EMTY Butterfly Strategy
EMTY (ProShares - Decline of the Retail Store ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Decline of the Retail Store ETF seeks capital appreciation from the decline of bricks-and-mortar retailers through short exposure (-1x) to the Solactive-ProShares Bricks and Mortar Retail Store Index.
EMTY (ProShares - Decline of the Retail Store ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.9M, a beta of -1.11 versus the broader market, a 52-week range of 10.89-13.1, average daily share volume of 6K, a public-listing history dating back to 2017. These structural characteristics shape how EMTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.11 indicates EMTY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EMTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on EMTY?
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 EMTY snapshot
As of May 15, 2026, spot at $12.61, ATM IV 70.20%, IV rank 14.50%, expected move 20.13%. The butterfly on EMTY 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 EMTY specifically: EMTY IV at 70.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a EMTY butterfly, with a market-implied 1-standard-deviation move of approximately 20.13% (roughly $2.54 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 EMTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on EMTY should anchor to the underlying notional of $12.61 per share and to the trader's directional view on EMTY etf.
EMTY butterfly setup
The EMTY 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 EMTY near $12.61, the first option leg uses a $11.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EMTY 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 EMTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.98 | N/A |
| Sell 2 | Call | $12.61 | N/A |
| Buy 1 | Call | $13.24 | N/A |
EMTY 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.
EMTY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EMTY. 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 EMTY
Butterflies on EMTY are pinning bets - traders use them when they expect EMTY 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.
EMTY thesis for this butterfly
The market-implied 1-standard-deviation range for EMTY extends from approximately $10.07 on the downside to $15.15 on the upside. A EMTY long call butterfly is a pinning play: it pays maximum at the middle strike if EMTY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EMTY IV rank near 14.50% 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 EMTY at 70.20%. As a Financial Services name, EMTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EMTY-specific events.
EMTY 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. EMTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EMTY alongside the broader basket even when EMTY-specific fundamentals are unchanged. Always rebuild the position from current EMTY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EMTY?
- A butterfly on EMTY is the butterfly strategy applied to EMTY (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 EMTY etf trading near $12.61, the strikes shown on this page are snapped to the nearest listed EMTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EMTY 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 EMTY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 70.20%), 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 EMTY butterfly?
- The breakeven for the EMTY 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 EMTY market-implied 1-standard-deviation expected move is approximately 20.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EMTY?
- Butterflies on EMTY are pinning bets - traders use them when they expect EMTY 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 EMTY implied volatility affect this butterfly?
- EMTY ATM IV is at 70.20% with IV rank near 14.50%, 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.