UUUG Butterfly Strategy
UUUG (Leverage Shares 2x Long UUUU Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Leverage Shares 2x Long UUUU Daily ETF (UUUG) is a 2x Daily Leveraged (Bull) ETF designed for active traders seeking to magnify short-term results. The UUUG ETF aims to achieve two times (200%) the daily performance of UUUU stock, minus fees and expenses.
UUUG (Leverage Shares 2x Long UUUU Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.1M, a beta of 4.14 versus the broader market, a 52-week range of 8.18-30, average daily share volume of 356K, a public-listing history dating back to 2026. These structural characteristics shape how UUUG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.14 indicates UUUG 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 UUUG?
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 UUUG snapshot
As of May 15, 2026, spot at $9.44, ATM IV 190.30%, expected move 54.56%. The butterfly on UUUG 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 34-day expiry.
Why this butterfly structure on UUUG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for UUUG is inferred from ATM IV at 190.30% alone, with a market-implied 1-standard-deviation move of approximately 54.56% (roughly $5.15 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UUUG expiries trade a higher absolute premium for lower per-day decay. Position sizing on UUUG should anchor to the underlying notional of $9.44 per share and to the trader's directional view on UUUG stock.
UUUG butterfly setup
The UUUG 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 UUUG near $9.44, 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 UUUG chain at a 34-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 UUUG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.00 | $2.23 |
| Sell 2 | Call | $9.00 | $2.23 |
| Buy 1 | Call | $10.00 | $2.18 |
UUUG butterfly risk and reward
- Net Premium / Debit
- +$5.00
- Max Profit (per contract)
- $5.00
- Max Loss (per contract)
- -$95.00
- Breakeven(s)
- $9.05
- Risk / Reward Ratio
- 0.053
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.
UUUG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UUUG. 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% | +$5.00 |
| $2.10 | -77.8% | +$5.00 |
| $4.18 | -55.7% | +$5.00 |
| $6.27 | -33.6% | +$5.00 |
| $8.35 | -11.5% | +$5.00 |
| $10.44 | +10.6% | -$95.00 |
| $12.53 | +32.7% | -$95.00 |
| $14.61 | +54.8% | -$95.00 |
| $16.70 | +76.9% | -$95.00 |
| $18.79 | +99.0% | -$95.00 |
When traders use butterfly on UUUG
Butterflies on UUUG are pinning bets - traders use them when they expect UUUG 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.
UUUG thesis for this butterfly
The market-implied 1-standard-deviation range for UUUG extends from approximately $4.29 on the downside to $14.59 on the upside. A UUUG long call butterfly is a pinning play: it pays maximum at the middle strike if UUUG 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, UUUG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UUUG-specific events.
UUUG 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. UUUG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UUUG alongside the broader basket even when UUUG-specific fundamentals are unchanged. Always rebuild the position from current UUUG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UUUG?
- A butterfly on UUUG is the butterfly strategy applied to UUUG (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 UUUG stock trading near $9.44, the strikes shown on this page are snapped to the nearest listed UUUG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UUUG 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 UUUG butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 190.30%), the computed maximum profit is $5.00 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UUUG butterfly?
- The breakeven for the UUUG butterfly priced on this page is roughly $9.05 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 UUUG market-implied 1-standard-deviation expected move is approximately 54.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UUUG?
- Butterflies on UUUG are pinning bets - traders use them when they expect UUUG 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 UUUG implied volatility affect this butterfly?
- Current UUUG ATM IV is 190.30%; IV rank context is unavailable in the current snapshot.