How are AVSU 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 AVSU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 18.10%), the computed maximum profit is $296.10 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVSU butterfly?

The breakeven for the AVSU butterfly priced on this page is roughly $81.00 and $87.00 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 AVSU market-implied 1-standard-deviation expected move is approximately 5.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVSU implied volatility affect this butterfly?

AVSU ATM IV is at 18.10% with IV rank near 4.14%, 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.

AVSU Butterfly Strategy

AVSU (Avantis Responsible U.S. Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Invests in a broad set of U.S. companies across all market capitalizations and is designed to increase expected returns* by overweighting securities we believe to be trading at lower valuations and with higher profitability ratios**.Limits the investable universe of companies by screening out those that raise concerns based on the team's evaluation of multiple Environmental, Social and Governance (ESG) metrics and pursues the benefits associated with indexing but with the ability to add value by making investment decisions using information based on proprietary evaluations.Efficient portfolio management and trading process that is designed to enhance returns while seeking to reduce unnecessary risks and transaction costs.Built to fit seamlessly into an investor's asset allocation.

AVSU (Avantis Responsible U.S. Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $439.8M, a beta of 1.11 versus the broader market, a 52-week range of 63.93-85.08, average daily share volume of 15K, a public-listing history dating back to 2022. These structural characteristics shape how AVSU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places AVSU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVSU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVSU?

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 AVSU snapshot

As of May 15, 2026, spot at $84.38, ATM IV 18.10%, IV rank 4.14%, expected move 5.19%. The butterfly on AVSU 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 98-day expiry.

Why this butterfly structure on AVSU specifically: AVSU IV at 18.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVSU butterfly, with a market-implied 1-standard-deviation move of approximately 5.19% (roughly $4.38 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 AVSU expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVSU should anchor to the underlying notional of $84.38 per share and to the trader's directional view on AVSU etf.

AVSU butterfly setup

The AVSU 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 AVSU near $84.38, 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 AVSU 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 AVSU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$80.00	$6.35
Sell 2	Call	$84.00	$3.53
Buy 1	Call	$88.00	$1.70

AVSU butterfly risk and reward

Net Premium / Debit: -$100.00
Max Profit (per contract): $296.10
Max Loss (per contract): -$100.00
Breakeven(s): $81.00, $87.00
Risk / Reward Ratio: 2.961

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.

AVSU butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVSU. 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%	-$100.00
$18.67	-77.9%	-$100.00
$37.32	-55.8%	-$100.00
$55.98	-33.7%	-$100.00
$74.63	-11.6%	-$100.00
$93.29	+10.6%	-$100.00
$111.94	+32.7%	-$100.00
$130.60	+54.8%	-$100.00
$149.26	+76.9%	-$100.00
$167.91	+99.0%	-$100.00

When traders use butterfly on AVSU

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

AVSU thesis for this butterfly

The market-implied 1-standard-deviation range for AVSU extends from approximately $80.00 on the downside to $88.76 on the upside. A AVSU long call butterfly is a pinning play: it pays maximum at the middle strike if AVSU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVSU IV rank near 4.14% 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 AVSU at 18.10%. As a Financial Services name, AVSU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVSU-specific events.

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

Frequently asked questions

What is a butterfly on AVSU?: A butterfly on AVSU is the butterfly strategy applied to AVSU (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 AVSU etf trading near $84.38, the strikes shown on this page are snapped to the nearest listed AVSU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVSU 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 AVSU butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 18.10%), the computed maximum profit is $296.10 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVSU butterfly?: The breakeven for the AVSU butterfly priced on this page is roughly $81.00 and $87.00 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 AVSU market-implied 1-standard-deviation expected move is approximately 5.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVSU?: Butterflies on AVSU are pinning bets - traders use them when they expect AVSU 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 AVSU implied volatility affect this butterfly?: AVSU ATM IV is at 18.10% with IV rank near 4.14%, 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.