How are AVDE 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 AVDE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), the computed maximum profit is $254.75 per contract and the computed maximum loss is -$207.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVDE butterfly?

The breakeven for the AVDE butterfly priced on this page is roughly $86.07 and $91.93 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 AVDE market-implied 1-standard-deviation expected move is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVDE implied volatility affect this butterfly?

AVDE ATM IV is at 22.40% with IV rank near 2.57%, 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.

AVDE Butterfly Strategy

AVDE (Avantis International Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

American Century ETF Trust - Avantis International Equity ETF is an exchange traded fund launched and managed by American Century Investment Management Inc. It invests in public equity markets of global ex-US region. The fund invests in stocks of companies operating across diversified sectors. It invests in growth and value stocks of companies across diversified market capitalization. It seeks to benchmark the performance of its portfolio against the MSCI World ex USA IMI Index. American Century ETF Trust - Avantis International Equity ETF was formed on September 24, 2019 and is domiciled in the United States.

AVDE (Avantis International Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $16.96B, a beta of 0.88 versus the broader market, a 52-week range of 72.79-92.6, average daily share volume of 1.1M, a public-listing history dating back to 2019. These structural characteristics shape how AVDE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.88 places AVDE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVDE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVDE?

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 AVDE snapshot

As of June 30, 2026, spot at $89.06, ATM IV 22.40%, IV rank 2.57%, expected move 6.42%. The butterfly on AVDE 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 52-day expiry.

Why this butterfly structure on AVDE specifically: AVDE IV at 22.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVDE butterfly, with a market-implied 1-standard-deviation move of approximately 6.42% (roughly $5.72 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVDE expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVDE should anchor to the underlying notional of $89.06 per share and to the trader's directional view on AVDE etf.

AVDE butterfly setup

The AVDE 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 AVDE near $89.06, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVDE chain at a 52-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 AVDE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$85.00	$5.25
Sell 2	Call	$89.00	$2.40
Buy 1	Call	$94.00	$0.62

AVDE butterfly risk and reward

Net Premium / Debit: -$107.00
Max Profit (per contract): $254.75
Max Loss (per contract): -$207.00
Breakeven(s): $86.07, $91.93
Risk / Reward Ratio: 1.231

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.

AVDE butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVDE. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$107.00
$19.70	-77.9%	-$107.00
$39.39	-55.8%	-$107.00
$59.08	-33.7%	-$107.00
$78.77	-11.6%	-$107.00
$98.46	+10.6%	-$207.00
$118.15	+32.7%	-$207.00
$137.84	+54.8%	-$207.00
$157.53	+76.9%	-$207.00
$177.22	+99.0%	-$207.00

When traders use butterfly on AVDE

Butterflies on AVDE are pinning bets - traders use them when they expect AVDE 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.

AVDE thesis for this butterfly

The market-implied 1-standard-deviation range for AVDE extends from approximately $83.34 on the downside to $94.78 on the upside. A AVDE long call butterfly is a pinning play: it pays maximum at the middle strike if AVDE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVDE IV rank near 2.57% 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 AVDE at 22.40%. As a Financial Services name, AVDE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVDE-specific events.

AVDE 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. AVDE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVDE alongside the broader basket even when AVDE-specific fundamentals are unchanged. Always rebuild the position from current AVDE chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on AVDE?: A butterfly on AVDE is the butterfly strategy applied to AVDE (etf). 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 AVDE etf trading near $89.06, the strikes shown on this page are snapped to the nearest listed AVDE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVDE 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 AVDE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), the computed maximum profit is $254.75 per contract and the computed maximum loss is -$207.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVDE butterfly?: The breakeven for the AVDE butterfly priced on this page is roughly $86.07 and $91.93 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 AVDE market-implied 1-standard-deviation expected move is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVDE?: Butterflies on AVDE are pinning bets - traders use them when they expect AVDE 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 AVDE implied volatility affect this butterfly?: AVDE ATM IV is at 22.40% with IV rank near 2.57%, 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.