TDV Butterfly Strategy
TDV (ProShares - S&P Technology Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The index, constructed and maintained by S&P Dow Jones Indices LLC, targets companies from the U.S. technology sector and select U.S. technology-related companies from the communication services and consumer discretionary sectors. Under normal circumstances, the fund will invest at least 80% of its total assets in component securities of the index. It is non-diversified.
TDV (ProShares - S&P Technology Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $266.1M, a beta of 1.17 versus the broader market, a 52-week range of 76.13-99.43, average daily share volume of 8K, a public-listing history dating back to 2019. These structural characteristics shape how TDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.17 places TDV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TDV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TDV?
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 TDV snapshot
As of May 15, 2026, spot at $97.55, ATM IV 24.70%, IV rank 30.06%, expected move 7.08%. The butterfly on TDV 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 TDV specifically: TDV IV at 24.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $6.91 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 TDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDV should anchor to the underlying notional of $97.55 per share and to the trader's directional view on TDV etf.
TDV butterfly setup
The TDV 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 TDV near $97.55, the first option leg uses a $93.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDV 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 TDV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $93.00 | $6.15 |
| Sell 2 | Call | $98.00 | $2.80 |
| Buy 1 | Call | $100.00 | $2.00 |
TDV butterfly risk and reward
- Net Premium / Debit
- -$255.00
- Max Profit (per contract)
- $240.48
- Max Loss (per contract)
- -$255.00
- Breakeven(s)
- $95.55
- Risk / Reward Ratio
- 0.943
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.
TDV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TDV. 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% | -$255.00 |
| $21.58 | -77.9% | -$255.00 |
| $43.15 | -55.8% | -$255.00 |
| $64.71 | -33.7% | -$255.00 |
| $86.28 | -11.6% | -$255.00 |
| $107.85 | +10.6% | +$45.00 |
| $129.42 | +32.7% | +$45.00 |
| $150.98 | +54.8% | +$45.00 |
| $172.55 | +76.9% | +$45.00 |
| $194.12 | +99.0% | +$45.00 |
When traders use butterfly on TDV
Butterflies on TDV are pinning bets - traders use them when they expect TDV 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.
TDV thesis for this butterfly
The market-implied 1-standard-deviation range for TDV extends from approximately $90.64 on the downside to $104.46 on the upside. A TDV long call butterfly is a pinning play: it pays maximum at the middle strike if TDV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TDV IV rank near 30.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TDV should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDV-specific events.
TDV 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. TDV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDV alongside the broader basket even when TDV-specific fundamentals are unchanged. Always rebuild the position from current TDV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TDV?
- A butterfly on TDV is the butterfly strategy applied to TDV (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 TDV etf trading near $97.55, the strikes shown on this page are snapped to the nearest listed TDV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TDV 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 TDV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $240.48 per contract and the computed maximum loss is -$255.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TDV butterfly?
- The breakeven for the TDV butterfly priced on this page is roughly $95.55 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 TDV market-implied 1-standard-deviation expected move is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TDV?
- Butterflies on TDV are pinning bets - traders use them when they expect TDV 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 TDV implied volatility affect this butterfly?
- TDV ATM IV is at 24.70% with IV rank near 30.06%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.