HACK Butterfly Strategy
HACK (Amplify Cybersecurity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
HACK is the first cybersecurity ETF on the market. The fund follows the ISE Cyber Security Industry classification and splits the industry into two segments: developers of cybersecurity hardware or software and providers of cybersecurity services. To be eligible for inclusion, a company must meet minimum market capitalization and liquidity screens. Eligible stocks must also derive at least 90% of their revenues from cybersecurity and should score at least 1.25% in revenue contribution. The resulting portfolio is market cap-weighted, subject to a weight capping methodology. The index is reconstituted and rebalanced quarterly.
HACK (Amplify Cybersecurity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.22B, a beta of 0.82 versus the broader market, a 52-week range of 69.66-120.27, average daily share volume of 169K, a public-listing history dating back to 2014. These structural characteristics shape how HACK etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places HACK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HACK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on HACK?
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.
HACK snapshot
As of August 14, 2026, spot at $118.42, ATM IV 29.50%, IV rank 58.96%, expected move 8.46%. The butterfly on HACK below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on HACK specifically: HACK IV at 29.50% 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 8.46% (roughly $10.02 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HACK expiries trade a higher absolute premium for lower per-day decay. Position sizing on HACK should anchor to the underlying notional of $118.42 per share and to the trader's directional view on HACK etf.
HACK butterfly setup
The HACK butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HACK at $118.42 on that close, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HACK chain at a 35-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 HACK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $110.00 | $10.55 |
| Sell 2 | Call | $120.00 | $3.80 |
| Buy 1 | Call | $125.00 | $1.95 |
HACK butterfly risk and reward
- Net Premium / Debit
- -$490.00
- Max Profit (per contract)
- $488.98
- Max Loss (per contract)
- -$490.00
- Breakeven(s)
- $114.90
- Risk / Reward Ratio
- 0.998
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.
HACK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HACK. 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% | -$490.00 |
| $26.19 | -77.9% | -$490.00 |
| $52.37 | -55.8% | -$490.00 |
| $78.56 | -33.7% | -$490.00 |
| $104.74 | -11.6% | -$490.00 |
| $130.92 | +10.6% | +$10.00 |
| $157.10 | +32.7% | +$10.00 |
| $183.29 | +54.8% | +$10.00 |
| $209.47 | +76.9% | +$10.00 |
| $235.65 | +99.0% | +$10.00 |
When traders use butterfly on HACK
Butterflies on HACK are pinning bets - traders use them when they expect HACK 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.
HACK thesis for this butterfly
The market-implied 1-standard-deviation range for HACK extends from approximately $108.40 on the downside to $128.44 on the upside. A HACK long call butterfly is a pinning play: it pays maximum at the middle strike if HACK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HACK IV rank near 58.96% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HACK should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HACK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HACK-specific events.
HACK 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. HACK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HACK alongside the broader basket even when HACK-specific fundamentals are unchanged. Always rebuild the position from current HACK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HACK?
- A butterfly on HACK is the butterfly strategy applied to HACK (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 HACK etf at $118.42 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HACK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HACK 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 HACK butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.50%), the computed maximum profit is $488.98 per contract and the computed maximum loss is -$490.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HACK butterfly?
- The breakeven for the HACK butterfly priced on this page is roughly $114.90 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HACK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HACK?
- Butterflies on HACK are pinning bets - traders use them when they expect HACK 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 HACK implied volatility affect this butterfly?
- HACK ATM IV is at 29.50% with IV rank near 58.96%, 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.