TTGT Butterfly Strategy
TTGT (TechTarget, Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on NASDAQ.
TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. It also provides purchase-intent marketing and sales services for enterprise technology vendors; and customized marketing programs that integrate demand generation, brand advertising techniques, and content curation and creation. The company offers online services, including IT Deal Alert, including priority engine, qualified sales opportunities, deal data services; demand solutions, such as white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions comprise on-network, off-network, and microsites and related formats branding; custom content creation services; and BrightTALK platform that allows customers to create, host and promote webinars, virtual events, and video content. It also operates an integrated content platform that consists of a network of approximately 150 websites, and 1,080 webinars and virtual event channels that focus on a specific IT sector, such as storage, security, or networking. In addition, the company enables registered members to conduct their pre-purchase research by accessing vendor supplied content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.
TTGT (TechTarget, Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $397.3M, a beta of 1.31 versus the broader market, a 52-week range of 3.41-9, average daily share volume of 613K, a public-listing history dating back to 2007, approximately 2K full-time employees. These structural characteristics shape how TTGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates TTGT 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 TTGT?
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 TTGT snapshot
As of May 15, 2026, spot at $5.28, ATM IV 197.20%, IV rank 41.59%, expected move 56.54%. The butterfly on TTGT 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 TTGT specifically: TTGT IV at 197.20% 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 56.54% (roughly $2.99 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 TTGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TTGT should anchor to the underlying notional of $5.28 per share and to the trader's directional view on TTGT stock.
TTGT butterfly setup
The TTGT 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 TTGT near $5.28, the first option leg uses a $5.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TTGT 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 TTGT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $5.02 | N/A |
| Sell 2 | Call | $5.28 | N/A |
| Buy 1 | Call | $5.54 | N/A |
TTGT 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.
TTGT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on TTGT. 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 TTGT
Butterflies on TTGT are pinning bets - traders use them when they expect TTGT 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.
TTGT thesis for this butterfly
The market-implied 1-standard-deviation range for TTGT extends from approximately $2.29 on the downside to $8.27 on the upside. A TTGT long call butterfly is a pinning play: it pays maximum at the middle strike if TTGT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current TTGT IV rank near 41.59% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on TTGT should anchor more to the directional view and the expected-move geometry. As a Communication Services name, TTGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TTGT-specific events.
TTGT 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. TTGT positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TTGT alongside the broader basket even when TTGT-specific fundamentals are unchanged. Always rebuild the position from current TTGT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on TTGT?
- A butterfly on TTGT is the butterfly strategy applied to TTGT (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 TTGT stock trading near $5.28, the strikes shown on this page are snapped to the nearest listed TTGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TTGT 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 TTGT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 197.20%), 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 TTGT butterfly?
- The breakeven for the TTGT 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 TTGT market-implied 1-standard-deviation expected move is approximately 56.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on TTGT?
- Butterflies on TTGT are pinning bets - traders use them when they expect TTGT 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 TTGT implied volatility affect this butterfly?
- TTGT ATM IV is at 197.20% with IV rank near 41.59%, 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.