ARDT Butterfly Strategy
ARDT (Ardent Health Partners, LLC), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
Ardent Health Partners, LLC owns and operates a network of hospitals and clinics that provides a range of healthcare services in the United States. It operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. The company was founded in 2001 and is based in Brentwood, Tennessee. Ardent Health Partners, LLC is a subsidiary of EGI-AM Investments, L.L.C.
ARDT (Ardent Health Partners, LLC) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.42B, a trailing P/E of 10.43, a beta of 0.93 versus the broader market, a 52-week range of 8.07-15.48, average daily share volume of 400K, a public-listing history dating back to 2024, approximately 19K full-time employees. These structural characteristics shape how ARDT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places ARDT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.43 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on ARDT?
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 ARDT snapshot
As of May 15, 2026, spot at $10.18, ATM IV 52.70%, IV rank 6.73%, expected move 15.11%. The butterfly on ARDT 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 ARDT specifically: ARDT IV at 52.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a ARDT butterfly, with a market-implied 1-standard-deviation move of approximately 15.11% (roughly $1.54 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 ARDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARDT should anchor to the underlying notional of $10.18 per share and to the trader's directional view on ARDT stock.
ARDT butterfly setup
The ARDT 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 ARDT near $10.18, the first option leg uses a $9.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARDT 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 ARDT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.67 | N/A |
| Sell 2 | Call | $10.18 | N/A |
| Buy 1 | Call | $10.69 | N/A |
ARDT butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ARDT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ARDT. 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.
When traders use butterfly on ARDT
Butterflies on ARDT are pinning bets - traders use them when they expect ARDT 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.
ARDT thesis for this butterfly
The market-implied 1-standard-deviation range for ARDT extends from approximately $8.64 on the downside to $11.72 on the upside. A ARDT long call butterfly is a pinning play: it pays maximum at the middle strike if ARDT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ARDT IV rank near 6.73% 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 ARDT at 52.70%. As a Healthcare name, ARDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARDT-specific events.
ARDT 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. ARDT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARDT alongside the broader basket even when ARDT-specific fundamentals are unchanged. Always rebuild the position from current ARDT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ARDT?
- A butterfly on ARDT is the butterfly strategy applied to ARDT (stock). 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 ARDT stock trading near $10.18, the strikes shown on this page are snapped to the nearest listed ARDT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ARDT 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 ARDT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 52.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ARDT butterfly?
- The breakeven for the ARDT butterfly priced on this page is no defined breakeven on the modeled curve 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 ARDT market-implied 1-standard-deviation expected move is approximately 15.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ARDT?
- Butterflies on ARDT are pinning bets - traders use them when they expect ARDT 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 ARDT implied volatility affect this butterfly?
- ARDT ATM IV is at 52.70% with IV rank near 6.73%, 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.