YINN Butterfly Strategy
YINN (Direxion Daily FTSE China Bull 3X Shares), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Direxion Shares ETF Trust - Direxion Daily FTSE China Bull 3X ETF is an exchange traded fund launched by Direxion Investments. It is managed by Rafferty Asset Management, LLC. The fund invests in public equity markets of China. The fund invests directly, through derivatives and through other funds in stocks of companies operating across diversified sectors. The fund uses derivatives such as futures, swaps to create its portfolio. The fund invests in growth and value stocks of large-cap companies.
YINN (Direxion Daily FTSE China Bull 3X Shares) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $898.5M, a beta of 1.03 versus the broader market, a 52-week range of 20.69-57.71, average daily share volume of 2.0M, a public-listing history dating back to 2009. These structural characteristics shape how YINN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places YINN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. YINN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on YINN?
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.
YINN snapshot
As of August 14, 2026, spot at $28.20, ATM IV 58.77%, IV rank 16.65%, expected move 16.85%. The butterfly on YINN 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 28-day expiry.
Why this butterfly structure on YINN specifically: YINN IV at 58.77% is on the cheap side of its 1-year range, which favors premium-buying structures like a YINN butterfly, with a market-implied 1-standard-deviation move of approximately 16.85% (roughly $4.75 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YINN expiries trade a higher absolute premium for lower per-day decay. Position sizing on YINN should anchor to the underlying notional of $28.20 per share and to the trader's directional view on YINN etf.
YINN butterfly setup
The YINN 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 YINN at $28.20 on that close, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YINN chain at a 28-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 YINN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $27.00 | $2.47 |
| Sell 2 | Call | $28.00 | $1.80 |
| Buy 1 | Call | $29.50 | $1.27 |
YINN butterfly risk and reward
- Net Premium / Debit
- -$15.00
- Max Profit (per contract)
- $78.67
- Max Loss (per contract)
- -$65.00
- Breakeven(s)
- $27.13, $28.85
- Risk / Reward Ratio
- 1.210
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.
YINN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on YINN. 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% | -$15.00 |
| $6.24 | -77.9% | -$15.00 |
| $12.48 | -55.8% | -$15.00 |
| $18.71 | -33.6% | -$15.00 |
| $24.95 | -11.5% | -$15.00 |
| $31.18 | +10.6% | -$65.00 |
| $37.41 | +32.7% | -$65.00 |
| $43.65 | +54.8% | -$65.00 |
| $49.88 | +76.9% | -$65.00 |
| $56.12 | +99.0% | -$65.00 |
When traders use butterfly on YINN
Butterflies on YINN are pinning bets - traders use them when they expect YINN 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.
YINN thesis for this butterfly
The market-implied 1-standard-deviation range for YINN extends from approximately $23.45 on the downside to $32.95 on the upside. A YINN long call butterfly is a pinning play: it pays maximum at the middle strike if YINN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current YINN IV rank near 16.65% 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 YINN at 58.77%. As a Financial Services name, YINN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YINN-specific events.
YINN 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. YINN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YINN alongside the broader basket even when YINN-specific fundamentals are unchanged. Always rebuild the position from current YINN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on YINN?
- A butterfly on YINN is the butterfly strategy applied to YINN (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 YINN etf at $28.20 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed YINN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are YINN 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 YINN butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.77%), the computed maximum profit is $78.67 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a YINN butterfly?
- The breakeven for the YINN butterfly priced on this page is roughly $27.13 and $28.85 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 YINN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on YINN?
- Butterflies on YINN are pinning bets - traders use them when they expect YINN 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 YINN implied volatility affect this butterfly?
- YINN ATM IV is at 58.77% with IV rank near 16.65%, 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.