation through breakthroughs in genetic research and biotechnology. It's important to note that this fund is categorized as non-diversified.
WDNA (WisdomTree BioRevolution Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.6M, a beta of 1.30 versus the broader market, a 52-week range of 13.29-20.57, average daily share volume of 1K, a public-listing history dating back to 2021. These structural characteristics shape how WDNA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places WDNA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WDNA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on WDNA?
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 WDNA snapshot
As of June 30, 2026, spot at $20.96, ATM IV 40.80%, IV rank 9.39%, expected move 11.70%. The butterfly on WDNA 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 17-day expiry.
Why this butterfly structure on WDNA specifically: WDNA IV at 40.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a WDNA butterfly, with a market-implied 1-standard-deviation move of approximately 11.70% (roughly $2.45 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WDNA expiries trade a higher absolute premium for lower per-day decay. Position sizing on WDNA should anchor to the underlying notional of $20.96 per share and to the trader's directional view on WDNA etf.
WDNA butterfly setup
The WDNA 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 WDNA near $20.96, the first option leg uses a $19.91 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WDNA chain at a 17-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 WDNA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $19.91 | N/A |
| Sell 2 | Call | $20.96 | N/A |
| Buy 1 | Call | $22.01 | N/A |
WDNA butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
WDNA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WDNA. 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.
When traders use butterfly on WDNA
Butterflies on WDNA are pinning bets - traders use them when they expect WDNA 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.
WDNA thesis for this butterfly
The market-implied 1-standard-deviation range for WDNA extends from approximately $18.51 on the downside to $23.41 on the upside. A WDNA long call butterfly is a pinning play: it pays maximum at the middle strike if WDNA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WDNA IV rank near 9.39% 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 WDNA at 40.80%. As a Financial Services name, WDNA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WDNA-specific events.
WDNA 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. WDNA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WDNA alongside the broader basket even when WDNA-specific fundamentals are unchanged. Always rebuild the position from current WDNA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WDNA?
- A butterfly on WDNA is the butterfly strategy applied to WDNA (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 WDNA etf trading near $20.96, the strikes shown on this page are snapped to the nearest listed WDNA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WDNA 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 WDNA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 40.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WDNA butterfly?
- The breakeven for the WDNA 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 WDNA market-implied 1-standard-deviation expected move is approximately 11.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WDNA?
- Butterflies on WDNA are pinning bets - traders use them when they expect WDNA 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 WDNA implied volatility affect this butterfly?
- WDNA ATM IV is at 40.80% with IV rank near 9.39%, 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.