GSKH Butterfly Strategy
GSKH (GSK plc ADRhedged), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The series, under normal circumstances, invests at least 95% of its net assets in American Depositary Receipts (“ADRs”) of GSK plc (the “Company”). The series will not invest directly in the company. The fund is non-diversified.
GSKH (GSK plc ADRhedged) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $710,731, a beta of -0.31 versus the broader market, a 52-week range of 50.43-85.03, average daily share volume of 1K, a public-listing history dating back to 2025. These structural characteristics shape how GSKH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.31 indicates GSKH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GSKH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on GSKH?
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 GSKH snapshot
As of May 15, 2026, spot at $70.75, ATM IV 13.70%, expected move 3.93%. The butterfly on GSKH 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 GSKH specifically: IV rank is unavailable in the current snapshot, so regime-based timing for GSKH is inferred from ATM IV at 13.70% alone, with a market-implied 1-standard-deviation move of approximately 3.93% (roughly $2.78 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 GSKH expiries trade a higher absolute premium for lower per-day decay. Position sizing on GSKH should anchor to the underlying notional of $70.75 per share and to the trader's directional view on GSKH etf.
GSKH butterfly setup
The GSKH 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 GSKH near $70.75, the first option leg uses a $67.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GSKH 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 GSKH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $67.00 | $4.75 |
| Sell 2 | Call | $71.00 | $2.15 |
| Buy 1 | Call | $74.00 | $1.04 |
GSKH butterfly risk and reward
- Net Premium / Debit
- -$149.00
- Max Profit (per contract)
- $239.95
- Max Loss (per contract)
- -$149.00
- Breakeven(s)
- $68.49, $73.51
- Risk / Reward Ratio
- 1.610
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.
GSKH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GSKH. 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% | -$149.00 |
| $15.65 | -77.9% | -$149.00 |
| $31.29 | -55.8% | -$149.00 |
| $46.94 | -33.7% | -$149.00 |
| $62.58 | -11.5% | -$149.00 |
| $78.22 | +10.6% | -$49.00 |
| $93.86 | +32.7% | -$49.00 |
| $109.50 | +54.8% | -$49.00 |
| $125.15 | +76.9% | -$49.00 |
| $140.79 | +99.0% | -$49.00 |
When traders use butterfly on GSKH
Butterflies on GSKH are pinning bets - traders use them when they expect GSKH 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.
GSKH thesis for this butterfly
The market-implied 1-standard-deviation range for GSKH extends from approximately $67.97 on the downside to $73.53 on the upside. A GSKH long call butterfly is a pinning play: it pays maximum at the middle strike if GSKH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, GSKH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GSKH-specific events.
GSKH 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. GSKH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GSKH alongside the broader basket even when GSKH-specific fundamentals are unchanged. Always rebuild the position from current GSKH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GSKH?
- A butterfly on GSKH is the butterfly strategy applied to GSKH (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 GSKH etf trading near $70.75, the strikes shown on this page are snapped to the nearest listed GSKH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GSKH 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 GSKH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 13.70%), the computed maximum profit is $239.95 per contract and the computed maximum loss is -$149.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GSKH butterfly?
- The breakeven for the GSKH butterfly priced on this page is roughly $68.49 and $73.51 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 GSKH market-implied 1-standard-deviation expected move is approximately 3.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GSKH?
- Butterflies on GSKH are pinning bets - traders use them when they expect GSKH 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 GSKH implied volatility affect this butterfly?
- Current GSKH ATM IV is 13.70%; IV rank context is unavailable in the current snapshot.