How are AVMV 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 AVMV butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 16.60%), the computed maximum profit is $270.24 per contract and the computed maximum loss is -$96.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVMV butterfly?

The breakeven for the AVMV butterfly priced on this page is roughly $81.97 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 AVMV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVMV implied volatility affect this butterfly?

AVMV ATM IV is at 16.60% with IV rank near 9.14%, 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.

AVMV Butterfly Strategy

AVMV (Avantis U.S. Mid Cap Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Targeting a broad universe of U.S. mid-capitalization companies, this fund is structured to boost expected returns by concentrating on firms with low valuations and strong profitability metrics. It offers the typical advantages of passive indexing, such as extensive diversification, minimal portfolio churn, and clear exposure transparency. However, it also seeks to add significant value by making data-driven investment decisions informed by prevailing market prices. Furthermore, its highly efficient portfolio management and trading systems are engineered to optimize performance while simultaneously reducing superfluous risks and operational costs.

AVMV (Avantis U.S. Mid Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $374.4M, a beta of 0.92 versus the broader market, a 52-week range of 66.13-84.26, average daily share volume of 45K, a public-listing history dating back to 2023. These structural characteristics shape how AVMV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.92 places AVMV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVMV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVMV?

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.

AVMV snapshot

As of August 14, 2026, spot at $85.09, ATM IV 16.60%, IV rank 9.14%, expected move 4.76%. The butterfly on AVMV 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 7-day expiry.

Why this butterfly structure on AVMV specifically: AVMV IV at 16.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVMV butterfly, with a market-implied 1-standard-deviation move of approximately 4.76% (roughly $4.05 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVMV expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVMV should anchor to the underlying notional of $85.09 per share and to the trader's directional view on AVMV etf.

AVMV butterfly setup

The AVMV 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 AVMV at $85.09 on that close, 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 AVMV chain at a 7-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 AVMV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$81.00	$3.13
Sell 2	Call	$85.00	$1.39
Buy 1	Call	$87.00	$0.62

AVMV butterfly risk and reward

Net Premium / Debit: -$96.50
Max Profit (per contract): $270.24
Max Loss (per contract): -$96.50
Breakeven(s): $81.97
Risk / Reward Ratio: 2.800

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.

AVMV butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVMV. 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%	-$96.50
$18.82	-77.9%	-$96.50
$37.64	-55.8%	-$96.50
$56.45	-33.7%	-$96.50
$75.26	-11.6%	-$96.50
$94.07	+10.6%	+$103.50
$112.89	+32.7%	+$103.50
$131.70	+54.8%	+$103.50
$150.51	+76.9%	+$103.50
$169.32	+99.0%	+$103.50

When traders use butterfly on AVMV

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

AVMV thesis for this butterfly

The market-implied 1-standard-deviation range for AVMV extends from approximately $81.04 on the downside to $89.14 on the upside. A AVMV long call butterfly is a pinning play: it pays maximum at the middle strike if AVMV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVMV IV rank near 9.14% 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 AVMV at 16.60%. As a Financial Services name, AVMV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVMV-specific events.

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

Frequently asked questions

What is a butterfly on AVMV?: A butterfly on AVMV is the butterfly strategy applied to AVMV (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 AVMV etf at $85.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVMV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AVMV 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 AVMV butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 16.60%), the computed maximum profit is $270.24 per contract and the computed maximum loss is -$96.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVMV butterfly?: The breakeven for the AVMV butterfly priced on this page is roughly $81.97 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 AVMV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVMV?: Butterflies on AVMV are pinning bets - traders use them when they expect AVMV 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 AVMV implied volatility affect this butterfly?: AVMV ATM IV is at 16.60% with IV rank near 9.14%, 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.