WMTI Butterfly Strategy
WMTI (REX WMT Growth & Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
Under typical market circumstances, this exchange-traded fund (ETF) allocates a minimum of 80% of its total capital (inclusive of borrowed funds) to investments directly in WMT stock, instruments providing exposure to WMT, or securities designed to yield income from WMT-related positions. Its principal strategy for achieving this notional WMT exposure involves utilizing various options contracts on WMT, encompassing both conventional exchange-traded options and customizable Flexible EXchange® (FLEX) Options. Investors should be aware that this fund is classified as non-diversified.
WMTI (REX WMT Growth & Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $10.1M, a beta of 0.28 versus the broader market, a 52-week range of 20.13-30.34, average daily share volume of 35K, a public-listing history dating back to 2025. These structural characteristics shape how WMTI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.28 indicates WMTI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WMTI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on WMTI?
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.
WMTI snapshot
As of August 14, 2026, spot at $21.55, ATM IV 10.00%, IV rank 0.41%, expected move 2.87%. The butterfly on WMTI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 126-day expiry.
Why this butterfly structure on WMTI specifically: WMTI IV at 10.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a WMTI butterfly, with a market-implied 1-standard-deviation move of approximately 2.87% (roughly $0.62 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WMTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WMTI should anchor to the underlying notional of $21.55 per share and to the trader's directional view on WMTI etf.
WMTI butterfly setup
The WMTI butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WMTI at $21.55 on that close, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WMTI chain at a 126-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 WMTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $20.00 | $1.58 |
| Sell 2 | Call | $22.00 | $0.95 |
| Buy 1 | Call | $23.00 | $0.60 |
WMTI butterfly risk and reward
- Net Premium / Debit
- -$27.50
- Max Profit (per contract)
- $162.87
- Max Loss (per contract)
- -$27.50
- Breakeven(s)
- $20.28
- Risk / Reward Ratio
- 5.922
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.
WMTI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WMTI. 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% | -$27.50 |
| $4.77 | -77.8% | -$27.50 |
| $9.54 | -55.7% | -$27.50 |
| $14.30 | -33.6% | -$27.50 |
| $19.06 | -11.5% | -$27.50 |
| $23.83 | +10.6% | +$72.50 |
| $28.59 | +32.7% | +$72.50 |
| $33.36 | +54.8% | +$72.50 |
| $38.12 | +76.9% | +$72.50 |
| $42.88 | +99.0% | +$72.50 |
When traders use butterfly on WMTI
Butterflies on WMTI are pinning bets - traders use them when they expect WMTI 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.
WMTI thesis for this butterfly
The market-implied 1-standard-deviation range for WMTI extends from approximately $20.93 on the downside to $22.17 on the upside. A WMTI long call butterfly is a pinning play: it pays maximum at the middle strike if WMTI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WMTI IV rank near 0.41% 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 WMTI at 10.00%. As a Financial Services name, WMTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WMTI-specific events.
WMTI 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. WMTI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WMTI alongside the broader basket even when WMTI-specific fundamentals are unchanged. Always rebuild the position from current WMTI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WMTI?
- A butterfly on WMTI is the butterfly strategy applied to WMTI (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 WMTI etf at $21.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WMTI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WMTI 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 WMTI butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.00%), the computed maximum profit is $162.87 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WMTI butterfly?
- The breakeven for the WMTI butterfly priced on this page is roughly $20.28 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The WMTI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WMTI?
- Butterflies on WMTI are pinning bets - traders use them when they expect WMTI 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 WMTI implied volatility affect this butterfly?
- WMTI ATM IV is at 10.00% with IV rank near 0.41%, 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.