DUSA Butterfly Strategy
DUSA (Davis Select U.S. Equity ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Under normal market conditions, the fund will invest at least 80% of its net assets plus any borrowings for investment purposes in equity securities issued by U.S. companies. The fund's portfolio generally contains between 15 and 35 companies. It may invest a portion of its assets in financial services companies. The fund may also invest in mid- and small-capitalization companies, which the manager considers to be those companies with less than $10 billion in market capitalization. It may invest up to 20% of net assets in non-U.S. companies. The fund is non-diversified.
DUSA (Davis Select U.S. Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.17B, a beta of 0.95 versus the broader market, a 52-week range of 42.27-56.27, average daily share volume of 51K, a public-listing history dating back to 2017. These structural characteristics shape how DUSA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places DUSA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DUSA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DUSA?
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 DUSA snapshot
As of May 15, 2026, spot at $55.80, ATM IV 22.00%, IV rank 13.15%, expected move 6.31%. The butterfly on DUSA 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 DUSA specifically: DUSA IV at 22.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a DUSA butterfly, with a market-implied 1-standard-deviation move of approximately 6.31% (roughly $3.52 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 DUSA expiries trade a higher absolute premium for lower per-day decay. Position sizing on DUSA should anchor to the underlying notional of $55.80 per share and to the trader's directional view on DUSA etf.
DUSA butterfly setup
The DUSA 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 DUSA near $55.80, the first option leg uses a $53.01 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DUSA 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 DUSA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $53.01 | N/A |
| Sell 2 | Call | $55.80 | N/A |
| Buy 1 | Call | $58.59 | N/A |
DUSA butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
DUSA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DUSA. 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.
When traders use butterfly on DUSA
Butterflies on DUSA are pinning bets - traders use them when they expect DUSA 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.
DUSA thesis for this butterfly
The market-implied 1-standard-deviation range for DUSA extends from approximately $52.28 on the downside to $59.32 on the upside. A DUSA long call butterfly is a pinning play: it pays maximum at the middle strike if DUSA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DUSA IV rank near 13.15% 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 DUSA at 22.00%. As a Financial Services name, DUSA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DUSA-specific events.
DUSA 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. DUSA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DUSA alongside the broader basket even when DUSA-specific fundamentals are unchanged. Always rebuild the position from current DUSA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DUSA?
- A butterfly on DUSA is the butterfly strategy applied to DUSA (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 DUSA etf trading near $55.80, the strikes shown on this page are snapped to the nearest listed DUSA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DUSA 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 DUSA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DUSA butterfly?
- The breakeven for the DUSA butterfly priced on this page is no defined breakeven on the modeled curve 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 DUSA market-implied 1-standard-deviation expected move is approximately 6.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on DUSA?
- Butterflies on DUSA are pinning bets - traders use them when they expect DUSA 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 DUSA implied volatility affect this butterfly?
- DUSA ATM IV is at 22.00% with IV rank near 13.15%, 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.