How are AVGG 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 AVGG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 95.90%), the computed maximum profit is $117.16 per contract and the computed maximum loss is -$82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVGG butterfly?

The breakeven for the AVGG butterfly priced on this page is roughly $29.18 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AVGG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVGG implied volatility affect this butterfly?

AVGG ATM IV is at 95.90% with IV rank near 27.78%, 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.

AVGG Butterfly Strategy

AVGG (Leverage Shares 2X Long AVGO Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

AVGG is designed for making bullish bets on the stock price of Broadcom Inc. (AVGO) through swap agreements. The objective is to obtain daily leveraged exposure equivalent to 200% of the fund's net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to AVGO's daily price movements. As a geared product, the fund is intended as a short-term tactical tool, rather than as a long-term investment vehicle. As a result, returns may deviate from the expected 2x if held for longer than a single day due to compounding. This strategy is high-risk and does not include a defensive position as part of its overall process.

AVGG (Leverage Shares 2X Long AVGO Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $10.7M, a beta of 6.16 versus the broader market, a 52-week range of 17.87-49.44, average daily share volume of 272K, a public-listing history dating back to 2025. These structural characteristics shape how AVGG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 6.16 indicates AVGG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AVGG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVGG?

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.

AVGG snapshot

As of August 14, 2026, spot at $28.42, ATM IV 95.90%, IV rank 27.78%, expected move 27.49%. The butterfly on AVGG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this butterfly structure on AVGG specifically: AVGG IV at 95.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVGG butterfly, with a market-implied 1-standard-deviation move of approximately 27.49% (roughly $7.81 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVGG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVGG should anchor to the underlying notional of $28.42 per share and to the trader's directional view on AVGG etf.

AVGG butterfly setup

The AVGG butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AVGG at $28.42 on that close, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVGG chain at a 35-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 AVGG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$27.00	$3.90
Sell 2	Call	$28.00	$3.40
Buy 1	Call	$30.00	$2.73

AVGG butterfly risk and reward

Net Premium / Debit: +$17.50
Max Profit (per contract): $117.16
Max Loss (per contract): -$82.50
Breakeven(s): $29.18
Risk / Reward Ratio: 1.420

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.

AVGG butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVGG. 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%	+$17.50
$6.29	-77.9%	+$17.50
$12.58	-55.8%	+$17.50
$18.86	-33.6%	+$17.50
$25.14	-11.5%	+$17.50
$31.42	+10.6%	-$82.50
$37.71	+32.7%	-$82.50
$43.99	+54.8%	-$82.50
$50.27	+76.9%	-$82.50
$56.55	+99.0%	-$82.50

When traders use butterfly on AVGG

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

AVGG thesis for this butterfly

The market-implied 1-standard-deviation range for AVGG extends from approximately $20.61 on the downside to $36.23 on the upside. A AVGG long call butterfly is a pinning play: it pays maximum at the middle strike if AVGG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVGG IV rank near 27.78% 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 AVGG at 95.90%. As a Financial Services name, AVGG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVGG-specific events.

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

Frequently asked questions

What is a butterfly on AVGG?: A butterfly on AVGG is the butterfly strategy applied to AVGG (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 AVGG etf at $28.42 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVGG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AVGG 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 AVGG butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 95.90%), the computed maximum profit is $117.16 per contract and the computed maximum loss is -$82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVGG butterfly?: The breakeven for the AVGG butterfly priced on this page is roughly $29.18 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AVGG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVGG?: Butterflies on AVGG are pinning bets - traders use them when they expect AVGG 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 AVGG implied volatility affect this butterfly?: AVGG ATM IV is at 95.90% with IV rank near 27.78%, 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.