WR Butterfly Strategy
WR (Corgi U.S. War Machine ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
WR provides actively managed exposure to companies tied to defense spending, national security priorities, and energy security themes. The strategy focuses on businesses that may benefit from rising geopolitical tensions, increased military procurement, supply chain security concerns, and energy supply disruptions. Holdings may span defense systems, aerospace and military technologies, cybersecurity and intelligence platforms, as well as oil, gas, and related infrastructure businesses connected to global energy markets. Security selection combines thematic, quantitative, and bottom-up analysis, with emphasis placed on revenue exposure and positioning within these interconnected industries. The portfolio may include both US and international firms and can invest in less liquid opportunities aligned with the theme.
WR (Corgi U.S. War Machine ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.5M, a trailing P/E of 9.84, a beta of 0.00 versus the broader market, a 52-week range of 23.85-27.5, average daily share volume of 4K, a public-listing history dating back to 2026. These structural characteristics shape how WR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates WR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.84 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on WR?
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.
WR snapshot
As of August 14, 2026, spot at $27.79, ATM IV 41.40%, IV rank 7.41%, expected move 11.87%. The butterfly on WR 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 WR specifically: WR IV at 41.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a WR butterfly, with a market-implied 1-standard-deviation move of approximately 11.87% (roughly $3.30 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 WR expiries trade a higher absolute premium for lower per-day decay. Position sizing on WR should anchor to the underlying notional of $27.79 per share and to the trader's directional view on WR stock.
WR butterfly setup
The WR 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 WR at $27.79 on that close, the first option leg uses a $26.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WR 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 WR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.40 | N/A |
| Sell 2 | Call | $27.79 | N/A |
| Buy 1 | Call | $29.18 | N/A |
WR 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.
WR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on WR. 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 WR
Butterflies on WR are pinning bets - traders use them when they expect WR 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.
WR thesis for this butterfly
The market-implied 1-standard-deviation range for WR extends from approximately $24.49 on the downside to $31.09 on the upside. A WR long call butterfly is a pinning play: it pays maximum at the middle strike if WR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current WR IV rank near 7.41% 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 WR at 41.40%. As a Financial Services name, WR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WR-specific events.
WR 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. WR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WR alongside the broader basket even when WR-specific fundamentals are unchanged. Always rebuild the position from current WR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on WR?
- A butterfly on WR is the butterfly strategy applied to WR (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 WR stock at $27.79 on the most recent close, the strikes shown on this page are snapped to the nearest listed WR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are WR 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 WR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.40%), 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 WR butterfly?
- The breakeven for the WR 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 WR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on WR?
- Butterflies on WR are pinning bets - traders use them when they expect WR 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 WR implied volatility affect this butterfly?
- WR ATM IV is at 41.40% with IV rank near 7.41%, 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.