IDLV Butterfly Strategy
IDLV (Invesco S&P International Developed Low Volatility ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco S&P International Developed Low Volatility ETF (Fund) is based on the S&P BMI International Developed Low Volatility Index (Index). The Fund generally will invest at least 90% of its total assets in the securities of companies that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poor's Dow Jones Industrial measures the realized volatility of the Index's 200 constituents over the trailing 12 months and weights constituents so that the least volatile stocks receive the highest weights. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations over time. The Fund and the Index are rebalanced and reconstituted quarterly.
IDLV (Invesco S&P International Developed Low Volatility ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $371.0M, a beta of 0.67 versus the broader market, a 52-week range of 31.98-36.97, average daily share volume of 61K, a public-listing history dating back to 2012. These structural characteristics shape how IDLV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates IDLV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. IDLV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on IDLV?
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 IDLV snapshot
As of May 15, 2026, spot at $35.49, ATM IV 38.20%, IV rank 14.49%, expected move 10.95%. The butterfly on IDLV 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 IDLV specifically: IDLV IV at 38.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a IDLV butterfly, with a market-implied 1-standard-deviation move of approximately 10.95% (roughly $3.89 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 IDLV expiries trade a higher absolute premium for lower per-day decay. Position sizing on IDLV should anchor to the underlying notional of $35.49 per share and to the trader's directional view on IDLV etf.
IDLV butterfly setup
The IDLV 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 IDLV near $35.49, the first option leg uses a $33.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IDLV 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 IDLV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $33.72 | N/A |
| Sell 2 | Call | $35.49 | N/A |
| Buy 1 | Call | $37.26 | N/A |
IDLV 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.
IDLV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on IDLV. 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 IDLV
Butterflies on IDLV are pinning bets - traders use them when they expect IDLV 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.
IDLV thesis for this butterfly
The market-implied 1-standard-deviation range for IDLV extends from approximately $31.60 on the downside to $39.38 on the upside. A IDLV long call butterfly is a pinning play: it pays maximum at the middle strike if IDLV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IDLV IV rank near 14.49% 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 IDLV at 38.20%. As a Financial Services name, IDLV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IDLV-specific events.
IDLV 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. IDLV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IDLV alongside the broader basket even when IDLV-specific fundamentals are unchanged. Always rebuild the position from current IDLV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on IDLV?
- A butterfly on IDLV is the butterfly strategy applied to IDLV (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 IDLV etf trading near $35.49, the strikes shown on this page are snapped to the nearest listed IDLV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IDLV 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 IDLV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.20%), 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 IDLV butterfly?
- The breakeven for the IDLV 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 IDLV market-implied 1-standard-deviation expected move is approximately 10.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on IDLV?
- Butterflies on IDLV are pinning bets - traders use them when they expect IDLV 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 IDLV implied volatility affect this butterfly?
- IDLV ATM IV is at 38.20% with IV rank near 14.49%, 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.