TRLV Butterfly Strategy
TRLV (Trulieve Cannabis Corp.), in the Healthcare sector, (Medical - Pharmaceuticals industry), listed on NYSE.
Trulieve Cannabis Corp. engages in the cultivation, processing, manufacturing, and retail distribution of medical and adult-use cannabis products. It cultivates and produces its products in-house and distributes to its branded stores, as well as directly to patients via home delivery. The company was founded by Kim Rivers & Jason Pernell on September 17, 1940 and is headquartered in Tallahassee, FL.
TRLV (Trulieve Cannabis Corp.) trades in the Healthcare sector, specifically Medical - Pharmaceuticals, with a market capitalization of approximately $1.55B, a beta of 1.72 versus the broader market, a 52-week range of 4.616-13.28, average daily share volume of 929K, a public-listing history dating back to 2018, approximately 5K full-time employees. These structural characteristics shape how TRLV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.72 indicates TRLV 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 TRLV?
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.
TRLV snapshot
As of August 14, 2026, spot at $9.56, ATM IV 83.80%, expected move 24.02%. The butterfly on TRLV 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 TRLV specifically: IV rank is unavailable in the current snapshot, so regime-based timing for TRLV is inferred from ATM IV at 83.80% alone, with a market-implied 1-standard-deviation move of approximately 24.02% (roughly $2.30 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 TRLV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRLV should anchor to the underlying notional of $9.56 per share and to the trader's directional view on TRLV stock.
TRLV butterfly setup
The TRLV 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 TRLV at $9.56 on that close, the first option leg uses a $9.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRLV 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 TRLV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.08 | N/A |
| Sell 2 | Call | $9.56 | N/A |
| Buy 1 | Call | $10.04 | N/A |
TRLV 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.
TRLV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TRLV. 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 TRLV
Butterflies on TRLV are pinning bets - traders use them when they expect TRLV 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.
TRLV thesis for this butterfly
The market-implied 1-standard-deviation range for TRLV extends from approximately $7.26 on the downside to $11.86 on the upside. A TRLV long call butterfly is a pinning play: it pays maximum at the middle strike if TRLV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Healthcare name, TRLV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRLV-specific events.
TRLV 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. TRLV positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TRLV alongside the broader basket even when TRLV-specific fundamentals are unchanged. Always rebuild the position from current TRLV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TRLV?
- A butterfly on TRLV is the butterfly strategy applied to TRLV (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 TRLV stock at $9.56 on the most recent close, the strikes shown on this page are snapped to the nearest listed TRLV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TRLV 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 TRLV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 83.80%), 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 TRLV butterfly?
- The breakeven for the TRLV 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 TRLV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TRLV?
- Butterflies on TRLV are pinning bets - traders use them when they expect TRLV 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 TRLV implied volatility affect this butterfly?
- Current TRLV ATM IV is 83.80%; IV rank context is unavailable in the current snapshot.