RSPH Butterfly Strategy
RSPH (Invesco S&P 500 Equal Weight Health Care ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco S&P 500 Equal Weight Health Care ETF (Fund) is based on the S&P 500 Equal Weight Health Care Index (Index). The Fund will invest at least 90% of its total assets in common stocks that comprise the Index. The Index equally weights stocks in the health care sector of the S&P 500 Index. The Fund and the Index are rebalanced quarterly.
RSPH (Invesco S&P 500 Equal Weight Health Care ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $682.7M, a beta of 0.90 versus the broader market, a 52-week range of 27.33-33.51, average daily share volume of 71K, a public-listing history dating back to 2006. These structural characteristics shape how RSPH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places RSPH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RSPH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on RSPH?
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 RSPH snapshot
As of May 15, 2026, spot at $30.20, ATM IV 44.70%, IV rank 22.82%, expected move 12.82%. The butterfly on RSPH 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 RSPH specifically: RSPH IV at 44.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a RSPH butterfly, with a market-implied 1-standard-deviation move of approximately 12.82% (roughly $3.87 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 RSPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on RSPH should anchor to the underlying notional of $30.20 per share and to the trader's directional view on RSPH etf.
RSPH butterfly setup
The RSPH 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 RSPH near $30.20, the first option leg uses a $28.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RSPH 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 RSPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $28.69 | N/A |
| Sell 2 | Call | $30.20 | N/A |
| Buy 1 | Call | $31.71 | N/A |
RSPH 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.
RSPH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on RSPH. 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 RSPH
Butterflies on RSPH are pinning bets - traders use them when they expect RSPH 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.
RSPH thesis for this butterfly
The market-implied 1-standard-deviation range for RSPH extends from approximately $26.33 on the downside to $34.07 on the upside. A RSPH long call butterfly is a pinning play: it pays maximum at the middle strike if RSPH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RSPH IV rank near 22.82% 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 RSPH at 44.70%. As a Financial Services name, RSPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RSPH-specific events.
RSPH 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. RSPH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RSPH alongside the broader basket even when RSPH-specific fundamentals are unchanged. Always rebuild the position from current RSPH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on RSPH?
- A butterfly on RSPH is the butterfly strategy applied to RSPH (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 RSPH etf trading near $30.20, the strikes shown on this page are snapped to the nearest listed RSPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RSPH 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 RSPH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.70%), 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 RSPH butterfly?
- The breakeven for the RSPH 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 RSPH market-implied 1-standard-deviation expected move is approximately 12.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on RSPH?
- Butterflies on RSPH are pinning bets - traders use them when they expect RSPH 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 RSPH implied volatility affect this butterfly?
- RSPH ATM IV is at 44.70% with IV rank near 22.82%, 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.