How are AVXX 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 AVXX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 112.90%), the computed maximum profit is $83.19 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 AVXX butterfly?

The breakeven for the AVXX butterfly priced on this page is roughly $20.12 and $21.88 at expiration, derived from the September 29, 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 AVXX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVXX implied volatility affect this butterfly?

Current AVXX ATM IV is 112.90%; IV rank context is unavailable in the current snapshot.

AVXX Butterfly Strategy

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

This actively managed Exchange Traded Fund (ETF) aims to generate two times (200%) the daily performance of an underlying security. It achieves this magnified exposure by investing in derivatives, specifically through the use of swap agreements and/or exchange-traded options contracts. The fund is expected to commit between 40% and 60% of its capital as collateral for these swap arrangements or to cover the premiums for purchased options. It is important to note that the fund maintains a non-diversified portfolio.

AVXX (Defiance Daily Target 2X Long AVAV ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $8.3M, a beta of 4.45 versus the broader market, a 52-week range of 20.41-368.73, average daily share volume of 143K, a public-listing history dating back to 2025. These structural characteristics shape how AVXX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.45 indicates AVXX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AVXX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on AVXX?

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.

AVXX snapshot

As of September 29, 2026, spot at $21.36, ATM IV 112.90%, expected move 32.37%. The butterfly on AVXX below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this butterfly structure on AVXX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AVXX is inferred from ATM IV at 112.90% alone, with a market-implied 1-standard-deviation move of approximately 32.37% (roughly $6.91 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVXX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVXX should anchor to the underlying notional of $21.36 per share and to the trader's directional view on AVXX etf.

AVXX butterfly setup

The AVXX butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AVXX at $21.36 on that close, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVXX chain at a 17-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 AVXX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$20.00	$2.93
Sell 2	Call	$21.00	$2.40
Buy 1	Call	$22.00	$2.00

AVXX butterfly risk and reward

Net Premium / Debit: -$12.50
Max Profit (per contract): $83.19
Max Loss (per contract): -$12.50
Breakeven(s): $20.12, $21.88
Risk / Reward Ratio: 6.655

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.

AVXX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on AVXX. 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%	-$12.50
$4.73	-77.8%	-$12.50
$9.45	-55.7%	-$12.50
$14.18	-33.6%	-$12.50
$18.90	-11.5%	-$12.50
$23.62	+10.6%	-$12.50
$28.34	+32.7%	-$12.50
$33.06	+54.8%	-$12.50
$37.78	+76.9%	-$12.50
$42.51	+99.0%	-$12.50

When traders use butterfly on AVXX

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

AVXX thesis for this butterfly

The market-implied 1-standard-deviation range for AVXX extends from approximately $14.45 on the downside to $28.27 on the upside. A AVXX long call butterfly is a pinning play: it pays maximum at the middle strike if AVXX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, AVXX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVXX-specific events.

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

Frequently asked questions

What is a butterfly on AVXX?: A butterfly on AVXX is the butterfly strategy applied to AVXX (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 AVXX etf at $21.36 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed AVXX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AVXX 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 AVXX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 112.90%), the computed maximum profit is $83.19 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 AVXX butterfly?: The breakeven for the AVXX butterfly priced on this page is roughly $20.12 and $21.88 at expiration, derived from the September 29, 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 AVXX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on AVXX?: Butterflies on AVXX are pinning bets - traders use them when they expect AVXX 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 AVXX implied volatility affect this butterfly?: Current AVXX ATM IV is 112.90%; IV rank context is unavailable in the current snapshot.