HOOY Butterfly Strategy
HOOY (YieldMax HOOD Option Income Strategy ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The YieldMax HOOD Option Income Strategy ETF (HOOY) is an actively managed fund designed to provide consistent weekly income. It achieves this by executing a strategy of selling either call options or call spreads linked to shares of HOOD. This method allows the fund to collect premiums from these option contracts while also enabling investors to benefit from any appreciation in HOOD's stock price.
HOOY (YieldMax HOOD Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $88.2M, a beta of 2.02 versus the broader market, a 52-week range of 23.85-80.99, average daily share volume of 123K, a public-listing history dating back to 2025. These structural characteristics shape how HOOY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.02 indicates HOOY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HOOY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on HOOY?
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.
HOOY snapshot
As of August 14, 2026, spot at $25.88, ATM IV 40.50%, IV rank 10.44%, expected move 11.61%. The butterfly on HOOY 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 HOOY specifically: HOOY IV at 40.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a HOOY butterfly, with a market-implied 1-standard-deviation move of approximately 11.61% (roughly $3.00 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 HOOY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOOY should anchor to the underlying notional of $25.88 per share and to the trader's directional view on HOOY etf.
HOOY butterfly setup
The HOOY 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 HOOY at $25.88 on that close, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HOOY 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 HOOY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $25.00 | $1.13 |
| Sell 2 | Call | $26.00 | $0.60 |
| Buy 1 | Call | $27.00 | $0.31 |
HOOY butterfly risk and reward
- Net Premium / Debit
- -$23.50
- Max Profit (per contract)
- $75.00
- Max Loss (per contract)
- -$23.50
- Breakeven(s)
- $25.24, $26.77
- Risk / Reward Ratio
- 3.191
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.
HOOY butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HOOY. 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% | -$23.50 |
| $5.73 | -77.9% | -$23.50 |
| $11.45 | -55.7% | -$23.50 |
| $17.17 | -33.6% | -$23.50 |
| $22.89 | -11.5% | -$23.50 |
| $28.62 | +10.6% | -$23.50 |
| $34.34 | +32.7% | -$23.50 |
| $40.06 | +54.8% | -$23.50 |
| $45.78 | +76.9% | -$23.50 |
| $51.50 | +99.0% | -$23.50 |
When traders use butterfly on HOOY
Butterflies on HOOY are pinning bets - traders use them when they expect HOOY 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.
HOOY thesis for this butterfly
The market-implied 1-standard-deviation range for HOOY extends from approximately $22.88 on the downside to $28.88 on the upside. A HOOY long call butterfly is a pinning play: it pays maximum at the middle strike if HOOY settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HOOY IV rank near 10.44% 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 HOOY at 40.50%. As a Financial Services name, HOOY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HOOY-specific events.
HOOY 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. HOOY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HOOY alongside the broader basket even when HOOY-specific fundamentals are unchanged. Always rebuild the position from current HOOY chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HOOY?
- A butterfly on HOOY is the butterfly strategy applied to HOOY (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 HOOY etf at $25.88 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HOOY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HOOY 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 HOOY butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.50%), the computed maximum profit is $75.00 per contract and the computed maximum loss is -$23.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HOOY butterfly?
- The breakeven for the HOOY butterfly priced on this page is roughly $25.24 and $26.77 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 HOOY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HOOY?
- Butterflies on HOOY are pinning bets - traders use them when they expect HOOY 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 HOOY implied volatility affect this butterfly?
- HOOY ATM IV is at 40.50% with IV rank near 10.44%, 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.