TETH Butterfly Strategy
TETH (21Shares Ethereum ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
TETH aims to track the spot price of ether, less expenses and liabilities. It provides accessibility to ether without the complexities of acquiring, holding, and trading directly through an ether spot market. The trust is backed by ether held in cold storage, which is a safeguarding method wherein the private keys providing access to the trusts assets are generated and stored in an offline manner. However, a portion of the trusts assets may be held in hot trading wallets, from time to time. Holdings are valued daily based on the CME CF Ether-Dollar Reference Rate. This aggregates the trade flow of six ether exchanges, which serves as a once-a-day benchmark rate of ethers USD price, calculated as of 4:00 pm ET.
TETH (21Shares Ethereum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $24.3M, a beta of 2.74 versus the broader market, a 52-week range of 9.02-24.27, average daily share volume of 4.0M, a public-listing history dating back to 2024. These structural characteristics shape how TETH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.74 indicates TETH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TETH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on TETH?
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 TETH snapshot
As of May 15, 2026, spot at $11.11, ATM IV 73.20%, expected move 20.99%. The butterfly on TETH 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 TETH specifically: IV rank is unavailable in the current snapshot, so regime-based timing for TETH is inferred from ATM IV at 73.20% alone, with a market-implied 1-standard-deviation move of approximately 20.99% (roughly $2.33 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 TETH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TETH should anchor to the underlying notional of $11.11 per share and to the trader's directional view on TETH etf.
TETH butterfly setup
The TETH 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 TETH near $11.11, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TETH 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 TETH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.00 | $1.17 |
| Sell 2 | Call | $11.00 | $1.17 |
| Buy 1 | Call | $12.00 | $0.77 |
TETH butterfly risk and reward
- Net Premium / Debit
- +$40.00
- Max Profit (per contract)
- $40.00
- Max Loss (per contract)
- -$60.00
- Breakeven(s)
- $11.40
- Risk / Reward Ratio
- 0.667
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.
TETH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TETH. 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 | -99.9% | +$40.00 |
| $2.47 | -77.8% | +$40.00 |
| $4.92 | -55.7% | +$40.00 |
| $7.38 | -33.6% | +$40.00 |
| $9.83 | -11.5% | +$40.00 |
| $12.29 | +10.6% | -$60.00 |
| $14.74 | +32.7% | -$60.00 |
| $17.20 | +54.8% | -$60.00 |
| $19.65 | +76.9% | -$60.00 |
| $22.11 | +99.0% | -$60.00 |
When traders use butterfly on TETH
Butterflies on TETH are pinning bets - traders use them when they expect TETH 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.
TETH thesis for this butterfly
The market-implied 1-standard-deviation range for TETH extends from approximately $8.78 on the downside to $13.44 on the upside. A TETH long call butterfly is a pinning play: it pays maximum at the middle strike if TETH 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, TETH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TETH-specific events.
TETH 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. TETH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TETH alongside the broader basket even when TETH-specific fundamentals are unchanged. Always rebuild the position from current TETH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TETH?
- A butterfly on TETH is the butterfly strategy applied to TETH (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 TETH etf trading near $11.11, the strikes shown on this page are snapped to the nearest listed TETH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TETH 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 TETH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 73.20%), the computed maximum profit is $40.00 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TETH butterfly?
- The breakeven for the TETH butterfly priced on this page is roughly $11.40 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 TETH market-implied 1-standard-deviation expected move is approximately 20.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TETH?
- Butterflies on TETH are pinning bets - traders use them when they expect TETH 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 TETH implied volatility affect this butterfly?
- Current TETH ATM IV is 73.20%; IV rank context is unavailable in the current snapshot.