YETH Butterfly Strategy
YETH (Roundhill Investments - Ether Covered Call Strategy ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on CBOE.
The Roundhill Ether Covered Call Strategy ETF, identified by its ticker YETH, is structured to provide investors with a way to gain exposure to Ether, the native cryptocurrency of the Ethereum blockchain. However, this participation includes an inherent limit on potential gains. A core objective of the fund, in addition to offering access to the digital asset, is to generate potential income for its holders. YETH is an actively managed investment vehicle, meaning its strategy and portfolio are regularly adjusted by its managers.
YETH (Roundhill Investments - Ether Covered Call Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $53.0M, a beta of 1.26 versus the broader market, a 52-week range of 7.63-31.78, average daily share volume of 82K, a public-listing history dating back to 2024. These structural characteristics shape how YETH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places YETH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. YETH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on YETH?
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.
YETH snapshot
As of August 14, 2026, spot at $8.81, ATM IV 35.10%, IV rank 4.22%, expected move 10.06%. The butterfly on YETH below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on YETH specifically: YETH IV at 35.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a YETH butterfly, with a market-implied 1-standard-deviation move of approximately 10.06% (roughly $0.89 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YETH expiries trade a higher absolute premium for lower per-day decay. Position sizing on YETH should anchor to the underlying notional of $8.81 per share and to the trader's directional view on YETH etf.
YETH butterfly setup
The YETH butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With YETH at $8.81 on that close, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YETH chain at a 35-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 YETH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.00 | $1.18 |
| Sell 2 | Call | $9.00 | $0.65 |
| Buy 1 | Call | $9.00 | $0.65 |
YETH butterfly risk and reward
- Net Premium / Debit
- -$53.00
- Max Profit (per contract)
- $47.00
- Max Loss (per contract)
- -$53.00
- Breakeven(s)
- $8.53
- Risk / Reward Ratio
- 0.887
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.
YETH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on YETH. 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% | -$53.00 |
| $1.96 | -77.8% | -$53.00 |
| $3.90 | -55.7% | -$53.00 |
| $5.85 | -33.6% | -$53.00 |
| $7.80 | -11.5% | -$53.00 |
| $9.74 | +10.6% | +$47.00 |
| $11.69 | +32.7% | +$47.00 |
| $13.64 | +54.8% | +$47.00 |
| $15.58 | +76.9% | +$47.00 |
| $17.53 | +99.0% | +$47.00 |
When traders use butterfly on YETH
Butterflies on YETH are pinning bets - traders use them when they expect YETH 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.
YETH thesis for this butterfly
The market-implied 1-standard-deviation range for YETH extends from approximately $7.92 on the downside to $9.70 on the upside. A YETH long call butterfly is a pinning play: it pays maximum at the middle strike if YETH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current YETH IV rank near 4.22% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on YETH at 35.10%. As a Financial Services name, YETH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YETH-specific events.
YETH 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. YETH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YETH alongside the broader basket even when YETH-specific fundamentals are unchanged. Always rebuild the position from current YETH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on YETH?
- A butterfly on YETH is the butterfly strategy applied to YETH (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 YETH etf at $8.81 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed YETH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are YETH 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 YETH butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.10%), the computed maximum profit is $47.00 per contract and the computed maximum loss is -$53.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a YETH butterfly?
- The breakeven for the YETH butterfly priced on this page is roughly $8.53 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The YETH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on YETH?
- Butterflies on YETH are pinning bets - traders use them when they expect YETH 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 YETH implied volatility affect this butterfly?
- YETH ATM IV is at 35.10% with IV rank near 4.22%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.