ARDT Butterfly Strategy
ARDT (Ardent Health Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
Ardent Health, Inc. owns and operates a network of hospitals and clinics that provides healthcare services in the United States. The company offers general and specialty services, including internal medicine, general surgery, cardiology, oncology, orthopedics, women’s services, neurology, urology, and emergency services within inpatient and ambulatory care settings. It also operates a network of ambulatory facilities and telehealth services, including primary care and specialty care clinics, ambulatory surgery centers, urgent care centers, free-standing emergency departments, and diagnostic imaging centers. The company operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. Ardent Health, Inc. was formerly known as Ardent Health Partners, Inc. and changed its name to Ardent Health, Inc. in June 2025. The company was founded in 2001 and is based in Brentwood, Tennessee.
ARDT (Ardent Health Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.59B, a trailing P/E of 20.10, a beta of 0.70 versus the broader market, a 52-week range of 7.71-15.48, average daily share volume of 509K, a public-listing history dating back to 2024, approximately 22K 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 0.70 indicates ARDT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
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.
ARDT snapshot
As of August 14, 2026, spot at $11.02, ATM IV 71.40%, IV rank 13.04%, expected move 20.47%. The butterfly on ARDT below is built from the 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 ARDT specifically: ARDT IV at 71.40% 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 20.47% (roughly $2.26 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 ARDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARDT should anchor to the underlying notional of $11.02 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 at $11.02 on that close, the first option leg uses a $10.47 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 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 ARDT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.47 | N/A |
| Sell 2 | Call | $11.02 | N/A |
| Buy 1 | Call | $11.57 | 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 $8.76 on the downside to $13.28 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 13.04% 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 71.40%. 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 at $11.02 on the most recent close, the strikes shown on this page are snapped to the nearest listed ARDT chain strike and the premiums come straight from that session's 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 71.40%), 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 the 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 ARDT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.47%; 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 71.40% with IV rank near 13.04%, 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.