PTH Butterfly Strategy
PTH (Invesco Dorsey Wright Healthcare Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Invesco Dorsey Wright Healthcare Momentum ETF (Fund) is based on the Dorsey Wright Healthcare Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe. The Fund and the Index are rebalanced and reconstituted quarterly.
PTH (Invesco Dorsey Wright Healthcare Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $122.9M, a beta of 1.06 versus the broader market, a 52-week range of 35.78-54.48, average daily share volume of 9K, a public-listing history dating back to 2006. These structural characteristics shape how PTH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places PTH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PTH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on PTH?
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 PTH snapshot
As of May 15, 2026, spot at $51.16, ATM IV 26.30%, IV rank 12.33%, expected move 7.54%. The butterfly on PTH 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 PTH specifically: PTH IV at 26.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a PTH butterfly, with a market-implied 1-standard-deviation move of approximately 7.54% (roughly $3.86 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 PTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PTH should anchor to the underlying notional of $51.16 per share and to the trader's directional view on PTH etf.
PTH butterfly setup
The PTH 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 PTH near $51.16, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PTH 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 PTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $49.00 | $3.40 |
| Sell 2 | Call | $51.00 | $1.84 |
| Buy 1 | Call | $54.00 | $0.70 |
PTH butterfly risk and reward
- Net Premium / Debit
- -$42.00
- Max Profit (per contract)
- $148.79
- Max Loss (per contract)
- -$142.00
- Breakeven(s)
- $49.42, $52.58
- Risk / Reward Ratio
- 1.048
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.
PTH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on PTH. 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% | -$42.00 |
| $11.32 | -77.9% | -$42.00 |
| $22.63 | -55.8% | -$42.00 |
| $33.94 | -33.7% | -$42.00 |
| $45.25 | -11.5% | -$42.00 |
| $56.56 | +10.6% | -$142.00 |
| $67.87 | +32.7% | -$142.00 |
| $79.18 | +54.8% | -$142.00 |
| $90.50 | +76.9% | -$142.00 |
| $101.81 | +99.0% | -$142.00 |
When traders use butterfly on PTH
Butterflies on PTH are pinning bets - traders use them when they expect PTH 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.
PTH thesis for this butterfly
The market-implied 1-standard-deviation range for PTH extends from approximately $47.30 on the downside to $55.02 on the upside. A PTH long call butterfly is a pinning play: it pays maximum at the middle strike if PTH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current PTH IV rank near 12.33% 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 PTH at 26.30%. As a Financial Services name, PTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PTH-specific events.
PTH 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. PTH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PTH alongside the broader basket even when PTH-specific fundamentals are unchanged. Always rebuild the position from current PTH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on PTH?
- A butterfly on PTH is the butterfly strategy applied to PTH (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 PTH etf trading near $51.16, the strikes shown on this page are snapped to the nearest listed PTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PTH 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 PTH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.30%), the computed maximum profit is $148.79 per contract and the computed maximum loss is -$142.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PTH butterfly?
- The breakeven for the PTH butterfly priced on this page is roughly $49.42 and $52.58 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 PTH market-implied 1-standard-deviation expected move is approximately 7.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on PTH?
- Butterflies on PTH are pinning bets - traders use them when they expect PTH 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 PTH implied volatility affect this butterfly?
- PTH ATM IV is at 26.30% with IV rank near 12.33%, 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.