HUT Butterfly Strategy
HUT (Hut 8 Corp.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NASDAQ.
Hut 8 Corp Hut 8 Corp. is a vertically integrated operator of large-scale energy infrastructure and Bitcoin miners. The Company acquires, designs, builds, manages, and operates data centers that power compute-intensive workloads such as Bitcoin mining, high performance computing, and artificial intelligence.
HUT (Hut 8 Corp.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $12.20B, a beta of 5.72 versus the broader market, a 52-week range of 14.744-112.26, average daily share volume of 4.8M, a public-listing history dating back to 2018, approximately 222 full-time employees. These structural characteristics shape how HUT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 5.72 indicates HUT 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 HUT?
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 HUT snapshot
As of May 15, 2026, spot at $102.77, ATM IV 89.87%, IV rank 31.51%, expected move 25.77%. The butterfly on HUT 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 28-day expiry.
Why this butterfly structure on HUT specifically: HUT IV at 89.87% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 25.77% (roughly $26.48 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUT expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUT should anchor to the underlying notional of $102.77 per share and to the trader's directional view on HUT stock.
HUT butterfly setup
The HUT 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 HUT near $102.77, the first option leg uses a $98.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUT chain at a 28-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 HUT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $98.00 | $12.70 |
| Sell 2 | Call | $103.00 | $10.25 |
| Buy 1 | Call | $108.00 | $8.33 |
HUT butterfly risk and reward
- Net Premium / Debit
- -$52.50
- Max Profit (per contract)
- $418.36
- Max Loss (per contract)
- -$52.50
- Breakeven(s)
- $98.53, $107.52
- Risk / Reward Ratio
- 7.969
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.
HUT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on HUT. 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% | -$52.50 |
| $22.73 | -77.9% | -$52.50 |
| $45.45 | -55.8% | -$52.50 |
| $68.18 | -33.7% | -$52.50 |
| $90.90 | -11.6% | -$52.50 |
| $113.62 | +10.6% | -$52.50 |
| $136.34 | +32.7% | -$52.50 |
| $159.06 | +54.8% | -$52.50 |
| $181.79 | +76.9% | -$52.50 |
| $204.51 | +99.0% | -$52.50 |
When traders use butterfly on HUT
Butterflies on HUT are pinning bets - traders use them when they expect HUT 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.
HUT thesis for this butterfly
The market-implied 1-standard-deviation range for HUT extends from approximately $76.29 on the downside to $129.25 on the upside. A HUT long call butterfly is a pinning play: it pays maximum at the middle strike if HUT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HUT IV rank near 31.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on HUT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HUT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUT-specific events.
HUT 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. HUT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUT alongside the broader basket even when HUT-specific fundamentals are unchanged. Always rebuild the position from current HUT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on HUT?
- A butterfly on HUT is the butterfly strategy applied to HUT (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 HUT stock trading near $102.77, the strikes shown on this page are snapped to the nearest listed HUT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HUT 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 HUT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 89.87%), the computed maximum profit is $418.36 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HUT butterfly?
- The breakeven for the HUT butterfly priced on this page is roughly $98.53 and $107.52 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 HUT market-implied 1-standard-deviation expected move is approximately 25.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on HUT?
- Butterflies on HUT are pinning bets - traders use them when they expect HUT 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 HUT implied volatility affect this butterfly?
- HUT ATM IV is at 89.87% with IV rank near 31.51%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.