FVAL Butterfly Strategy
FVAL (Fidelity Value Factor ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Capitalizes on cheap stocks, with low prices relative to fundamentals, which have historically outperformed the market over time.
FVAL (Fidelity Value Factor ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.22B, a beta of 0.93 versus the broader market, a 52-week range of 60.07-77.99, average daily share volume of 47K, a public-listing history dating back to 2016. These structural characteristics shape how FVAL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places FVAL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FVAL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FVAL?
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 FVAL snapshot
As of May 14, 2026, spot at $78.37, ATM IV 16.40%, IV rank 9.05%, expected move 4.70%. The butterfly on FVAL 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 35-day expiry.
Why this butterfly structure on FVAL specifically: FVAL IV at 16.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a FVAL butterfly, with a market-implied 1-standard-deviation move of approximately 4.70% (roughly $3.68 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 FVAL expiries trade a higher absolute premium for lower per-day decay. Position sizing on FVAL should anchor to the underlying notional of $78.37 per share and to the trader's directional view on FVAL etf.
FVAL butterfly setup
The FVAL 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 FVAL near $78.37, the first option leg uses a $74.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FVAL 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 FVAL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $74.45 | N/A |
| Sell 2 | Call | $78.37 | N/A |
| Buy 1 | Call | $82.29 | N/A |
FVAL 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.
FVAL butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FVAL. 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 FVAL
Butterflies on FVAL are pinning bets - traders use them when they expect FVAL 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.
FVAL thesis for this butterfly
The market-implied 1-standard-deviation range for FVAL extends from approximately $74.69 on the downside to $82.05 on the upside. A FVAL long call butterfly is a pinning play: it pays maximum at the middle strike if FVAL settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current FVAL IV rank near 9.05% 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 FVAL at 16.40%. As a Financial Services name, FVAL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FVAL-specific events.
FVAL 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. FVAL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FVAL alongside the broader basket even when FVAL-specific fundamentals are unchanged. Always rebuild the position from current FVAL chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FVAL?
- A butterfly on FVAL is the butterfly strategy applied to FVAL (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 FVAL etf trading near $78.37, the strikes shown on this page are snapped to the nearest listed FVAL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FVAL 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 FVAL butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 16.40%), 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 FVAL butterfly?
- The breakeven for the FVAL butterfly priced on this page is no defined breakeven on the modeled curve 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 FVAL market-implied 1-standard-deviation expected move is approximately 4.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FVAL?
- Butterflies on FVAL are pinning bets - traders use them when they expect FVAL 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 FVAL implied volatility affect this butterfly?
- FVAL ATM IV is at 16.40% with IV rank near 9.05%, 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.