CIBR Butterfly Strategy
CIBR (First Trust Nasdaq Cybersecurity ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The First Trust Nasdaq Cybersecurity ETF functions as an exchange-traded fund. Its core purpose is to closely mirror the financial returns—both in terms of price appreciation and income generated—of a particular stock index called the Nasdaq CTA Cybersecurity Index. This performance matching is calculated before the ETF's own management fees and operational costs are factored in.
CIBR (First Trust Nasdaq Cybersecurity ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $10.91B, a beta of 1.04 versus the broader market, a 52-week range of 60.07-104.25, average daily share volume of 1.6M, a public-listing history dating back to 2015. These structural characteristics shape how CIBR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.04 places CIBR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CIBR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CIBR?
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.
CIBR snapshot
As of September 29, 2026, spot at $101.73, ATM IV 34.40%, IV rank 73.41%, expected move 9.86%. The butterfly on CIBR below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this butterfly structure on CIBR specifically: CIBR IV at 34.40% is rich versus its 1-year range, which makes a premium-buying CIBR butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 9.86% (roughly $10.03 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CIBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CIBR should anchor to the underlying notional of $101.73 per share and to the trader's directional view on CIBR etf.
CIBR butterfly setup
The CIBR butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CIBR at $101.73 on that close, the first option leg uses a $97.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CIBR chain at a 17-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 CIBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $97.00 | $5.90 |
| Sell 2 | Call | $102.00 | $2.80 |
| Buy 1 | Call | $107.00 | $1.18 |
CIBR butterfly risk and reward
- Net Premium / Debit
- -$147.50
- Max Profit (per contract)
- $327.88
- Max Loss (per contract)
- -$147.50
- Breakeven(s)
- $98.48, $105.53
- Risk / Reward Ratio
- 2.223
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.
CIBR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CIBR. 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% | -$147.50 |
| $22.50 | -77.9% | -$147.50 |
| $44.99 | -55.8% | -$147.50 |
| $67.49 | -33.7% | -$147.50 |
| $89.98 | -11.6% | -$147.50 |
| $112.47 | +10.6% | -$147.50 |
| $134.96 | +32.7% | -$147.50 |
| $157.45 | +54.8% | -$147.50 |
| $179.95 | +76.9% | -$147.50 |
| $202.44 | +99.0% | -$147.50 |
When traders use butterfly on CIBR
Butterflies on CIBR are pinning bets - traders use them when they expect CIBR 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.
CIBR thesis for this butterfly
The market-implied 1-standard-deviation range for CIBR extends from approximately $91.70 on the downside to $111.76 on the upside. A CIBR long call butterfly is a pinning play: it pays maximum at the middle strike if CIBR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CIBR IV rank near 73.41% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CIBR at 34.40%. As a Financial Services name, CIBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CIBR-specific events.
CIBR 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. CIBR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CIBR alongside the broader basket even when CIBR-specific fundamentals are unchanged. Always rebuild the position from current CIBR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CIBR?
- A butterfly on CIBR is the butterfly strategy applied to CIBR (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 CIBR etf at $101.73 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed CIBR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CIBR 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 CIBR butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.40%), the computed maximum profit is $327.88 per contract and the computed maximum loss is -$147.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CIBR butterfly?
- The breakeven for the CIBR butterfly priced on this page is roughly $98.48 and $105.53 at expiration, derived from the September 29, 2026 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 CIBR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CIBR?
- Butterflies on CIBR are pinning bets - traders use them when they expect CIBR 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 CIBR implied volatility affect this butterfly?
- CIBR ATM IV is at 34.40% with IV rank near 73.41%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.