HTB Butterfly Strategy
HTB (HomeTrust Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company's loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. It also provides small business administration loans, equipment finance leases, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services. As of June 30, 2021, the company operated 41 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.
HTB (HomeTrust Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $768.2M, a trailing P/E of 11.38, a beta of 0.82 versus the broader market, a 52-week range of 34.66-47.64, average daily share volume of 74K, a public-listing history dating back to 2011, approximately 539 full-time employees. These structural characteristics shape how HTB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places HTB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.38 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HTB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on HTB?
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 HTB snapshot
As of May 15, 2026, spot at $45.73, ATM IV 49.20%, IV rank 18.86%, expected move 14.11%. The butterfly on HTB 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 HTB specifically: HTB IV at 49.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a HTB butterfly, with a market-implied 1-standard-deviation move of approximately 14.11% (roughly $6.45 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 HTB expiries trade a higher absolute premium for lower per-day decay. Position sizing on HTB should anchor to the underlying notional of $45.73 per share and to the trader's directional view on HTB stock.
HTB butterfly setup
The HTB 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 HTB near $45.73, the first option leg uses a $43.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HTB 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 HTB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $43.44 | N/A |
| Sell 2 | Call | $45.73 | N/A |
| Buy 1 | Call | $48.02 | N/A |
HTB 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.
HTB butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HTB. 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 HTB
Butterflies on HTB are pinning bets - traders use them when they expect HTB 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.
HTB thesis for this butterfly
The market-implied 1-standard-deviation range for HTB extends from approximately $39.28 on the downside to $52.18 on the upside. A HTB long call butterfly is a pinning play: it pays maximum at the middle strike if HTB settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HTB IV rank near 18.86% 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 HTB at 49.20%. As a Financial Services name, HTB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HTB-specific events.
HTB 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. HTB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HTB alongside the broader basket even when HTB-specific fundamentals are unchanged. Always rebuild the position from current HTB chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HTB?
- A butterfly on HTB is the butterfly strategy applied to HTB (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 HTB stock trading near $45.73, the strikes shown on this page are snapped to the nearest listed HTB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HTB 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 HTB butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 49.20%), 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 HTB butterfly?
- The breakeven for the HTB 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 HTB market-implied 1-standard-deviation expected move is approximately 14.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HTB?
- Butterflies on HTB are pinning bets - traders use them when they expect HTB 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 HTB implied volatility affect this butterfly?
- HTB ATM IV is at 49.20% with IV rank near 18.86%, 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.