WULX Butterfly Strategy
WULX (Investment Managers Series Trust II - Tradr 2x Long WULF Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
WULX uses swap agreements and listed call options to make bullish bets on the share price of TeraWulf Inc. (NASDAQ: WULF). The fund may also invest directly in WULF. TeraWulf Inc. owns and operates fully integrated Bitcoin mining facilities in the US, primarily powered by zero-carbon energy. It aims to generate domestically produced Bitcoin powered by nuclear, hydro, and solar energy. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in WULF price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
WULX (Investment Managers Series Trust II - Tradr 2x Long WULF Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.9M, a beta of 8.94 versus the broader market, a 52-week range of 12.295-68.49, average daily share volume of 268K, a public-listing history dating back to 2025. These structural characteristics shape how WULX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 8.94 indicates WULX 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 WULX?
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.
WULX snapshot
As of September 29, 2026, spot at $13.18, ATM IV 144.10%, IV rank 0.00%, expected move 41.31%. The butterfly on WULX below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this butterfly structure on WULX specifically: WULX IV at 144.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a WULX butterfly, with a market-implied 1-standard-deviation move of approximately 41.31% (roughly $5.44 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WULX expiries trade a higher absolute premium for lower per-day decay. Position sizing on WULX should anchor to the underlying notional of $13.18 per share and to the trader's directional view on WULX etf.
WULX butterfly setup
The WULX butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WULX at $13.18 on that close, 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 WULX chain at a 80-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 WULX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $4.05 |
| Sell 2 | Call | $13.00 | $4.05 |
| Buy 1 | Call | $14.00 | $3.65 |
WULX butterfly risk and reward
- Net Premium / Debit
- +$40.00
- Max Profit (per contract)
- $40.00
- Max Loss (per contract)
- -$60.00
- Breakeven(s)
- $13.40
- Risk / Reward Ratio
- 0.667
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.
WULX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WULX. 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% | +$40.00 |
| $2.92 | -77.8% | +$40.00 |
| $5.84 | -55.7% | +$40.00 |
| $8.75 | -33.6% | +$40.00 |
| $11.66 | -11.5% | +$40.00 |
| $14.58 | +10.6% | -$60.00 |
| $17.49 | +32.7% | -$60.00 |
| $20.40 | +54.8% | -$60.00 |
| $23.31 | +76.9% | -$60.00 |
| $26.23 | +99.0% | -$60.00 |
When traders use butterfly on WULX
Butterflies on WULX are pinning bets - traders use them when they expect WULX 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.
WULX thesis for this butterfly
The market-implied 1-standard-deviation range for WULX extends from approximately $7.74 on the downside to $18.62 on the upside. A WULX long call butterfly is a pinning play: it pays maximum at the middle strike if WULX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WULX IV rank near 0.00% 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 WULX at 144.10%. As a Financial Services name, WULX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WULX-specific events.
WULX 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. WULX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WULX alongside the broader basket even when WULX-specific fundamentals are unchanged. Always rebuild the position from current WULX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WULX?
- A butterfly on WULX is the butterfly strategy applied to WULX (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 WULX etf at $13.18 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed WULX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WULX 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 WULX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 144.10%), the computed maximum profit is $40.00 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WULX butterfly?
- The breakeven for the WULX butterfly priced on this page is roughly $13.40 at expiration, derived from the September 29, 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 WULX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 41.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WULX?
- Butterflies on WULX are pinning bets - traders use them when they expect WULX 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 WULX implied volatility affect this butterfly?
- WULX ATM IV is at 144.10% with IV rank near 0.00%, 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.