DISK Butterfly Strategy
DISK (Tema Memory ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
DISK Network Corporation is a connectivity company that has been a disruptive force in driving innovation and value for consumers since 1980. Through its subsidiaries, the company provides television entertainment and award-winning technology to millions of customers with its satellite DISH TV and streaming SLING TV services. In 2020, the company became a nationwide U.S. wireless carrier through the acquisition of Boost Mobile and is building the nation's first cloud-native, OpenRAN-based 5G broadband network.
DISK (Tema Memory ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $9.6M, a beta of 0.00 versus the broader market, a 52-week range of 28.35-50.46, average daily share volume of 310K, a public-listing history dating back to 2026, approximately 14K full-time employees. These structural characteristics shape how DISK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates DISK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on DISK?
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.
DISK snapshot
As of September 29, 2026, spot at $38.95, ATM IV 55.40%, expected move 15.88%. The butterfly on DISK 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 DISK specifically: IV rank is unavailable in the current snapshot, so regime-based timing for DISK is inferred from ATM IV at 55.40% alone, with a market-implied 1-standard-deviation move of approximately 15.88% (roughly $6.19 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 DISK expiries trade a higher absolute premium for lower per-day decay. Position sizing on DISK should anchor to the underlying notional of $38.95 per share and to the trader's directional view on DISK stock.
DISK butterfly setup
The DISK 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 DISK at $38.95 on that close, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DISK 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 DISK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $3.05 |
| Sell 2 | Call | $39.00 | $1.85 |
| Buy 1 | Call | $41.00 | $1.20 |
DISK butterfly risk and reward
- Net Premium / Debit
- -$55.00
- Max Profit (per contract)
- $129.93
- Max Loss (per contract)
- -$55.00
- Breakeven(s)
- $37.55, $40.45
- Risk / Reward Ratio
- 2.362
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.
DISK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DISK. 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% | -$55.00 |
| $8.62 | -77.9% | -$55.00 |
| $17.23 | -55.8% | -$55.00 |
| $25.84 | -33.7% | -$55.00 |
| $34.45 | -11.5% | -$55.00 |
| $43.06 | +10.6% | -$55.00 |
| $51.68 | +32.7% | -$55.00 |
| $60.29 | +54.8% | -$55.00 |
| $68.90 | +76.9% | -$55.00 |
| $77.51 | +99.0% | -$55.00 |
When traders use butterfly on DISK
Butterflies on DISK are pinning bets - traders use them when they expect DISK 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.
DISK thesis for this butterfly
The market-implied 1-standard-deviation range for DISK extends from approximately $32.76 on the downside to $45.14 on the upside. A DISK long call butterfly is a pinning play: it pays maximum at the middle strike if DISK 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, DISK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DISK-specific events.
DISK 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. DISK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DISK alongside the broader basket even when DISK-specific fundamentals are unchanged. Always rebuild the position from current DISK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DISK?
- A butterfly on DISK is the butterfly strategy applied to DISK (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 DISK stock at $38.95 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed DISK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DISK 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 DISK butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 55.40%), the computed maximum profit is $129.93 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DISK butterfly?
- The breakeven for the DISK butterfly priced on this page is roughly $37.55 and $40.45 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 DISK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DISK?
- Butterflies on DISK are pinning bets - traders use them when they expect DISK 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 DISK implied volatility affect this butterfly?
- Current DISK ATM IV is 55.40%; IV rank context is unavailable in the current snapshot.