How are AVGX 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 AVGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 91.70%), the computed maximum profit is $218.98 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVGX butterfly?

The breakeven for the AVGX butterfly priced on this page is roughly $43.78 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 AVGX market-implied 1-standard-deviation expected move is approximately 26.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVGX implied volatility affect this butterfly?

AVGX ATM IV is at 91.70% with IV rank near 30.06%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

AVGX Butterfly Strategy

AVGX (Daily Target 2X Long AVGO ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The Defiance Daily Target 2X Long AVGO ETF (AVGX) is engineered to provide magnified daily investment outcomes. Specifically, it aims to mirror, at a two-hundred percent (200%) rate, the daily percentage movements in the stock price of Broadcom Inc. (NASDAQ: AVGO), referred to as the "Underlying Security" or "AVGO". It is crucial to note that AVGX does not invest directly in AVGO shares. Due to its strategy of seeking daily leveraged returns, this Fund operates distinctly from most conventional exchange-traded funds. Consequently, it presents a heightened risk profile compared to investment vehicles that do not employ leverage. There is no assurance that AVGX will consistently achieve its stated objective.

AVGX (Daily Target 2X Long AVGO ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $97.8M, a beta of 3.79 versus the broader market, a 52-week range of 30.84-84.8, average daily share volume of 1.0M, a public-listing history dating back to 2024. These structural characteristics shape how AVGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.79 indicates AVGX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AVGX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVGX?

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 AVGX snapshot

As of June 29, 2026, spot at $45.73, ATM IV 91.70%, IV rank 30.06%, expected move 26.29%. The butterfly on AVGX 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 18-day expiry.

Why this butterfly structure on AVGX specifically: AVGX IV at 91.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 26.29% (roughly $12.02 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVGX should anchor to the underlying notional of $45.73 per share and to the trader's directional view on AVGX etf.

AVGX butterfly setup

The AVGX 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 AVGX near $45.73, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVGX chain at a 18-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 AVGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$43.00	$5.15
Sell 2	Call	$46.00	$3.55
Buy 1	Call	$48.00	$2.73

AVGX butterfly risk and reward

Net Premium / Debit: -$77.50
Max Profit (per contract): $218.98
Max Loss (per contract): -$77.50
Breakeven(s): $43.78
Risk / Reward Ratio: 2.826

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.

AVGX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVGX. 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%	-$77.50
$10.12	-77.9%	-$77.50
$20.23	-55.8%	-$77.50
$30.34	-33.7%	-$77.50
$40.45	-11.5%	-$77.50
$50.56	+10.6%	+$22.50
$60.67	+32.7%	+$22.50
$70.78	+54.8%	+$22.50
$80.89	+76.9%	+$22.50
$91.00	+99.0%	+$22.50

When traders use butterfly on AVGX

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

AVGX thesis for this butterfly

The market-implied 1-standard-deviation range for AVGX extends from approximately $33.71 on the downside to $57.75 on the upside. A AVGX long call butterfly is a pinning play: it pays maximum at the middle strike if AVGX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVGX IV rank near 30.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on AVGX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AVGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVGX-specific events.

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

Frequently asked questions

What is a butterfly on AVGX?: A butterfly on AVGX is the butterfly strategy applied to AVGX (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 AVGX etf trading near $45.73, the strikes shown on this page are snapped to the nearest listed AVGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVGX 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 AVGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 91.70%), the computed maximum profit is $218.98 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVGX butterfly?: The breakeven for the AVGX butterfly priced on this page is roughly $43.78 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 AVGX market-implied 1-standard-deviation expected move is approximately 26.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVGX?: Butterflies on AVGX are pinning bets - traders use them when they expect AVGX 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 AVGX implied volatility affect this butterfly?: AVGX ATM IV is at 91.70% with IV rank near 30.06%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.