WXET Butterfly Strategy
WXET (Teucrium 2x Daily Wheat ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
This Exchange Traded Fund (ETF) aims to primarily achieve its investment objective by strategically gaining exposure to wheat futures contracts. These contracts are exclusively traded on exchanges overseen by the Commodity Futures Trading Commission (CFTC). Additionally, the fund holds liquid assets such as cash, cash equivalents, or high-quality securities, which serve as collateral for its investments in wheat futures. This fund is considered non-diversified.
WXET (Teucrium 2x Daily Wheat ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $9.6M, a beta of -0.13 versus the broader market, a 52-week range of 14.52-28.83, average daily share volume of 20K, a public-listing history dating back to 2024. These structural characteristics shape how WXET etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.13 indicates WXET has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WXET pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on WXET?
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.
WXET snapshot
As of September 29, 2026, spot at $21.84, ATM IV 88.90%, expected move 25.49%. The butterfly on WXET 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 17-day expiry.
Why this butterfly structure on WXET specifically: IV rank is unavailable in the current snapshot, so regime-based timing for WXET is inferred from ATM IV at 88.90% alone, with a market-implied 1-standard-deviation move of approximately 25.49% (roughly $5.57 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 WXET expiries trade a higher absolute premium for lower per-day decay. Position sizing on WXET should anchor to the underlying notional of $21.84 per share and to the trader's directional view on WXET etf.
WXET butterfly setup
The WXET 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 WXET at $21.84 on that close, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WXET 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 WXET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $21.00 | $1.68 |
| Sell 2 | Call | $22.00 | $1.63 |
| Buy 1 | Call | $23.00 | $1.23 |
WXET butterfly risk and reward
- Net Premium / Debit
- +$35.50
- Max Profit (per contract)
- $130.97
- Max Loss (per contract)
- $35.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 3.689
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.
WXET butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WXET. 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% | +$35.50 |
| $4.84 | -77.8% | +$35.50 |
| $9.67 | -55.7% | +$35.50 |
| $14.49 | -33.6% | +$35.50 |
| $19.32 | -11.5% | +$35.50 |
| $24.15 | +10.6% | +$35.50 |
| $28.98 | +32.7% | +$35.50 |
| $33.80 | +54.8% | +$35.50 |
| $38.63 | +76.9% | +$35.50 |
| $43.46 | +99.0% | +$35.50 |
When traders use butterfly on WXET
Butterflies on WXET are pinning bets - traders use them when they expect WXET 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.
WXET thesis for this butterfly
The market-implied 1-standard-deviation range for WXET extends from approximately $16.27 on the downside to $27.41 on the upside. A WXET long call butterfly is a pinning play: it pays maximum at the middle strike if WXET settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, WXET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WXET-specific events.
WXET 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. WXET positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WXET alongside the broader basket even when WXET-specific fundamentals are unchanged. Always rebuild the position from current WXET chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WXET?
- A butterfly on WXET is the butterfly strategy applied to WXET (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 WXET etf at $21.84 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed WXET chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WXET 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 WXET butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 88.90%), the computed maximum profit is $130.97 per contract and the computed maximum loss is $35.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WXET butterfly?
- The breakeven for the WXET butterfly priced on this page is no defined breakeven on the modeled curve 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 WXET market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WXET?
- Butterflies on WXET are pinning bets - traders use them when they expect WXET 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 WXET implied volatility affect this butterfly?
- Current WXET ATM IV is 88.90%; IV rank context is unavailable in the current snapshot.