SPAX Butterfly Strategy
SPAX (T-Rex 2X Long SpaceX Daily Target ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Fund seeks daily investment results, before fees and expenses, of 200% of the daily performance of SpaceX. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day.
SPAX (T-Rex 2X Long SpaceX Daily Target ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $19.6M, a beta of -0.65 versus the broader market, a 52-week range of 5.36-28.05, average daily share volume of 2.6M, a public-listing history dating back to 2021. These structural characteristics shape how SPAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.65 indicates SPAX 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 SPAX?
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.
SPAX snapshot
As of August 14, 2026, spot at $9.09, ATM IV 130.60%, expected move 37.44%. The butterfly on SPAX 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 35-day expiry.
Why this butterfly structure on SPAX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SPAX is inferred from ATM IV at 130.60% alone, with a market-implied 1-standard-deviation move of approximately 37.44% (roughly $3.40 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPAX should anchor to the underlying notional of $9.09 per share and to the trader's directional view on SPAX stock.
SPAX butterfly setup
The SPAX 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 SPAX at $9.09 on that close, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPAX chain at a 35-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 SPAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.00 | $1.43 |
| Sell 2 | Call | $9.00 | $1.43 |
| Buy 1 | Call | $10.00 | $1.05 |
SPAX butterfly risk and reward
- Net Premium / Debit
- +$37.50
- Max Profit (per contract)
- $37.50
- Max Loss (per contract)
- -$62.50
- Breakeven(s)
- $9.38
- Risk / Reward Ratio
- 0.600
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.
SPAX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SPAX. 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% | +$37.50 |
| $2.02 | -77.8% | +$37.50 |
| $4.03 | -55.7% | +$37.50 |
| $6.04 | -33.6% | +$37.50 |
| $8.04 | -11.5% | +$37.50 |
| $10.05 | +10.6% | -$62.50 |
| $12.06 | +32.7% | -$62.50 |
| $14.07 | +54.8% | -$62.50 |
| $16.08 | +76.9% | -$62.50 |
| $18.09 | +99.0% | -$62.50 |
When traders use butterfly on SPAX
Butterflies on SPAX are pinning bets - traders use them when they expect SPAX 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.
SPAX thesis for this butterfly
The market-implied 1-standard-deviation range for SPAX extends from approximately $5.69 on the downside to $12.49 on the upside. A SPAX long call butterfly is a pinning play: it pays maximum at the middle strike if SPAX 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, SPAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPAX-specific events.
SPAX 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. SPAX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPAX alongside the broader basket even when SPAX-specific fundamentals are unchanged. Always rebuild the position from current SPAX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SPAX?
- A butterfly on SPAX is the butterfly strategy applied to SPAX (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 SPAX stock at $9.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SPAX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SPAX 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 SPAX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 130.60%), the computed maximum profit is $37.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SPAX butterfly?
- The breakeven for the SPAX butterfly priced on this page is roughly $9.38 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 SPAX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 37.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SPAX?
- Butterflies on SPAX are pinning bets - traders use them when they expect SPAX 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 SPAX implied volatility affect this butterfly?
- Current SPAX ATM IV is 130.60%; IV rank context is unavailable in the current snapshot.