TII Butterfly Strategy
TII (Titan Mining Corporation), in the Basic Materials sector, (Industrial Materials industry), listed on AMEX.
Titan Mining Corporation functions as a natural resources enterprise, engaging in the acquisition, exploration, development, production, and extraction of mineral properties. Its exploratory efforts are primarily aimed at discovering deposits of zinc, graphite, and iron-oxide copper gold. The company's principal holding is the Empire State Mine project, an extensive site spanning approximately 80,000 acres located within northern New York's Balmat-Edwards mining district. Established in 2012 as Triton Mining Corporation, the entity officially adopted the name Titan Mining Corporation in November 2016 and maintains its corporate headquarters in Vancouver, Canada.
TII (Titan Mining Corporation) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $260.5M, a beta of 0.01 versus the broader market, a 52-week range of 1.251-5.65, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 159 full-time employees. These structural characteristics shape how TII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.01 indicates TII has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TII?
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.
TII snapshot
As of August 14, 2026, spot at $2.74, ATM IV 96.00%, IV rank 28.63%, expected move 27.52%. The butterfly on TII below is built from the 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 TII specifically: TII IV at 96.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a TII butterfly, with a market-implied 1-standard-deviation move of approximately 27.52% (roughly $0.75 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 TII expiries trade a higher absolute premium for lower per-day decay. Position sizing on TII should anchor to the underlying notional of $2.74 per share and to the trader's directional view on TII stock.
TII butterfly setup
The TII 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 TII at $2.74 on that close, the first option leg uses a $2.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TII 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 TII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.60 | N/A |
| Sell 2 | Call | $2.74 | N/A |
| Buy 1 | Call | $2.88 | N/A |
TII 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.
TII butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TII. 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 TII
Butterflies on TII are pinning bets - traders use them when they expect TII 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.
TII thesis for this butterfly
The market-implied 1-standard-deviation range for TII extends from approximately $1.99 on the downside to $3.49 on the upside. A TII long call butterfly is a pinning play: it pays maximum at the middle strike if TII settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TII IV rank near 28.63% 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 TII at 96.00%. As a Basic Materials name, TII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TII-specific events.
TII 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. TII positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TII alongside the broader basket even when TII-specific fundamentals are unchanged. Always rebuild the position from current TII chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TII?
- A butterfly on TII is the butterfly strategy applied to TII (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 TII stock at $2.74 on the most recent close, the strikes shown on this page are snapped to the nearest listed TII chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TII 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 TII butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 96.00%), 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 TII butterfly?
- The breakeven for the TII butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 TII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TII?
- Butterflies on TII are pinning bets - traders use them when they expect TII 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 TII implied volatility affect this butterfly?
- TII ATM IV is at 96.00% with IV rank near 28.63%, 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.