COHX Butterfly Strategy
COHX (Investment Managers Series Trust II - Tradr 2X Long COHR Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
COHX uses swap agreements and listed call options to make bullish bets on the share price of Coherent Corp. (NYSE: COHR). The fund may also invest directly in COHR. Coherent Corp. develops, manufactures, and markets engineered materials, opto-electronic components and devices, and lasers for use in the industrial, communications, electronics, and instrumentation markets. It operates through the following segments: Networking, Materials, and Lasers. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in COHR price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
COHX (Investment Managers Series Trust II - Tradr 2X Long COHR Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $110.1M, a beta of 6.62 versus the broader market, a 52-week range of 16.1-75.64, average daily share volume of 984K, a public-listing history dating back to 2026. These structural characteristics shape how COHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 6.62 indicates COHX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on COHX?
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.
COHX snapshot
As of September 29, 2026, spot at $22.98, ATM IV 149.60%, IV rank 13.95%, expected move 42.89%. The butterfly on COHX below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this butterfly structure on COHX specifically: COHX IV at 149.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a COHX butterfly, with a market-implied 1-standard-deviation move of approximately 42.89% (roughly $9.86 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on COHX should anchor to the underlying notional of $22.98 per share and to the trader's directional view on COHX stock.
COHX butterfly setup
The COHX butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With COHX at $22.98 on that close, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COHX chain at a 17-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 COHX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $22.00 | $3.78 |
| Sell 2 | Call | $23.00 | $2.75 |
| Buy 1 | Call | $24.00 | $2.35 |
COHX butterfly risk and reward
- Net Premium / Debit
- -$62.50
- Max Profit (per contract)
- $27.45
- Max Loss (per contract)
- -$62.50
- Breakeven(s)
- $22.63
- Risk / Reward Ratio
- 0.439
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.
COHX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on COHX. 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% | -$62.50 |
| $5.09 | -77.9% | -$62.50 |
| $10.17 | -55.7% | -$62.50 |
| $15.25 | -33.6% | -$62.50 |
| $20.33 | -11.5% | -$62.50 |
| $25.41 | +10.6% | -$62.50 |
| $30.49 | +32.7% | -$62.50 |
| $35.57 | +54.8% | -$62.50 |
| $40.65 | +76.9% | -$62.50 |
| $45.73 | +99.0% | -$62.50 |
When traders use butterfly on COHX
Butterflies on COHX are pinning bets - traders use them when they expect COHX 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.
COHX thesis for this butterfly
The market-implied 1-standard-deviation range for COHX extends from approximately $13.12 on the downside to $32.84 on the upside. A COHX long call butterfly is a pinning play: it pays maximum at the middle strike if COHX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current COHX IV rank near 13.95% 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 COHX at 149.60%. As a Financial Services name, COHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COHX-specific events.
COHX 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. COHX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COHX alongside the broader basket even when COHX-specific fundamentals are unchanged. Always rebuild the position from current COHX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on COHX?
- A butterfly on COHX is the butterfly strategy applied to COHX (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 COHX stock at $22.98 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed COHX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are COHX 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 COHX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 149.60%), the computed maximum profit is $27.45 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COHX butterfly?
- The breakeven for the COHX butterfly priced on this page is roughly $22.63 at expiration, derived from the September 29, 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 COHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on COHX?
- Butterflies on COHX are pinning bets - traders use them when they expect COHX 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 COHX implied volatility affect this butterfly?
- COHX ATM IV is at 149.60% with IV rank near 13.95%, 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.