AVGW Butterfly Strategy
AVGW (Roundhill Investments - AVGO WeeklyPay ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The Roundhill AVGO WeeklyPay ETF (AVGW) is designed for investors seeking a dual objective: consistent income generation alongside the potential for capital appreciation. This actively managed exchange-traded fund aims to provide both weekly distributions and weekly total returns that track 120% (1.2 times) the performance of Broadcom's (Nasdaq: AVGO) common shares over each calendar week, prior to accounting for fees and expenses.
AVGW (Roundhill Investments - AVGO WeeklyPay ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $49.2M, a beta of 3.26 versus the broader market, a 52-week range of 33.625-64.13, average daily share volume of 30K, a public-listing history dating back to 2025. These structural characteristics shape how AVGW etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.26 indicates AVGW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AVGW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AVGW?
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.
AVGW snapshot
As of August 14, 2026, spot at $39.02, ATM IV 54.30%, IV rank 11.17%, expected move 15.57%. The butterfly on AVGW 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 AVGW specifically: AVGW IV at 54.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVGW butterfly, with a market-implied 1-standard-deviation move of approximately 15.57% (roughly $6.07 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 AVGW expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVGW should anchor to the underlying notional of $39.02 per share and to the trader's directional view on AVGW etf.
AVGW butterfly setup
The AVGW 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 AVGW at $39.02 on that close, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVGW 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 AVGW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $2.70 |
| Sell 2 | Call | $39.00 | $2.00 |
| Buy 1 | Call | $41.00 | $1.18 |
AVGW butterfly risk and reward
- Net Premium / Debit
- +$12.50
- Max Profit (per contract)
- $195.39
- Max Loss (per contract)
- $12.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 15.632
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.
AVGW butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AVGW. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$12.50 |
| $8.64 | -77.9% | +$12.50 |
| $17.26 | -55.8% | +$12.50 |
| $25.89 | -33.7% | +$12.50 |
| $34.52 | -11.5% | +$12.50 |
| $43.14 | +10.6% | +$12.50 |
| $51.77 | +32.7% | +$12.50 |
| $60.40 | +54.8% | +$12.50 |
| $69.02 | +76.9% | +$12.50 |
| $77.65 | +99.0% | +$12.50 |
When traders use butterfly on AVGW
Butterflies on AVGW are pinning bets - traders use them when they expect AVGW 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.
AVGW thesis for this butterfly
The market-implied 1-standard-deviation range for AVGW extends from approximately $32.95 on the downside to $45.09 on the upside. A AVGW long call butterfly is a pinning play: it pays maximum at the middle strike if AVGW settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVGW IV rank near 11.17% 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 AVGW at 54.30%. As a Financial Services name, AVGW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVGW-specific events.
AVGW 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. AVGW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVGW alongside the broader basket even when AVGW-specific fundamentals are unchanged. Always rebuild the position from current AVGW chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AVGW?
- A butterfly on AVGW is the butterfly strategy applied to AVGW (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 AVGW etf at $39.02 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVGW chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AVGW 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 AVGW butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.30%), the computed maximum profit is $195.39 per contract and the computed maximum loss is $12.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVGW butterfly?
- The breakeven for the AVGW butterfly priced on this page is no defined breakeven on the modeled curve 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 AVGW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AVGW?
- Butterflies on AVGW are pinning bets - traders use them when they expect AVGW 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 AVGW implied volatility affect this butterfly?
- AVGW ATM IV is at 54.30% with IV rank near 11.17%, 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.