FELV Butterfly Strategy
FELV (Fidelity Enhanced Large Cap Value ETF ), in the Financial Services sector, (Asset Management industry), listed on AMEX.
A U.S. equity strategy maintaining a large-cap value profile, leveraging a disciplined approach investing in companies with attractive characteristics.
FELV (Fidelity Enhanced Large Cap Value ETF ) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.93B, a beta of 0.85 versus the broader market, a 52-week range of 30.133-38.61, average daily share volume of 232K, a public-listing history dating back to 2023. These structural characteristics shape how FELV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places FELV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FELV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FELV?
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 FELV snapshot
As of May 15, 2026, spot at $38.50, ATM IV 33.70%, IV rank 32.38%, expected move 9.66%. The butterfly on FELV 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 34-day expiry.
Why this butterfly structure on FELV specifically: FELV IV at 33.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.66% (roughly $3.72 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FELV expiries trade a higher absolute premium for lower per-day decay. Position sizing on FELV should anchor to the underlying notional of $38.50 per share and to the trader's directional view on FELV etf.
FELV butterfly setup
The FELV 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 FELV near $38.50, 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 FELV chain at a 34-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 FELV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $2.39 |
| Sell 2 | Call | $38.00 | $1.81 |
| Buy 1 | Call | $40.00 | $0.96 |
FELV butterfly risk and reward
- Net Premium / Debit
- +$27.00
- Max Profit (per contract)
- $119.47
- Max Loss (per contract)
- -$73.00
- Breakeven(s)
- $39.27
- Risk / Reward Ratio
- 1.637
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.
FELV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FELV. 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% | +$27.00 |
| $8.52 | -77.9% | +$27.00 |
| $17.03 | -55.8% | +$27.00 |
| $25.54 | -33.7% | +$27.00 |
| $34.06 | -11.5% | +$27.00 |
| $42.57 | +10.6% | -$73.00 |
| $51.08 | +32.7% | -$73.00 |
| $59.59 | +54.8% | -$73.00 |
| $68.10 | +76.9% | -$73.00 |
| $76.61 | +99.0% | -$73.00 |
When traders use butterfly on FELV
Butterflies on FELV are pinning bets - traders use them when they expect FELV 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.
FELV thesis for this butterfly
The market-implied 1-standard-deviation range for FELV extends from approximately $34.78 on the downside to $42.22 on the upside. A FELV long call butterfly is a pinning play: it pays maximum at the middle strike if FELV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FELV IV rank near 32.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on FELV should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FELV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FELV-specific events.
FELV 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. FELV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FELV alongside the broader basket even when FELV-specific fundamentals are unchanged. Always rebuild the position from current FELV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FELV?
- A butterfly on FELV is the butterfly strategy applied to FELV (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 FELV etf trading near $38.50, the strikes shown on this page are snapped to the nearest listed FELV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FELV 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 FELV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 33.70%), the computed maximum profit is $119.47 per contract and the computed maximum loss is -$73.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FELV butterfly?
- The breakeven for the FELV butterfly priced on this page is roughly $39.27 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 FELV market-implied 1-standard-deviation expected move is approximately 9.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FELV?
- Butterflies on FELV are pinning bets - traders use them when they expect FELV 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 FELV implied volatility affect this butterfly?
- FELV ATM IV is at 33.70% with IV rank near 32.38%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.