STHH Butterfly Strategy
STHH (STMicroelectronics NV ADRhedged), in the Technology sector, (Semiconductors industry), listed on AMEX.
The series, under normal circumstances, invests at least 95% of its net assets in American Depositary Receipts (“ADRs”) of the STMicroelectronics NV. It invests in the ADRs of the Company and a currency swap designed to hedge against fluctuations in the exchange rate between the U.S. dollar and the Euro (“Local Currency”). The fund is non-diversified.
STHH (STMicroelectronics NV ADRhedged) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.2M, a beta of 2.71 versus the broader market, a 52-week range of 43.299-125.05, average daily share volume of 1K, 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 2.71 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 May 15, 2026, spot at $122.35, ATM IV 62.50%, expected move 17.92%. 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 34-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 62.50% alone, with a market-implied 1-standard-deviation move of approximately 17.92% (roughly $21.92 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 STHH expiries trade a higher absolute premium for lower per-day decay. Position sizing on STHH should anchor to the underlying notional of $122.35 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 $122.35, the first option leg uses a $116.00 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 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 STHH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $116.00 | $12.75 |
| Sell 2 | Call | $122.00 | $9.70 |
| Buy 1 | Call | $127.00 | $7.50 |
STHH butterfly risk and reward
- Net Premium / Debit
- -$85.00
- Max Profit (per contract)
- $489.02
- Max Loss (per contract)
- -$85.00
- Breakeven(s)
- $116.85
- Risk / Reward Ratio
- 5.753
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% | -$85.00 |
| $27.06 | -77.9% | -$85.00 |
| $54.11 | -55.8% | -$85.00 |
| $81.16 | -33.7% | -$85.00 |
| $108.21 | -11.6% | -$85.00 |
| $135.27 | +10.6% | +$15.00 |
| $162.32 | +32.7% | +$15.00 |
| $189.37 | +54.8% | +$15.00 |
| $216.42 | +76.9% | +$15.00 |
| $243.47 | +99.0% | +$15.00 |
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 $100.43 on the downside to $144.27 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 Technology 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 Technology 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 $122.35, 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 62.50%), the computed maximum profit is $489.02 per contract and the computed maximum loss is -$85.00 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 $116.85 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 17.92%; 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 62.50%; IV rank context is unavailable in the current snapshot.