FFLV Butterfly Strategy
FFLV (Fidelity Fundamental Large Cap), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund will normally invest at least 80% of the fund’s assets in equity securities of companies with large market capitalizations (which, for purposes of this fund, are those companies with market capitalizations similar to companies in the Russell 1000® Index or the S&P 500® Index). The fund is non-diversified.
FFLV (Fidelity Fundamental Large Cap) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $18.2M, a beta of 0.66 versus the broader market, a 52-week range of 22.64-29.32, average daily share volume of 4K, a public-listing history dating back to 2024. These structural characteristics shape how FFLV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates FFLV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FFLV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FFLV?
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.
FFLV snapshot
As of September 29, 2026, spot at $27.73, ATM IV 36.10%, IV rank 17.72%, expected move 10.35%. The butterfly on FFLV below is built from the 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 FFLV specifically: FFLV IV at 36.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a FFLV butterfly, with a market-implied 1-standard-deviation move of approximately 10.35% (roughly $2.87 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 FFLV expiries trade a higher absolute premium for lower per-day decay. Position sizing on FFLV should anchor to the underlying notional of $27.73 per share and to the trader's directional view on FFLV etf.
FFLV butterfly setup
The FFLV 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 FFLV at $27.73 on that close, the first option leg uses a $26.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FFLV 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 FFLV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.34 | N/A |
| Sell 2 | Call | $27.73 | N/A |
| Buy 1 | Call | $29.12 | N/A |
FFLV butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FFLV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FFLV. 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.
When traders use butterfly on FFLV
Butterflies on FFLV are pinning bets - traders use them when they expect FFLV 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.
FFLV thesis for this butterfly
The market-implied 1-standard-deviation range for FFLV extends from approximately $24.86 on the downside to $30.60 on the upside. A FFLV long call butterfly is a pinning play: it pays maximum at the middle strike if FFLV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FFLV IV rank near 17.72% 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 FFLV at 36.10%. As a Financial Services name, FFLV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FFLV-specific events.
FFLV 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. FFLV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FFLV alongside the broader basket even when FFLV-specific fundamentals are unchanged. Always rebuild the position from current FFLV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FFLV?
- A butterfly on FFLV is the butterfly strategy applied to FFLV (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 FFLV etf at $27.73 on the most recent close, the strikes shown on this page are snapped to the nearest listed FFLV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FFLV 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 FFLV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 36.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FFLV butterfly?
- The breakeven for the FFLV butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 FFLV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FFLV?
- Butterflies on FFLV are pinning bets - traders use them when they expect FFLV 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 FFLV implied volatility affect this butterfly?
- FFLV ATM IV is at 36.10% with IV rank near 17.72%, 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.