How are IVOO 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 IVOO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $375.02 per contract and the computed maximum loss is -$199.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IVOO butterfly?

The breakeven for the IVOO butterfly priced on this page is roughly $117.99 and $126.01 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 IVOO market-implied 1-standard-deviation expected move is approximately 5.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IVOO implied volatility affect this butterfly?

IVOO ATM IV is at 19.20% with IV rank near 1.92%, 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.

IVOO Butterfly Strategy

IVOO (Vanguard S&P Mid-Cap 400 ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Invests in stocks in the S&P MidCap 400 Index, representing 400 medium-size U.S. companies.Focuses on closely tracking the index’s return, which is considered a gauge of overall U.S. mid-cap stock returns.Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds.More appropriate for long-term goals where your money’s growth is essential.On March 14, 2023, this ETF underwent a 2:1 share split, which decreased the price per share of the ETF with a proportionate increase in the number of shares outstanding. Historical share price data has not been adjusted for the split except where market data is being used, as indicated. Although certain data may reflect both pre-and post-split prices, returns are not impacted.

IVOO (Vanguard S&P Mid-Cap 400 ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $5.34B, a beta of 1.08 versus the broader market, a 52-week range of 99.59-127.08, average daily share volume of 87K, a public-listing history dating back to 2010. These structural characteristics shape how IVOO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places IVOO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IVOO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on IVOO?

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 IVOO snapshot

As of May 15, 2026, spot at $122.35, ATM IV 19.20%, IV rank 1.92%, expected move 5.50%. The butterfly on IVOO 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 IVOO specifically: IVOO IV at 19.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a IVOO butterfly, with a market-implied 1-standard-deviation move of approximately 5.50% (roughly $6.73 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 IVOO expiries trade a higher absolute premium for lower per-day decay. Position sizing on IVOO should anchor to the underlying notional of $122.35 per share and to the trader's directional view on IVOO etf.

IVOO butterfly setup

The IVOO 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 IVOO near $122.35, the first option leg uses a $116.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IVOO 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 IVOO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$116.00	$7.60
Sell 2	Call	$122.00	$3.23
Buy 1	Call	$128.00	$0.84

IVOO butterfly risk and reward

Net Premium / Debit: -$199.00
Max Profit (per contract): $375.02
Max Loss (per contract): -$199.00
Breakeven(s): $117.99, $126.01
Risk / Reward Ratio: 1.885

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.

IVOO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on IVOO. 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%	-$199.00
$27.06	-77.9%	-$199.00
$54.11	-55.8%	-$199.00
$81.16	-33.7%	-$199.00
$108.21	-11.6%	-$199.00
$135.27	+10.6%	-$199.00
$162.32	+32.7%	-$199.00
$189.37	+54.8%	-$199.00
$216.42	+76.9%	-$199.00
$243.47	+99.0%	-$199.00

When traders use butterfly on IVOO

Butterflies on IVOO are pinning bets - traders use them when they expect IVOO 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.

IVOO thesis for this butterfly

The market-implied 1-standard-deviation range for IVOO extends from approximately $115.62 on the downside to $129.08 on the upside. A IVOO long call butterfly is a pinning play: it pays maximum at the middle strike if IVOO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current IVOO IV rank near 1.92% 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 IVOO at 19.20%. As a Financial Services name, IVOO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IVOO-specific events.

IVOO 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. IVOO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IVOO alongside the broader basket even when IVOO-specific fundamentals are unchanged. Always rebuild the position from current IVOO chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on IVOO?: A butterfly on IVOO is the butterfly strategy applied to IVOO (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 IVOO etf trading near $122.35, the strikes shown on this page are snapped to the nearest listed IVOO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IVOO 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 IVOO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $375.02 per contract and the computed maximum loss is -$199.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IVOO butterfly?: The breakeven for the IVOO butterfly priced on this page is roughly $117.99 and $126.01 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 IVOO market-implied 1-standard-deviation expected move is approximately 5.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on IVOO?: Butterflies on IVOO are pinning bets - traders use them when they expect IVOO 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 IVOO implied volatility affect this butterfly?: IVOO ATM IV is at 19.20% with IV rank near 1.92%, 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.