USPH Butterfly Strategy
USPH (U.S. Physical Therapy, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. It operates through two segments, Physical Therapy Operations and Industrial Injury Prevention Services. The company offers industrial injury prevention services, including onsite injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments through physical therapists and specialized certified athletic trainers for Fortune 500 companies, and other clients comprising insurers and their contractors. As of December 31, 2021, it operated 591 clinics in 39 states; and managed 35 physical therapy practice facilities. The company was founded in 1990 and is based in Houston, Texas.
USPH (U.S. Physical Therapy, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $915.3M, a trailing P/E of 773.00, a beta of 1.20 versus the broader market, a 52-week range of 58.19-93.5, average daily share volume of 187K, a public-listing history dating back to 1992, approximately 4K full-time employees. These structural characteristics shape how USPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places USPH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 773.00 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. USPH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on USPH?
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 USPH snapshot
As of May 15, 2026, spot at $63.36, ATM IV 41.20%, IV rank 5.21%, expected move 11.81%. The butterfly on USPH 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 USPH specifically: USPH IV at 41.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a USPH butterfly, with a market-implied 1-standard-deviation move of approximately 11.81% (roughly $7.48 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 USPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on USPH should anchor to the underlying notional of $63.36 per share and to the trader's directional view on USPH stock.
USPH butterfly setup
The USPH 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 USPH near $63.36, the first option leg uses a $60.19 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed USPH 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 USPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $60.19 | N/A |
| Sell 2 | Call | $63.36 | N/A |
| Buy 1 | Call | $66.53 | N/A |
USPH 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.
USPH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on USPH. 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 USPH
Butterflies on USPH are pinning bets - traders use them when they expect USPH 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.
USPH thesis for this butterfly
The market-implied 1-standard-deviation range for USPH extends from approximately $55.88 on the downside to $70.84 on the upside. A USPH long call butterfly is a pinning play: it pays maximum at the middle strike if USPH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current USPH IV rank near 5.21% 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 USPH at 41.20%. As a Healthcare name, USPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USPH-specific events.
USPH 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. USPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move USPH alongside the broader basket even when USPH-specific fundamentals are unchanged. Always rebuild the position from current USPH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on USPH?
- A butterfly on USPH is the butterfly strategy applied to USPH (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 USPH stock trading near $63.36, the strikes shown on this page are snapped to the nearest listed USPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are USPH 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 USPH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 41.20%), 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 USPH butterfly?
- The breakeven for the USPH 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 USPH market-implied 1-standard-deviation expected move is approximately 11.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on USPH?
- Butterflies on USPH are pinning bets - traders use them when they expect USPH 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 USPH implied volatility affect this butterfly?
- USPH ATM IV is at 41.20% with IV rank near 5.21%, 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.