CRTC Butterfly Strategy
CRTC (Xtrackers US National Critical Technologies ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Xtrackers US National Critical Technologies ETF (the “fund”) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Whitney U.S. Critical Technologies Index (the “Underlying Index”).
CRTC (Xtrackers US National Critical Technologies ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $121.5M, a beta of 0.94 versus the broader market, a 52-week range of 31.51-38.89, average daily share volume of 9K, a public-listing history dating back to 2023. These structural characteristics shape how CRTC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places CRTC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CRTC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on CRTC?
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 CRTC snapshot
As of May 15, 2026, spot at $38.27, ATM IV 9.40%, IV rank 4.28%, expected move 2.69%. The butterfly on CRTC 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 CRTC specifically: CRTC IV at 9.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a CRTC butterfly, with a market-implied 1-standard-deviation move of approximately 2.69% (roughly $1.03 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 CRTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRTC should anchor to the underlying notional of $38.27 per share and to the trader's directional view on CRTC etf.
CRTC butterfly setup
The CRTC 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 CRTC near $38.27, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRTC 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 CRTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $36.00 | $2.58 |
| Sell 2 | Call | $38.00 | $0.63 |
| Buy 1 | Call | $40.00 | $0.18 |
CRTC butterfly risk and reward
- Net Premium / Debit
- -$150.50
- Max Profit (per contract)
- $41.23
- Max Loss (per contract)
- -$150.50
- Breakeven(s)
- $37.51
- Risk / Reward Ratio
- 0.274
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.
CRTC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CRTC. 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% | -$150.50 |
| $8.47 | -77.9% | -$150.50 |
| $16.93 | -55.8% | -$150.50 |
| $25.39 | -33.7% | -$150.50 |
| $33.85 | -11.5% | -$150.50 |
| $42.31 | +10.6% | -$150.50 |
| $50.77 | +32.7% | -$150.50 |
| $59.23 | +54.8% | -$150.50 |
| $67.69 | +76.9% | -$150.50 |
| $76.16 | +99.0% | -$150.50 |
When traders use butterfly on CRTC
Butterflies on CRTC are pinning bets - traders use them when they expect CRTC 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.
CRTC thesis for this butterfly
The market-implied 1-standard-deviation range for CRTC extends from approximately $37.24 on the downside to $39.30 on the upside. A CRTC long call butterfly is a pinning play: it pays maximum at the middle strike if CRTC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CRTC IV rank near 4.28% 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 CRTC at 9.40%. As a Financial Services name, CRTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRTC-specific events.
CRTC 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. CRTC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRTC alongside the broader basket even when CRTC-specific fundamentals are unchanged. Always rebuild the position from current CRTC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CRTC?
- A butterfly on CRTC is the butterfly strategy applied to CRTC (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 CRTC etf trading near $38.27, the strikes shown on this page are snapped to the nearest listed CRTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRTC 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 CRTC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 9.40%), the computed maximum profit is $41.23 per contract and the computed maximum loss is -$150.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRTC butterfly?
- The breakeven for the CRTC butterfly priced on this page is roughly $37.51 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 CRTC market-implied 1-standard-deviation expected move is approximately 2.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CRTC?
- Butterflies on CRTC are pinning bets - traders use them when they expect CRTC 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 CRTC implied volatility affect this butterfly?
- CRTC ATM IV is at 9.40% with IV rank near 4.28%, 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.