DFSV Butterfly Strategy
DFSV (U.S. Small Cap Value Portfolio ETF Class Shares), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This fund utilizes a market-capitalization weighted methodology to invest in a broad and diverse selection of readily tradable securities from U.S. small-cap companies, identified by the Advisor as value stocks. This approach means that companies with higher market capitalizations generally hold a more substantial proportion within the portfolio compared to those with lower market capitalizations. Under normal operating conditions, and as a flexible guideline, the portfolio aims to commit at least 80% of its net assets to equities of small-capitalization U.S. firms.
DFSV (U.S. Small Cap Value Portfolio ETF Class Shares) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.81B, a beta of 1.03 versus the broader market, a 52-week range of 30.32-40.95, average daily share volume of 926K, a public-listing history dating back to 2022. These structural characteristics shape how DFSV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places DFSV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DFSV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on DFSV?
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.
DFSV snapshot
As of November 13, 2026, spot at $39.05. The butterfly on DFSV below is built from the November 13, 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 DFSV specifically: IV rank is unavailable in the current snapshot, so regime-based timing for DFSV is inferred from ATM IV alone. The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DFSV expiries trade a higher absolute premium for lower per-day decay. Position sizing on DFSV should anchor to the underlying notional of $39.05 per share and to the trader's directional view on DFSV etf.
DFSV butterfly setup
The DFSV butterfly below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DFSV at $39.05 on that close, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DFSV 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 DFSV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $2.05 |
| Sell 2 | Call | $39.00 | $1.03 |
| Buy 1 | Call | $41.00 | $0.33 |
DFSV butterfly risk and reward
- Net Premium / Debit
- -$32.00
- Max Profit (per contract)
- $153.88
- Max Loss (per contract)
- -$32.00
- Breakeven(s)
- $37.32, $40.68
- Risk / Reward Ratio
- 4.809
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.
DFSV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on DFSV. 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% | -$32.00 |
| $8.64 | -77.9% | -$32.00 |
| $17.28 | -55.8% | -$32.00 |
| $25.91 | -33.7% | -$32.00 |
| $34.54 | -11.5% | -$32.00 |
| $43.18 | +10.6% | -$32.00 |
| $51.81 | +32.7% | -$32.00 |
| $60.44 | +54.8% | -$32.00 |
| $69.07 | +76.9% | -$32.00 |
| $77.71 | +99.0% | -$32.00 |
When traders use butterfly on DFSV
Butterflies on DFSV are pinning bets - traders use them when they expect DFSV 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.
DFSV thesis for this butterfly
A DFSV long call butterfly is a pinning play: it pays maximum at the middle strike if DFSV 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, DFSV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DFSV-specific events.
DFSV 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. DFSV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DFSV alongside the broader basket even when DFSV-specific fundamentals are unchanged. Always rebuild the position from current DFSV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on DFSV?
- A butterfly on DFSV is the butterfly strategy applied to DFSV (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 DFSV etf at $39.05 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed DFSV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DFSV 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 DFSV butterfly priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $153.88 per contract and the computed maximum loss is -$32.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DFSV butterfly?
- The breakeven for the DFSV butterfly priced on this page is roughly $37.32 and $40.68 at expiration, derived from the November 13, 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.
- When should you consider a butterfly on DFSV?
- Butterflies on DFSV are pinning bets - traders use them when they expect DFSV 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 DFSV implied volatility affect this butterfly?
- Current DFSV ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.