DTCR Butterfly Strategy
DTCR (Global X - Data Center & Digital Infrastructure ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Global X Data Center & Digital Infrastructure ETF (DTCR) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Data Center REITs & Digital Infrastructure Index.
DTCR (Global X - Data Center & Digital Infrastructure ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $665.0M, a beta of 1.43 versus the broader market, a 52-week range of 17.03-31.115, average daily share volume of 888K, a public-listing history dating back to 2020. These structural characteristics shape how DTCR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates DTCR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. DTCR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DTCR?
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 DTCR snapshot
As of May 15, 2026, spot at $29.73, ATM IV 25.70%, IV rank 3.68%, expected move 7.37%. The butterfly on DTCR 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 DTCR specifically: DTCR IV at 25.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a DTCR butterfly, with a market-implied 1-standard-deviation move of approximately 7.37% (roughly $2.19 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 DTCR expiries trade a higher absolute premium for lower per-day decay. Position sizing on DTCR should anchor to the underlying notional of $29.73 per share and to the trader's directional view on DTCR etf.
DTCR butterfly setup
The DTCR 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 DTCR near $29.73, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DTCR 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 DTCR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.00 | $2.18 |
| Sell 2 | Call | $30.00 | $0.90 |
| Buy 1 | Call | $31.00 | $0.53 |
DTCR butterfly risk and reward
- Net Premium / Debit
- -$90.00
- Max Profit (per contract)
- $98.44
- Max Loss (per contract)
- -$90.00
- Breakeven(s)
- $28.90
- Risk / Reward Ratio
- 1.094
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.
DTCR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DTCR. 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% | -$90.00 |
| $6.58 | -77.9% | -$90.00 |
| $13.15 | -55.8% | -$90.00 |
| $19.73 | -33.6% | -$90.00 |
| $26.30 | -11.5% | -$90.00 |
| $32.87 | +10.6% | +$10.00 |
| $39.44 | +32.7% | +$10.00 |
| $46.02 | +54.8% | +$10.00 |
| $52.59 | +76.9% | +$10.00 |
| $59.16 | +99.0% | +$10.00 |
When traders use butterfly on DTCR
Butterflies on DTCR are pinning bets - traders use them when they expect DTCR 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.
DTCR thesis for this butterfly
The market-implied 1-standard-deviation range for DTCR extends from approximately $27.54 on the downside to $31.92 on the upside. A DTCR long call butterfly is a pinning play: it pays maximum at the middle strike if DTCR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DTCR IV rank near 3.68% 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 DTCR at 25.70%. As a Financial Services name, DTCR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DTCR-specific events.
DTCR 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. DTCR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DTCR alongside the broader basket even when DTCR-specific fundamentals are unchanged. Always rebuild the position from current DTCR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DTCR?
- A butterfly on DTCR is the butterfly strategy applied to DTCR (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 DTCR etf trading near $29.73, the strikes shown on this page are snapped to the nearest listed DTCR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DTCR 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 DTCR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 25.70%), the computed maximum profit is $98.44 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DTCR butterfly?
- The breakeven for the DTCR butterfly priced on this page is roughly $28.90 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 DTCR market-implied 1-standard-deviation expected move is approximately 7.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DTCR?
- Butterflies on DTCR are pinning bets - traders use them when they expect DTCR 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 DTCR implied volatility affect this butterfly?
- DTCR ATM IV is at 25.70% with IV rank near 3.68%, 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.