CHPS Butterfly Strategy
CHPS (Xtrackers Semiconductor Select Equity ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Xtrackers Semiconductor Select Equity ETF (the “fund”) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Semiconductor ESG Screened Index (the “Underlying Index”).
CHPS (Xtrackers Semiconductor Select Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $19.6M, a beta of 2.13 versus the broader market, a 52-week range of 29.31-86.66, average daily share volume of 23K, a public-listing history dating back to 2023. These structural characteristics shape how CHPS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.13 indicates CHPS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CHPS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CHPS?
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 CHPS snapshot
As of May 15, 2026, spot at $82.32, ATM IV 43.70%, IV rank 4.26%, expected move 12.53%. The butterfly on CHPS 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 CHPS specifically: CHPS IV at 43.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CHPS butterfly, with a market-implied 1-standard-deviation move of approximately 12.53% (roughly $10.31 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 CHPS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHPS should anchor to the underlying notional of $82.32 per share and to the trader's directional view on CHPS etf.
CHPS butterfly setup
The CHPS 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 CHPS near $82.32, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHPS 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 CHPS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $5.50 |
| Sell 2 | Call | $80.00 | $5.50 |
| Buy 1 | Call | $85.00 | $3.15 |
CHPS butterfly risk and reward
- Net Premium / Debit
- +$235.00
- Max Profit (per contract)
- $235.00
- Max Loss (per contract)
- -$265.00
- Breakeven(s)
- $82.35
- Risk / Reward Ratio
- 0.887
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.
CHPS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CHPS. 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% | +$235.00 |
| $18.21 | -77.9% | +$235.00 |
| $36.41 | -55.8% | +$235.00 |
| $54.61 | -33.7% | +$235.00 |
| $72.81 | -11.6% | +$235.00 |
| $91.01 | +10.6% | -$265.00 |
| $109.21 | +32.7% | -$265.00 |
| $127.41 | +54.8% | -$265.00 |
| $145.61 | +76.9% | -$265.00 |
| $163.81 | +99.0% | -$265.00 |
When traders use butterfly on CHPS
Butterflies on CHPS are pinning bets - traders use them when they expect CHPS 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.
CHPS thesis for this butterfly
The market-implied 1-standard-deviation range for CHPS extends from approximately $72.01 on the downside to $92.63 on the upside. A CHPS long call butterfly is a pinning play: it pays maximum at the middle strike if CHPS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CHPS IV rank near 4.26% 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 CHPS at 43.70%. As a Financial Services name, CHPS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHPS-specific events.
CHPS 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. CHPS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHPS alongside the broader basket even when CHPS-specific fundamentals are unchanged. Always rebuild the position from current CHPS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CHPS?
- A butterfly on CHPS is the butterfly strategy applied to CHPS (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 CHPS etf trading near $82.32, the strikes shown on this page are snapped to the nearest listed CHPS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHPS 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 CHPS butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is $235.00 per contract and the computed maximum loss is -$265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CHPS butterfly?
- The breakeven for the CHPS butterfly priced on this page is roughly $82.35 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 CHPS market-implied 1-standard-deviation expected move is approximately 12.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CHPS?
- Butterflies on CHPS are pinning bets - traders use them when they expect CHPS 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 CHPS implied volatility affect this butterfly?
- CHPS ATM IV is at 43.70% with IV rank near 4.26%, 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.