AVMC Butterfly Strategy
AVMC (Avantis U.S. Mid Cap Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This exchange-traded fund primarily invests in a wide range of U.S. companies with medium market capitalizations. It aims to maximize potential returns by emphasizing securities that are undervalued and exhibit superior profitability. The fund blends the advantages of passive investing, such as broad diversification, low portfolio turnover, transparency, and tax efficiency, with active management that leverages real-time market pricing to enhance value. Its efficient investment management and trading strategies are designed to optimize investor returns while carefully mitigating unnecessary risks and costs.
AVMC (Avantis U.S. Mid Cap Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $332.4M, a beta of 0.94 versus the broader market, a 52-week range of 66.64-82.6, average daily share volume of 29K, a public-listing history dating back to 2023. These structural characteristics shape how AVMC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places AVMC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVMC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AVMC?
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.
AVMC snapshot
As of August 14, 2026, spot at $83.69, ATM IV 20.40%, IV rank 23.55%, expected move 5.85%. The butterfly on AVMC 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 98-day expiry.
Why this butterfly structure on AVMC specifically: AVMC IV at 20.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVMC butterfly, with a market-implied 1-standard-deviation move of approximately 5.85% (roughly $4.89 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVMC expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVMC should anchor to the underlying notional of $83.69 per share and to the trader's directional view on AVMC etf.
AVMC butterfly setup
The AVMC 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 AVMC at $83.69 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVMC chain at a 98-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 AVMC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $4.45 |
| Sell 2 | Call | $84.00 | $1.90 |
| Buy 1 | Call | $85.00 | $1.51 |
AVMC butterfly risk and reward
- Net Premium / Debit
- -$216.00
- Max Profit (per contract)
- $172.45
- Max Loss (per contract)
- -$216.00
- Breakeven(s)
- $82.16
- Risk / Reward Ratio
- 0.798
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.
AVMC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AVMC. 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% | -$216.00 |
| $18.51 | -77.9% | -$216.00 |
| $37.02 | -55.8% | -$216.00 |
| $55.52 | -33.7% | -$216.00 |
| $74.02 | -11.6% | -$216.00 |
| $92.53 | +10.6% | +$84.00 |
| $111.03 | +32.7% | +$84.00 |
| $129.53 | +54.8% | +$84.00 |
| $148.04 | +76.9% | +$84.00 |
| $166.54 | +99.0% | +$84.00 |
When traders use butterfly on AVMC
Butterflies on AVMC are pinning bets - traders use them when they expect AVMC 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.
AVMC thesis for this butterfly
The market-implied 1-standard-deviation range for AVMC extends from approximately $78.80 on the downside to $88.58 on the upside. A AVMC long call butterfly is a pinning play: it pays maximum at the middle strike if AVMC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVMC IV rank near 23.55% 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 AVMC at 20.40%. As a Financial Services name, AVMC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVMC-specific events.
AVMC 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. AVMC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVMC alongside the broader basket even when AVMC-specific fundamentals are unchanged. Always rebuild the position from current AVMC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AVMC?
- A butterfly on AVMC is the butterfly strategy applied to AVMC (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 AVMC etf at $83.69 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVMC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AVMC 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 AVMC butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.40%), the computed maximum profit is $172.45 per contract and the computed maximum loss is -$216.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVMC butterfly?
- The breakeven for the AVMC butterfly priced on this page is roughly $82.16 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 AVMC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AVMC?
- Butterflies on AVMC are pinning bets - traders use them when they expect AVMC 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 AVMC implied volatility affect this butterfly?
- AVMC ATM IV is at 20.40% with IV rank near 23.55%, 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.