HIYY Butterfly Strategy
HIYY (YieldMax HIMS Option Income Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The YieldMax HIMS Option Income Strategy ETF (HIYY) is an actively managed exchange-traded fund that seeks to generate weekly income by selling call options or call spreads on HIMS. The strategy is designed to capture option premiums while providing participation in the share price appreciation of HIMS.
HIYY (YieldMax HIMS Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $827,337, a beta of 0.39 versus the broader market, a 52-week range of 9.53-53.97, average daily share volume of 98K, a public-listing history dating back to 2025. These structural characteristics shape how HIYY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.39 indicates HIYY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HIYY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on HIYY?
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 HIYY snapshot
As of May 15, 2026, spot at $14.35, ATM IV 105.10%, IV rank 39.76%, expected move 30.13%. The butterfly on HIYY 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 HIYY specifically: HIYY IV at 105.10% 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 30.13% (roughly $4.32 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 HIYY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIYY should anchor to the underlying notional of $14.35 per share and to the trader's directional view on HIYY etf.
HIYY butterfly setup
The HIYY 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 HIYY near $14.35, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIYY 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 HIYY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.00 | $1.55 |
| Sell 2 | Call | $14.00 | $1.55 |
| Buy 1 | Call | $15.00 | $1.12 |
HIYY butterfly risk and reward
- Net Premium / Debit
- +$43.00
- Max Profit (per contract)
- $43.00
- Max Loss (per contract)
- -$57.00
- Breakeven(s)
- $14.43
- Risk / Reward Ratio
- 0.754
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.
HIYY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HIYY. 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 | -99.9% | +$43.00 |
| $3.18 | -77.8% | +$43.00 |
| $6.35 | -55.7% | +$43.00 |
| $9.53 | -33.6% | +$43.00 |
| $12.70 | -11.5% | +$43.00 |
| $15.87 | +10.6% | -$57.00 |
| $19.04 | +32.7% | -$57.00 |
| $22.21 | +54.8% | -$57.00 |
| $25.38 | +76.9% | -$57.00 |
| $28.56 | +99.0% | -$57.00 |
When traders use butterfly on HIYY
Butterflies on HIYY are pinning bets - traders use them when they expect HIYY 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.
HIYY thesis for this butterfly
The market-implied 1-standard-deviation range for HIYY extends from approximately $10.03 on the downside to $18.67 on the upside. A HIYY long call butterfly is a pinning play: it pays maximum at the middle strike if HIYY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HIYY IV rank near 39.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HIYY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HIYY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIYY-specific events.
HIYY 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. HIYY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HIYY alongside the broader basket even when HIYY-specific fundamentals are unchanged. Always rebuild the position from current HIYY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HIYY?
- A butterfly on HIYY is the butterfly strategy applied to HIYY (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 HIYY etf trading near $14.35, the strikes shown on this page are snapped to the nearest listed HIYY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HIYY 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 HIYY butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 105.10%), the computed maximum profit is $43.00 per contract and the computed maximum loss is -$57.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HIYY butterfly?
- The breakeven for the HIYY butterfly priced on this page is roughly $14.43 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 HIYY market-implied 1-standard-deviation expected move is approximately 30.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HIYY?
- Butterflies on HIYY are pinning bets - traders use them when they expect HIYY 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 HIYY implied volatility affect this butterfly?
- HIYY ATM IV is at 105.10% with IV rank near 39.76%, 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.