BTBT Butterfly Strategy
BTBT (Bit Digital, Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NASDAQ.
Bit Digital, Inc., along with its subsidiary entities, primarily focuses on the business of mining bitcoin. Additionally, the firm undertakes treasury management operations. The company was established in 2017 and was previously known as Golden Bull Limited before rebranding to Bit Digital, Inc. in September 2020. Its corporate headquarters are situated in New York, New York.
BTBT (Bit Digital, Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $694.9M, a beta of 4.02 versus the broader market, a 52-week range of 1.25-4.55, average daily share volume of 24.6M, a public-listing history dating back to 2018, approximately 54 full-time employees. These structural characteristics shape how BTBT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.02 indicates BTBT 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 BTBT?
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 BTBT snapshot
As of June 30, 2026, spot at $1.83, ATM IV 119.72%, IV rank 31.38%, expected move 34.32%. The butterfly on BTBT 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 31-day expiry.
Why this butterfly structure on BTBT specifically: BTBT IV at 119.72% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 34.32% (roughly $0.63 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BTBT expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTBT should anchor to the underlying notional of $1.83 per share and to the trader's directional view on BTBT stock.
BTBT butterfly setup
The BTBT 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 BTBT near $1.83, the first option leg uses a $1.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTBT chain at a 31-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 BTBT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.74 | N/A |
| Sell 2 | Call | $1.83 | N/A |
| Buy 1 | Call | $1.92 | N/A |
BTBT butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BTBT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BTBT. 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.
When traders use butterfly on BTBT
Butterflies on BTBT are pinning bets - traders use them when they expect BTBT 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.
BTBT thesis for this butterfly
The market-implied 1-standard-deviation range for BTBT extends from approximately $1.20 on the downside to $2.46 on the upside. A BTBT long call butterfly is a pinning play: it pays maximum at the middle strike if BTBT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BTBT IV rank near 31.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on BTBT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BTBT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTBT-specific events.
BTBT 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. BTBT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BTBT alongside the broader basket even when BTBT-specific fundamentals are unchanged. Always rebuild the position from current BTBT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BTBT?
- A butterfly on BTBT is the butterfly strategy applied to BTBT (stock). 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 BTBT stock trading near $1.83, the strikes shown on this page are snapped to the nearest listed BTBT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BTBT 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 BTBT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 119.72%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BTBT butterfly?
- The breakeven for the BTBT 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 BTBT market-implied 1-standard-deviation expected move is approximately 34.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BTBT?
- Butterflies on BTBT are pinning bets - traders use them when they expect BTBT 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 BTBT implied volatility affect this butterfly?
- BTBT ATM IV is at 119.72% with IV rank near 31.38%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.