PINK Butterfly Strategy
PINK (Simplify Health Care ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Simplify Health Care ETF (PINK) seeks long term capital appreciation by providing investors with multi-cap exposure to groundbreaking and innovative companies in biotech, medtech, gene therapy, and other fast growing health care related sectors. Michael Taylor serves as lead portfolio manager of the ETF and brings over two decades of experience managing long/short health care equity portfolios at leading hedge funds. PINK is the first 100% pro bono ETF focused on the health care sector and net profits will be donated for the benefit of the Susan G. Komen foundation on an annual basis. PINK: Shares for the Cure Find out more. Benefiting Donations$350,000as of 09/01/25
PINK (Simplify Health Care ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $141.7M, a beta of 0.80 versus the broader market, a 52-week range of 27.56-38.68, average daily share volume of 121K, a public-listing history dating back to 2021. These structural characteristics shape how PINK etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places PINK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PINK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PINK?
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 PINK snapshot
As of May 15, 2026, spot at $36.59, ATM IV 29.90%, IV rank 25.35%, expected move 8.57%. The butterfly on PINK 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 63-day expiry.
Why this butterfly structure on PINK specifically: PINK IV at 29.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PINK butterfly, with a market-implied 1-standard-deviation move of approximately 8.57% (roughly $3.14 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PINK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PINK should anchor to the underlying notional of $36.59 per share and to the trader's directional view on PINK etf.
PINK butterfly setup
The PINK 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 PINK near $36.59, 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 PINK chain at a 63-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 PINK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $2.23 |
| Sell 2 | Call | $37.00 | $1.47 |
| Buy 1 | Call | $38.00 | $1.06 |
PINK butterfly risk and reward
- Net Premium / Debit
- -$34.50
- Max Profit (per contract)
- $150.85
- Max Loss (per contract)
- -$34.50
- Breakeven(s)
- $35.35
- Risk / Reward Ratio
- 4.372
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.
PINK butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PINK. 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% | -$34.50 |
| $8.10 | -77.9% | -$34.50 |
| $16.19 | -55.8% | -$34.50 |
| $24.28 | -33.7% | -$34.50 |
| $32.37 | -11.5% | -$34.50 |
| $40.46 | +10.6% | +$65.50 |
| $48.54 | +32.7% | +$65.50 |
| $56.63 | +54.8% | +$65.50 |
| $64.72 | +76.9% | +$65.50 |
| $72.81 | +99.0% | +$65.50 |
When traders use butterfly on PINK
Butterflies on PINK are pinning bets - traders use them when they expect PINK 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.
PINK thesis for this butterfly
The market-implied 1-standard-deviation range for PINK extends from approximately $33.45 on the downside to $39.73 on the upside. A PINK long call butterfly is a pinning play: it pays maximum at the middle strike if PINK settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PINK IV rank near 25.35% 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 PINK at 29.90%. As a Financial Services name, PINK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PINK-specific events.
PINK 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. PINK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PINK alongside the broader basket even when PINK-specific fundamentals are unchanged. Always rebuild the position from current PINK chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PINK?
- A butterfly on PINK is the butterfly strategy applied to PINK (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 PINK etf trading near $36.59, the strikes shown on this page are snapped to the nearest listed PINK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PINK 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 PINK butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 29.90%), the computed maximum profit is $150.85 per contract and the computed maximum loss is -$34.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PINK butterfly?
- The breakeven for the PINK butterfly priced on this page is roughly $35.35 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 PINK market-implied 1-standard-deviation expected move is approximately 8.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PINK?
- Butterflies on PINK are pinning bets - traders use them when they expect PINK 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 PINK implied volatility affect this butterfly?
- PINK ATM IV is at 29.90% with IV rank near 25.35%, 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.