FTEC Butterfly Strategy
FTEC (Fidelity MSCI Information Technology Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Tracks the performance of the MSCI USA IMI Information Technology 25/50 Index.
FTEC (Fidelity MSCI Information Technology Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $17.84B, a beta of 1.28 versus the broader market, a 52-week range of 175.39-272.11, average daily share volume of 440K, a public-listing history dating back to 2013. These structural characteristics shape how FTEC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places FTEC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FTEC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FTEC?
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 FTEC snapshot
As of May 15, 2026, spot at $271.51, ATM IV 28.50%, IV rank 69.08%, expected move 8.17%. The butterfly on FTEC 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 FTEC specifically: FTEC IV at 28.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 8.17% (roughly $22.18 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 FTEC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTEC should anchor to the underlying notional of $271.51 per share and to the trader's directional view on FTEC etf.
FTEC butterfly setup
The FTEC 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 FTEC near $271.51, the first option leg uses a $260.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTEC 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 FTEC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $260.00 | $17.55 |
| Sell 2 | Call | $270.00 | $11.05 |
| Buy 1 | Call | $285.00 | $4.75 |
FTEC butterfly risk and reward
- Net Premium / Debit
- -$20.00
- Max Profit (per contract)
- $964.93
- Max Loss (per contract)
- -$520.00
- Breakeven(s)
- $259.51, $279.80
- Risk / Reward Ratio
- 1.856
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.
FTEC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FTEC. 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% | -$20.00 |
| $60.04 | -77.9% | -$20.00 |
| $120.07 | -55.8% | -$20.00 |
| $180.10 | -33.7% | -$20.00 |
| $240.14 | -11.6% | -$20.00 |
| $300.17 | +10.6% | -$520.00 |
| $360.20 | +32.7% | -$520.00 |
| $420.23 | +54.8% | -$520.00 |
| $480.26 | +76.9% | -$520.00 |
| $540.29 | +99.0% | -$520.00 |
When traders use butterfly on FTEC
Butterflies on FTEC are pinning bets - traders use them when they expect FTEC 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.
FTEC thesis for this butterfly
The market-implied 1-standard-deviation range for FTEC extends from approximately $249.33 on the downside to $293.69 on the upside. A FTEC long call butterfly is a pinning play: it pays maximum at the middle strike if FTEC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FTEC IV rank near 69.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FTEC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FTEC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTEC-specific events.
FTEC 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. FTEC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTEC alongside the broader basket even when FTEC-specific fundamentals are unchanged. Always rebuild the position from current FTEC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FTEC?
- A butterfly on FTEC is the butterfly strategy applied to FTEC (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 FTEC etf trading near $271.51, the strikes shown on this page are snapped to the nearest listed FTEC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTEC 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 FTEC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 28.50%), the computed maximum profit is $964.93 per contract and the computed maximum loss is -$520.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTEC butterfly?
- The breakeven for the FTEC butterfly priced on this page is roughly $259.51 and $279.80 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 FTEC market-implied 1-standard-deviation expected move is approximately 8.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FTEC?
- Butterflies on FTEC are pinning bets - traders use them when they expect FTEC 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 FTEC implied volatility affect this butterfly?
- FTEC ATM IV is at 28.50% with IV rank near 69.08%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.