ASHR Butterfly Strategy
ASHR (Xtrackers Harvest CSI 300 China A-Shares ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund will normally invest at least 80% of its total assets in securities of issuers that comprise the underlying index. The underlying index is designed to reflect the price fluctuation and performance of the China A-Share market and is composed of the 300 largest and most liquid stocks in the China A-Share market. It is non-diversified.
ASHR (Xtrackers Harvest CSI 300 China A-Shares ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.58B, a beta of 0.68 versus the broader market, a 52-week range of 27.42-37.33, average daily share volume of 4.5M, a public-listing history dating back to 2013. These structural characteristics shape how ASHR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates ASHR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ASHR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ASHR?
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 ASHR snapshot
As of June 30, 2026, spot at $36.66, ATM IV 25.17%, IV rank 45.45%, expected move 7.21%. The butterfly on ASHR 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 31-day expiry.
Why this butterfly structure on ASHR specifically: ASHR IV at 25.17% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 7.21% (roughly $2.64 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ASHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ASHR should anchor to the underlying notional of $36.66 per share and to the trader's directional view on ASHR etf.
ASHR butterfly setup
The ASHR 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 ASHR near $36.66, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ASHR chain at a 31-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 ASHR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $2.13 |
| Sell 2 | Call | $36.50 | $1.12 |
| Buy 1 | Call | $38.50 | $0.37 |
ASHR butterfly risk and reward
- Net Premium / Debit
- -$26.50
- Max Profit (per contract)
- $121.58
- Max Loss (per contract)
- -$76.50
- Breakeven(s)
- $35.27, $37.74
- Risk / Reward Ratio
- 1.589
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.
ASHR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ASHR. 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 | -100.0% | -$26.50 |
| $8.11 | -77.9% | -$26.50 |
| $16.22 | -55.8% | -$26.50 |
| $24.32 | -33.7% | -$26.50 |
| $32.43 | -11.5% | -$26.50 |
| $40.53 | +10.6% | -$76.50 |
| $48.64 | +32.7% | -$76.50 |
| $56.74 | +54.8% | -$76.50 |
| $64.85 | +76.9% | -$76.50 |
| $72.95 | +99.0% | -$76.50 |
When traders use butterfly on ASHR
Butterflies on ASHR are pinning bets - traders use them when they expect ASHR 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.
ASHR thesis for this butterfly
The market-implied 1-standard-deviation range for ASHR extends from approximately $34.02 on the downside to $39.30 on the upside. A ASHR long call butterfly is a pinning play: it pays maximum at the middle strike if ASHR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ASHR IV rank near 45.45% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ASHR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ASHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ASHR-specific events.
ASHR 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. ASHR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ASHR alongside the broader basket even when ASHR-specific fundamentals are unchanged. Always rebuild the position from current ASHR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ASHR?
- A butterfly on ASHR is the butterfly strategy applied to ASHR (etf). 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 ASHR etf trading near $36.66, the strikes shown on this page are snapped to the nearest listed ASHR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ASHR 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 ASHR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.17%), the computed maximum profit is $121.58 per contract and the computed maximum loss is -$76.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ASHR butterfly?
- The breakeven for the ASHR butterfly priced on this page is roughly $35.27 and $37.74 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 ASHR market-implied 1-standard-deviation expected move is approximately 7.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ASHR?
- Butterflies on ASHR are pinning bets - traders use them when they expect ASHR 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 ASHR implied volatility affect this butterfly?
- ASHR ATM IV is at 25.17% with IV rank near 45.45%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.