UTEN Butterfly Strategy
UTEN (US Treasury 10 Year Note ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Under normal market conditions, the Adviser seeks to achieve the investment objective by investing at least 80% of the net assets (plus any borrowings for investment purposes) in the component securities of the index. The index is a one-security index comprised of the most recently issued 10-year US Treasury note.
UTEN (US Treasury 10 Year Note ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $290.7M, a beta of 1.26 versus the broader market, a 52-week range of 42.54-44.889, average daily share volume of 52K, a public-listing history dating back to 2022. These structural characteristics shape how UTEN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places UTEN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UTEN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on UTEN?
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 UTEN snapshot
As of May 15, 2026, spot at $42.73, ATM IV 87.10%, IV rank 100.00%, expected move 24.97%. The butterfly on UTEN 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 UTEN specifically: UTEN IV at 87.10% is rich versus its 1-year range, which makes a premium-buying UTEN butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 24.97% (roughly $10.67 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 UTEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on UTEN should anchor to the underlying notional of $42.73 per share and to the trader's directional view on UTEN etf.
UTEN butterfly setup
The UTEN 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 UTEN near $42.73, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UTEN 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 UTEN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $41.00 | $1.93 |
| Sell 2 | Call | $43.00 | $0.94 |
| Buy 1 | Call | $45.00 | $0.30 |
UTEN butterfly risk and reward
- Net Premium / Debit
- -$34.50
- Max Profit (per contract)
- $160.47
- Max Loss (per contract)
- -$34.50
- Breakeven(s)
- $41.35, $44.66
- Risk / Reward Ratio
- 4.651
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.
UTEN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UTEN. 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% | -$34.50 |
| $9.46 | -77.9% | -$34.50 |
| $18.90 | -55.8% | -$34.50 |
| $28.35 | -33.7% | -$34.50 |
| $37.80 | -11.5% | -$34.50 |
| $47.24 | +10.6% | -$34.50 |
| $56.69 | +32.7% | -$34.50 |
| $66.14 | +54.8% | -$34.50 |
| $75.58 | +76.9% | -$34.50 |
| $85.03 | +99.0% | -$34.50 |
When traders use butterfly on UTEN
Butterflies on UTEN are pinning bets - traders use them when they expect UTEN 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.
UTEN thesis for this butterfly
The market-implied 1-standard-deviation range for UTEN extends from approximately $32.06 on the downside to $53.40 on the upside. A UTEN long call butterfly is a pinning play: it pays maximum at the middle strike if UTEN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UTEN IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on UTEN at 87.10%. As a Financial Services name, UTEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UTEN-specific events.
UTEN 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. UTEN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UTEN alongside the broader basket even when UTEN-specific fundamentals are unchanged. Always rebuild the position from current UTEN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UTEN?
- A butterfly on UTEN is the butterfly strategy applied to UTEN (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 UTEN etf trading near $42.73, the strikes shown on this page are snapped to the nearest listed UTEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UTEN 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 UTEN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 87.10%), the computed maximum profit is $160.47 per contract and the computed maximum loss is -$34.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UTEN butterfly?
- The breakeven for the UTEN butterfly priced on this page is roughly $41.35 and $44.66 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 UTEN market-implied 1-standard-deviation expected move is approximately 24.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UTEN?
- Butterflies on UTEN are pinning bets - traders use them when they expect UTEN 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 UTEN implied volatility affect this butterfly?
- UTEN ATM IV is at 87.10% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.