SOXL Iron Butterfly — May 15, 2026

SOXL (DIREXION FDS DAILY SEMICONDUCTOR BULL 3X) presents a iron butterfly opportunity with very elevated implied volatility. IV Rank 89. IV 10146.0% trades 458.0pp above 30-day HV (9688.0%). This setup favors net premium sellers.

Sell the $65 ATM put and the $65 ATM call simultaneously (both at the same strike near the underlying), with long wings further out for defined risk. Higher max profit than a condor but a tighter profit window — ideal when you expect a stalling move into expiration. Underlying ~$69.00, 19 DTE. Max profit $440 per contract, max loss $60, 733.3% return on risk, 4% POP. Breakevens at $60.60 and $69.40.

Management: take profit at ~50% of max profit ($220). Cut at 2x credit ($880 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.

Underlying: SOXL @ ~$123.39 Expiration: May 15, 2026 (19 DTE) Legs:

• Sell SOXL May 15, 2026 $65 Put (delta -0.04, mid $0.89)
• Buy SOXL May 15, 2026 $60 Put (delta -0.03, mid $0.64)
• Sell SOXL May 15, 2026 $65 Call (delta 0.96, mid $63.70)
• Buy SOXL May 15, 2026 $70 Call (delta 0.95, mid $59.55)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~5.4% of mid) before sending.

Take profit at 50% of max profit ($220). Cut loss if position reaches 2x credit received ($880 loss). Roll if tested with > 14 DTE remaining.