FETH Butterfly Strategy
FETH (Fidelity Ethereum Fund), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on CBOE.
Get easier exposure to the price of ether in most accounts where you invest in stocks, bonds, mutual funds, and ETFs.1. This product is for investors with a high risk tolerance and invests solely in ether, which is highly volatile and could become illiquid. Investors could lose their entire investment. FETH is not a traditional ETF registered under the Investment Company Act of 1940.
FETH (Fidelity Ethereum Fund) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $2.29B, a beta of 2.74 versus the broader market, a 52-week range of 17.98-48.56, average daily share volume of 4.0M, a public-listing history dating back to 2024. These structural characteristics shape how FETH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.74 indicates FETH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on FETH?
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 FETH snapshot
As of May 15, 2026, spot at $22.14, ATM IV 54.20%, IV rank 12.47%, expected move 15.54%. The butterfly on FETH 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 FETH specifically: FETH IV at 54.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FETH butterfly, with a market-implied 1-standard-deviation move of approximately 15.54% (roughly $3.44 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 FETH expiries trade a higher absolute premium for lower per-day decay. Position sizing on FETH should anchor to the underlying notional of $22.14 per share and to the trader's directional view on FETH etf.
FETH butterfly setup
The FETH 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 FETH near $22.14, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FETH 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 FETH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $21.00 | $2.23 |
| Sell 2 | Call | $22.00 | $1.60 |
| Buy 1 | Call | $23.00 | $1.20 |
FETH butterfly risk and reward
- Net Premium / Debit
- -$22.50
- Max Profit (per contract)
- $74.12
- Max Loss (per contract)
- -$22.50
- Breakeven(s)
- $21.23, $22.78
- Risk / Reward Ratio
- 3.294
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.
FETH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FETH. 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% | -$22.50 |
| $4.90 | -77.8% | -$22.50 |
| $9.80 | -55.7% | -$22.50 |
| $14.69 | -33.6% | -$22.50 |
| $19.59 | -11.5% | -$22.50 |
| $24.48 | +10.6% | -$22.50 |
| $29.38 | +32.7% | -$22.50 |
| $34.27 | +54.8% | -$22.50 |
| $39.16 | +76.9% | -$22.50 |
| $44.06 | +99.0% | -$22.50 |
When traders use butterfly on FETH
Butterflies on FETH are pinning bets - traders use them when they expect FETH 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.
FETH thesis for this butterfly
The market-implied 1-standard-deviation range for FETH extends from approximately $18.70 on the downside to $25.58 on the upside. A FETH long call butterfly is a pinning play: it pays maximum at the middle strike if FETH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FETH IV rank near 12.47% 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 FETH at 54.20%. As a Financial Services name, FETH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FETH-specific events.
FETH 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. FETH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FETH alongside the broader basket even when FETH-specific fundamentals are unchanged. Always rebuild the position from current FETH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FETH?
- A butterfly on FETH is the butterfly strategy applied to FETH (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 FETH etf trading near $22.14, the strikes shown on this page are snapped to the nearest listed FETH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FETH 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 FETH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 54.20%), the computed maximum profit is $74.12 per contract and the computed maximum loss is -$22.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FETH butterfly?
- The breakeven for the FETH butterfly priced on this page is roughly $21.23 and $22.78 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 FETH market-implied 1-standard-deviation expected move is approximately 15.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FETH?
- Butterflies on FETH are pinning bets - traders use them when they expect FETH 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 FETH implied volatility affect this butterfly?
- FETH ATM IV is at 54.20% with IV rank near 12.47%, 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.