ISHP Butterfly Strategy
ISHP (First Trust S-Network E-Commerce ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The First Trust S-Network E-Commerce ETF, previously recognized as the First Trust Nasdaq Retail ETF, is an investment vehicle designed to closely mirror the financial performance—both in terms of price appreciation and income generation—of an equity benchmark known as the S-Network Global E-Commerce Index. This tracking objective is considered before the ETF's own operational fees and expenses are deducted. To achieve this, the fund generally allocates at least 90% of its total net assets (including any funds borrowed for investment purposes) to the common stocks and depository receipts that comprise this index.
ISHP (First Trust S-Network E-Commerce ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $5.1M, a beta of 1.00 versus the broader market, a 52-week range of 32.054-42.951, average daily share volume of 0K, a public-listing history dating back to 2016. These structural characteristics shape how ISHP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places ISHP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ISHP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ISHP?
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.
ISHP snapshot
As of August 14, 2026, spot at $37.11, ATM IV 42.80%, IV rank 19.75%, expected move 12.27%. The butterfly on ISHP 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 ISHP specifically: ISHP IV at 42.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a ISHP butterfly, with a market-implied 1-standard-deviation move of approximately 12.27% (roughly $4.55 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 ISHP expiries trade a higher absolute premium for lower per-day decay. Position sizing on ISHP should anchor to the underlying notional of $37.11 per share and to the trader's directional view on ISHP etf.
ISHP butterfly setup
The ISHP 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 ISHP at $37.11 on that close, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ISHP 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 ISHP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $3.29 |
| Sell 2 | Call | $37.00 | $2.11 |
| Buy 1 | Call | $39.00 | $1.27 |
ISHP butterfly risk and reward
- Net Premium / Debit
- -$34.00
- Max Profit (per contract)
- $158.85
- Max Loss (per contract)
- -$34.00
- Breakeven(s)
- $35.34, $38.66
- Risk / Reward Ratio
- 4.672
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.
ISHP butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ISHP. 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% | -$34.00 |
| $8.21 | -77.9% | -$34.00 |
| $16.42 | -55.8% | -$34.00 |
| $24.62 | -33.7% | -$34.00 |
| $32.83 | -11.5% | -$34.00 |
| $41.03 | +10.6% | -$34.00 |
| $49.23 | +32.7% | -$34.00 |
| $57.44 | +54.8% | -$34.00 |
| $65.64 | +76.9% | -$34.00 |
| $73.85 | +99.0% | -$34.00 |
When traders use butterfly on ISHP
Butterflies on ISHP are pinning bets - traders use them when they expect ISHP 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.
ISHP thesis for this butterfly
The market-implied 1-standard-deviation range for ISHP extends from approximately $32.56 on the downside to $41.66 on the upside. A ISHP long call butterfly is a pinning play: it pays maximum at the middle strike if ISHP settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ISHP IV rank near 19.75% 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 ISHP at 42.80%. As a Financial Services name, ISHP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ISHP-specific events.
ISHP 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. ISHP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ISHP alongside the broader basket even when ISHP-specific fundamentals are unchanged. Always rebuild the position from current ISHP chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ISHP?
- A butterfly on ISHP is the butterfly strategy applied to ISHP (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 ISHP etf at $37.11 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ISHP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ISHP 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 ISHP butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.80%), the computed maximum profit is $158.85 per contract and the computed maximum loss is -$34.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ISHP butterfly?
- The breakeven for the ISHP butterfly priced on this page is roughly $35.34 and $38.66 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 ISHP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ISHP?
- Butterflies on ISHP are pinning bets - traders use them when they expect ISHP 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 ISHP implied volatility affect this butterfly?
- ISHP ATM IV is at 42.80% with IV rank near 19.75%, 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.