How are AVGV 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 AVGV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $217.74 per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVGV butterfly?

The breakeven for the AVGV butterfly priced on this page is roughly $82.50 and $87.50 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 AVGV market-implied 1-standard-deviation expected move is approximately 5.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVGV implied volatility affect this butterfly?

AVGV ATM IV is at 19.20% with IV rank near 25.99%, 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.

AVGV Butterfly Strategy

AVGV (Avantis All Equity Markets Value ETF 9), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This ETF is designed to offer comprehensive market exposure, diversifying investments across numerous companies, industries, and geographic regions. Its core strategy is to identify securities with the potential for superior long-term returns, specifically by targeting businesses that are currently undervalued but demonstrate strong profitability. This is achieved by investing in a portfolio of other Avantis exchange-traded funds (ETFs). While embracing the advantages of indexing—such as broad diversification, minimized portfolio churn, and clear insight into its holdings—the fund also seeks to enhance returns by leveraging current market pricing to inform its investment selections. It employs an efficient portfolio management and trading approach, meticulously designed to optimize returns while simultaneously mitigating undue risks and transaction expenses for investors. Ultimately, this strategy provides investors with an effective allocation to the total market, emphasizing a value-oriented approach.

AVGV (Avantis All Equity Markets Value ETF 9) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $338.9M, a beta of 0.80 versus the broader market, a 52-week range of 64.94-87.03, average daily share volume of 34K, a public-listing history dating back to 2023. These structural characteristics shape how AVGV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.80 places AVGV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVGV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVGV?

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 AVGV snapshot

As of June 30, 2026, spot at $85.10, ATM IV 19.20%, IV rank 25.99%, expected move 5.50%. The butterfly on AVGV 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 17-day expiry.

Why this butterfly structure on AVGV specifically: AVGV IV at 19.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVGV butterfly, with a market-implied 1-standard-deviation move of approximately 5.50% (roughly $4.68 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVGV expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVGV should anchor to the underlying notional of $85.10 per share and to the trader's directional view on AVGV etf.

AVGV butterfly setup

The AVGV 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 AVGV near $85.10, the first option leg uses a $81.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVGV chain at a 17-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 AVGV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$81.00	$4.30
Sell 2	Call	$85.00	$1.54
Buy 1	Call	$89.00	$0.28

AVGV butterfly risk and reward

Net Premium / Debit: -$150.00
Max Profit (per contract): $217.74
Max Loss (per contract): -$150.00
Breakeven(s): $82.50, $87.50
Risk / Reward Ratio: 1.452

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.

AVGV butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVGV. 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%	-$150.00
$18.82	-77.9%	-$150.00
$37.64	-55.8%	-$150.00
$56.45	-33.7%	-$150.00
$75.27	-11.6%	-$150.00
$94.08	+10.6%	-$150.00
$112.90	+32.7%	-$150.00
$131.71	+54.8%	-$150.00
$150.53	+76.9%	-$150.00
$169.34	+99.0%	-$150.00

When traders use butterfly on AVGV

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

AVGV thesis for this butterfly

The market-implied 1-standard-deviation range for AVGV extends from approximately $80.42 on the downside to $89.78 on the upside. A AVGV long call butterfly is a pinning play: it pays maximum at the middle strike if AVGV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVGV IV rank near 25.99% 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 AVGV at 19.20%. As a Financial Services name, AVGV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVGV-specific events.

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

Frequently asked questions

What is a butterfly on AVGV?: A butterfly on AVGV is the butterfly strategy applied to AVGV (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 AVGV etf trading near $85.10, the strikes shown on this page are snapped to the nearest listed AVGV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVGV 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 AVGV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $217.74 per contract and the computed maximum loss is -$150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVGV butterfly?: The breakeven for the AVGV butterfly priced on this page is roughly $82.50 and $87.50 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 AVGV market-implied 1-standard-deviation expected move is approximately 5.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVGV?: Butterflies on AVGV are pinning bets - traders use them when they expect AVGV 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 AVGV implied volatility affect this butterfly?: AVGV ATM IV is at 19.20% with IV rank near 25.99%, 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.