BULL Butterfly Strategy
BULL (Webull Corporation Class A Ordinary Shares), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Webull Corporation operates as a digital investment platform. The company offers trading services, wealth management product distribution, market data and information, user community, and investor education.
BULL (Webull Corporation Class A Ordinary Shares) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.76B, a trailing P/E of 149.19, a beta of 0.60 versus the broader market, a 52-week range of 4.5-18.32, average daily share volume of 12.3M, a public-listing history dating back to 2025, approximately 1K full-time employees. These structural characteristics shape how BULL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates BULL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 149.19 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a butterfly on BULL?
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 BULL snapshot
As of May 15, 2026, spot at $7.05, ATM IV 76.32%, IV rank 23.04%, expected move 21.88%. The butterfly on BULL 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 28-day expiry.
Why this butterfly structure on BULL specifically: BULL IV at 76.32% is on the cheap side of its 1-year range, which favors premium-buying structures like a BULL butterfly, with a market-implied 1-standard-deviation move of approximately 21.88% (roughly $1.54 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 BULL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BULL should anchor to the underlying notional of $7.05 per share and to the trader's directional view on BULL stock.
BULL butterfly setup
The BULL 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 BULL near $7.05, the first option leg uses a $6.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BULL 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 BULL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.50 | $0.89 |
| Sell 2 | Call | $7.00 | $0.67 |
| Buy 1 | Call | $7.50 | $0.43 |
BULL butterfly risk and reward
- Net Premium / Debit
- +$1.50
- Max Profit (per contract)
- $49.54
- Max Loss (per contract)
- $1.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 33.027
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.
BULL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BULL. 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% | +$1.50 |
| $1.57 | -77.8% | +$1.50 |
| $3.13 | -55.7% | +$1.50 |
| $4.68 | -33.6% | +$1.50 |
| $6.24 | -11.5% | +$1.50 |
| $7.80 | +10.6% | +$1.50 |
| $9.36 | +32.7% | +$1.50 |
| $10.91 | +54.8% | +$1.50 |
| $12.47 | +76.9% | +$1.50 |
| $14.03 | +99.0% | +$1.50 |
When traders use butterfly on BULL
Butterflies on BULL are pinning bets - traders use them when they expect BULL 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.
BULL thesis for this butterfly
The market-implied 1-standard-deviation range for BULL extends from approximately $5.51 on the downside to $8.59 on the upside. A BULL long call butterfly is a pinning play: it pays maximum at the middle strike if BULL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BULL IV rank near 23.04% 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 BULL at 76.32%. As a Technology name, BULL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BULL-specific events.
BULL 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. BULL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BULL alongside the broader basket even when BULL-specific fundamentals are unchanged. Always rebuild the position from current BULL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BULL?
- A butterfly on BULL is the butterfly strategy applied to BULL (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 BULL stock trading near $7.05, the strikes shown on this page are snapped to the nearest listed BULL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BULL 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 BULL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 76.32%), the computed maximum profit is $49.54 per contract and the computed maximum loss is $1.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BULL butterfly?
- The breakeven for the BULL 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 BULL market-implied 1-standard-deviation expected move is approximately 21.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BULL?
- Butterflies on BULL are pinning bets - traders use them when they expect BULL 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 BULL implied volatility affect this butterfly?
- BULL ATM IV is at 76.32% with IV rank near 23.04%, 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.