STHH Butterfly Strategy
STHH (STMicroelectronics NV ADRhedged), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under typical circumstances, this investment series primarily commits a minimum of 95% of its total assets to American Depositary Receipts (ADRs) issued by STMicroelectronics NV. To manage potential currency risk, the fund also implements a specific currency swap strategy aimed at hedging against volatility in the exchange rate between the U.S. dollar and the Euro. It's important to note that this fund is not diversified.
STHH (STMicroelectronics NV ADRhedged) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.4M, a beta of 2.86 versus the broader market, a 52-week range of 43.299-162.57, average daily share volume of 3K, a public-listing history dating back to 2025. These structural characteristics shape how STHH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.86 indicates STHH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. STHH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on STHH?
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 STHH snapshot
As of June 29, 2026, spot at $149.89, ATM IV 77.30%, expected move 22.16%. The butterfly on STHH 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 18-day expiry.
Why this butterfly structure on STHH specifically: IV rank is unavailable in the current snapshot, so regime-based timing for STHH is inferred from ATM IV at 77.30% alone, with a market-implied 1-standard-deviation move of approximately 22.16% (roughly $33.22 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STHH expiries trade a higher absolute premium for lower per-day decay. Position sizing on STHH should anchor to the underlying notional of $149.89 per share and to the trader's directional view on STHH etf.
STHH butterfly setup
The STHH 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 STHH near $149.89, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STHH chain at a 18-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 STHH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $140.00 | $15.80 |
| Sell 2 | Call | $150.00 | $10.05 |
| Buy 1 | Call | $155.00 | $7.95 |
STHH butterfly risk and reward
- Net Premium / Debit
- -$365.00
- Max Profit (per contract)
- $570.18
- Max Loss (per contract)
- -$365.00
- Breakeven(s)
- $143.65
- Risk / Reward Ratio
- 1.562
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.
STHH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on STHH. 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% | -$365.00 |
| $33.15 | -77.9% | -$365.00 |
| $66.29 | -55.8% | -$365.00 |
| $99.43 | -33.7% | -$365.00 |
| $132.57 | -11.6% | -$365.00 |
| $165.71 | +10.6% | +$135.00 |
| $198.85 | +32.7% | +$135.00 |
| $231.99 | +54.8% | +$135.00 |
| $265.13 | +76.9% | +$135.00 |
| $298.27 | +99.0% | +$135.00 |
When traders use butterfly on STHH
Butterflies on STHH are pinning bets - traders use them when they expect STHH 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.
STHH thesis for this butterfly
The market-implied 1-standard-deviation range for STHH extends from approximately $116.67 on the downside to $183.11 on the upside. A STHH long call butterfly is a pinning play: it pays maximum at the middle strike if STHH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, STHH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STHH-specific events.
STHH 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. STHH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STHH alongside the broader basket even when STHH-specific fundamentals are unchanged. Always rebuild the position from current STHH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on STHH?
- A butterfly on STHH is the butterfly strategy applied to STHH (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 STHH etf trading near $149.89, the strikes shown on this page are snapped to the nearest listed STHH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STHH 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 STHH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 77.30%), the computed maximum profit is $570.18 per contract and the computed maximum loss is -$365.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a STHH butterfly?
- The breakeven for the STHH butterfly priced on this page is roughly $143.65 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 STHH market-implied 1-standard-deviation expected move is approximately 22.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on STHH?
- Butterflies on STHH are pinning bets - traders use them when they expect STHH 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 STHH implied volatility affect this butterfly?
- Current STHH ATM IV is 77.30%; IV rank context is unavailable in the current snapshot.