HOMZ Butterfly Strategy
HOMZ (Hoya Capital Housing ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The index is a rules-based index composed of 100 companies that collectively represent the performance of the U.S. residential housing industry. Normally at least 80% of the fund’s net assets will be invested in real estate and housing-related companies. It will generally use a “replication” strategy to achieve its investment objective, meaning it generally will invest in all of the component securities of the index in approximately the same proportion as in the index.
HOMZ (Hoya Capital Housing ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $33.9M, a beta of 1.24 versus the broader market, a 52-week range of 41.16-50.01, average daily share volume of 2K, a public-listing history dating back to 2019. These structural characteristics shape how HOMZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places HOMZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HOMZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on HOMZ?
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 HOMZ snapshot
As of May 15, 2026, spot at $42.03, ATM IV 29.70%, IV rank 13.45%, expected move 8.51%. The butterfly on HOMZ 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 HOMZ specifically: HOMZ IV at 29.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a HOMZ butterfly, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $3.58 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 HOMZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOMZ should anchor to the underlying notional of $42.03 per share and to the trader's directional view on HOMZ etf.
HOMZ butterfly setup
The HOMZ 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 HOMZ near $42.03, the first option leg uses a $39.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HOMZ 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 HOMZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $39.93 | N/A |
| Sell 2 | Call | $42.03 | N/A |
| Buy 1 | Call | $44.13 | N/A |
HOMZ butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
HOMZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HOMZ. 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.
When traders use butterfly on HOMZ
Butterflies on HOMZ are pinning bets - traders use them when they expect HOMZ 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.
HOMZ thesis for this butterfly
The market-implied 1-standard-deviation range for HOMZ extends from approximately $38.45 on the downside to $45.61 on the upside. A HOMZ long call butterfly is a pinning play: it pays maximum at the middle strike if HOMZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HOMZ IV rank near 13.45% 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 HOMZ at 29.70%. As a Financial Services name, HOMZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HOMZ-specific events.
HOMZ 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. HOMZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HOMZ alongside the broader basket even when HOMZ-specific fundamentals are unchanged. Always rebuild the position from current HOMZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HOMZ?
- A butterfly on HOMZ is the butterfly strategy applied to HOMZ (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 HOMZ etf trading near $42.03, the strikes shown on this page are snapped to the nearest listed HOMZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HOMZ 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 HOMZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HOMZ butterfly?
- The breakeven for the HOMZ butterfly priced on this page is no defined breakeven on the modeled curve 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 HOMZ market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HOMZ?
- Butterflies on HOMZ are pinning bets - traders use them when they expect HOMZ 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 HOMZ implied volatility affect this butterfly?
- HOMZ ATM IV is at 29.70% with IV rank near 13.45%, 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.