DTH Butterfly Strategy
DTH (WisdomTree International High Dividend Fund), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The WisdomTree International High Dividend Fund typically allocates at least 95% of its total assets (excluding any collateral from securities lending) to either the direct constituents of its benchmark index or investments that offer economic exposures highly similar to those components. This underlying index is fundamentally weighted and is composed of companies known for their high dividend yields, which are selected from the broader WisdomTree International Equity Index. It is important to note that this fund operates as a non-diversified investment vehicle.
DTH (WisdomTree International High Dividend Fund) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $629.5M, a beta of 0.77 versus the broader market, a 52-week range of 46.43-58.46, average daily share volume of 51K, a public-listing history dating back to 2006. These structural characteristics shape how DTH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places DTH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DTH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DTH?
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.
DTH snapshot
As of August 14, 2026, spot at $58.35, ATM IV 30.00%, IV rank 23.29%, expected move 8.60%. The butterfly on DTH below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on DTH specifically: DTH IV at 30.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a DTH butterfly, with a market-implied 1-standard-deviation move of approximately 8.60% (roughly $5.02 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on DTH should anchor to the underlying notional of $58.35 per share and to the trader's directional view on DTH etf.
DTH butterfly setup
The DTH butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DTH at $58.35 on that close, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DTH chain at a 35-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 DTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $55.00 | $3.35 |
| Sell 2 | Call | $58.00 | $2.47 |
| Buy 1 | Call | $61.00 | $1.21 |
DTH butterfly risk and reward
- Net Premium / Debit
- +$38.00
- Max Profit (per contract)
- $331.82
- Max Loss (per contract)
- $38.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 8.732
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.
DTH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DTH. 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% | +$38.00 |
| $12.91 | -77.9% | +$38.00 |
| $25.81 | -55.8% | +$38.00 |
| $38.71 | -33.7% | +$38.00 |
| $51.61 | -11.5% | +$38.00 |
| $64.51 | +10.6% | +$38.00 |
| $77.41 | +32.7% | +$38.00 |
| $90.31 | +54.8% | +$38.00 |
| $103.21 | +76.9% | +$38.00 |
| $116.11 | +99.0% | +$38.00 |
When traders use butterfly on DTH
Butterflies on DTH are pinning bets - traders use them when they expect DTH 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.
DTH thesis for this butterfly
The market-implied 1-standard-deviation range for DTH extends from approximately $53.33 on the downside to $63.37 on the upside. A DTH long call butterfly is a pinning play: it pays maximum at the middle strike if DTH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DTH IV rank near 23.29% 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 DTH at 30.00%. As a Financial Services name, DTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DTH-specific events.
DTH 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. DTH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DTH alongside the broader basket even when DTH-specific fundamentals are unchanged. Always rebuild the position from current DTH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DTH?
- A butterfly on DTH is the butterfly strategy applied to DTH (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 DTH etf at $58.35 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DTH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DTH 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 DTH butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.00%), the computed maximum profit is $331.82 per contract and the computed maximum loss is $38.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DTH butterfly?
- The breakeven for the DTH butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 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 DTH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DTH?
- Butterflies on DTH are pinning bets - traders use them when they expect DTH 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 DTH implied volatility affect this butterfly?
- DTH ATM IV is at 30.00% with IV rank near 23.29%, 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.