WGMI Butterfly Strategy
WGMI (CoinShares Bitcoin Mining ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on NASDAQ.
The CoinShares Bitcoin Mining ETF (WGMI) is an actively-managed ETF providing investors with the opportunity to gain targeted exposure to the Bitcoin mining industry. WGMI is managed by an expert team from CoinShares Funds LLC dba CoinShares (the “Adviser”), a wholly owned subsidiary of CoinShares International Limited, a leading publicly listed investment management firm specializing in digital assets.
WGMI (CoinShares Bitcoin Mining ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $295.6M, a beta of 4.47 versus the broader market, a 52-week range of 15.82-67.885, average daily share volume of 508K, a public-listing history dating back to 2022. These structural characteristics shape how WGMI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.47 indicates WGMI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. WGMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on WGMI?
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 WGMI snapshot
As of May 15, 2026, spot at $57.66, ATM IV 73.50%, IV rank 15.21%, expected move 21.07%. The butterfly on WGMI 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 WGMI specifically: WGMI IV at 73.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a WGMI butterfly, with a market-implied 1-standard-deviation move of approximately 21.07% (roughly $12.15 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 WGMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WGMI should anchor to the underlying notional of $57.66 per share and to the trader's directional view on WGMI etf.
WGMI butterfly setup
The WGMI 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 WGMI near $57.66, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WGMI 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 WGMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $55.00 | $6.95 |
| Sell 2 | Call | $58.00 | $5.25 |
| Buy 1 | Call | $61.00 | $3.55 |
WGMI butterfly risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $295.47
- Max Loss (per contract)
- -$0.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 649,750,594,990,962.500
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.
WGMI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WGMI. 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% | $0.00 |
| $12.76 | -77.9% | $0.00 |
| $25.51 | -55.8% | $0.00 |
| $38.25 | -33.7% | $0.00 |
| $51.00 | -11.5% | $0.00 |
| $63.75 | +10.6% | +$0.00 |
| $76.50 | +32.7% | +$0.00 |
| $89.24 | +54.8% | $0.00 |
| $101.99 | +76.9% | $0.00 |
| $114.74 | +99.0% | $0.00 |
When traders use butterfly on WGMI
Butterflies on WGMI are pinning bets - traders use them when they expect WGMI 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.
WGMI thesis for this butterfly
The market-implied 1-standard-deviation range for WGMI extends from approximately $45.51 on the downside to $69.81 on the upside. A WGMI long call butterfly is a pinning play: it pays maximum at the middle strike if WGMI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WGMI IV rank near 15.21% 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 WGMI at 73.50%. As a Financial Services name, WGMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WGMI-specific events.
WGMI 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. WGMI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WGMI alongside the broader basket even when WGMI-specific fundamentals are unchanged. Always rebuild the position from current WGMI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WGMI?
- A butterfly on WGMI is the butterfly strategy applied to WGMI (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 WGMI etf trading near $57.66, the strikes shown on this page are snapped to the nearest listed WGMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WGMI 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 WGMI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.50%), the computed maximum profit is $295.47 per contract and the computed maximum loss is -$0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WGMI butterfly?
- The breakeven for the WGMI 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 WGMI market-implied 1-standard-deviation expected move is approximately 21.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WGMI?
- Butterflies on WGMI are pinning bets - traders use them when they expect WGMI 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 WGMI implied volatility affect this butterfly?
- WGMI ATM IV is at 73.50% with IV rank near 15.21%, 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.