FIVA Butterfly Strategy
FIVA (Fidelity International Value Factor ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
This fund aims to identify and invest in international companies whose stock prices appear low when measured against their underlying financial strength. This investment approach, focusing on undervalued foreign equities, has historically demonstrated a consistent tendency to deliver superior returns compared to the broader market over the long term.
FIVA (Fidelity International Value Factor ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $379.2M, a beta of 0.89 versus the broader market, a 52-week range of 30.324-40.31, average daily share volume of 86K, a public-listing history dating back to 2018. These structural characteristics shape how FIVA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.89 places FIVA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FIVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FIVA?
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.
FIVA snapshot
As of August 14, 2026, spot at $40.18, ATM IV 20.50%, IV rank 18.61%, expected move 5.88%. The butterfly on FIVA 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 35-day expiry.
Why this butterfly structure on FIVA specifically: FIVA IV at 20.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a FIVA butterfly, with a market-implied 1-standard-deviation move of approximately 5.88% (roughly $2.36 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIVA should anchor to the underlying notional of $40.18 per share and to the trader's directional view on FIVA etf.
FIVA butterfly setup
The FIVA 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 FIVA at $40.18 on that close, the first option leg uses a $38.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIVA chain at a 35-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 FIVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $38.17 | N/A |
| Sell 2 | Call | $40.18 | N/A |
| Buy 1 | Call | $42.19 | N/A |
FIVA 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.
FIVA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FIVA. 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 FIVA
Butterflies on FIVA are pinning bets - traders use them when they expect FIVA 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.
FIVA thesis for this butterfly
The market-implied 1-standard-deviation range for FIVA extends from approximately $37.82 on the downside to $42.54 on the upside. A FIVA long call butterfly is a pinning play: it pays maximum at the middle strike if FIVA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FIVA IV rank near 18.61% 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 FIVA at 20.50%. As a Financial Services name, FIVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIVA-specific events.
FIVA 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. FIVA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIVA alongside the broader basket even when FIVA-specific fundamentals are unchanged. Always rebuild the position from current FIVA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FIVA?
- A butterfly on FIVA is the butterfly strategy applied to FIVA (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 FIVA etf at $40.18 on the most recent close, the strikes shown on this page are snapped to the nearest listed FIVA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FIVA 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 FIVA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 20.50%), 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 FIVA butterfly?
- The breakeven for the FIVA 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 FIVA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FIVA?
- Butterflies on FIVA are pinning bets - traders use them when they expect FIVA 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 FIVA implied volatility affect this butterfly?
- FIVA ATM IV is at 20.50% with IV rank near 18.61%, 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.