MOAT Butterfly Strategy
MOAT (VanEck Morningstar Wide Moat ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
VanEck Morningstar Wide Moat ETF (MOAT) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar Wide Moat Focus IndexSM (MWMFTR), which is intended to track the overall performance of attractively priced companies with sustainable competitive advantages according to Morningstar's equity research team.
MOAT (VanEck Morningstar Wide Moat ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.71B, a beta of 0.95 versus the broader market, a 52-week range of 87.68-108.1, average daily share volume of 1.2M, a public-listing history dating back to 2012. These structural characteristics shape how MOAT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places MOAT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MOAT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on MOAT?
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 MOAT snapshot
As of May 15, 2026, spot at $99.47, ATM IV 14.70%, IV rank 1.80%, expected move 4.21%. The butterfly on MOAT 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 MOAT specifically: MOAT IV at 14.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a MOAT butterfly, with a market-implied 1-standard-deviation move of approximately 4.21% (roughly $4.19 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 MOAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOAT should anchor to the underlying notional of $99.47 per share and to the trader's directional view on MOAT etf.
MOAT butterfly setup
The MOAT 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 MOAT near $99.47, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOAT 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 MOAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $95.00 | $5.30 |
| Sell 2 | Call | $99.00 | $2.23 |
| Buy 1 | Call | $104.00 | $0.35 |
MOAT butterfly risk and reward
- Net Premium / Debit
- -$120.00
- Max Profit (per contract)
- $277.52
- Max Loss (per contract)
- -$220.00
- Breakeven(s)
- $96.20, $101.80
- Risk / Reward Ratio
- 1.261
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.
MOAT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MOAT. 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% | -$120.00 |
| $22.00 | -77.9% | -$120.00 |
| $43.99 | -55.8% | -$120.00 |
| $65.99 | -33.7% | -$120.00 |
| $87.98 | -11.6% | -$120.00 |
| $109.97 | +10.6% | -$220.00 |
| $131.96 | +32.7% | -$220.00 |
| $153.96 | +54.8% | -$220.00 |
| $175.95 | +76.9% | -$220.00 |
| $197.94 | +99.0% | -$220.00 |
When traders use butterfly on MOAT
Butterflies on MOAT are pinning bets - traders use them when they expect MOAT 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.
MOAT thesis for this butterfly
The market-implied 1-standard-deviation range for MOAT extends from approximately $95.28 on the downside to $103.66 on the upside. A MOAT long call butterfly is a pinning play: it pays maximum at the middle strike if MOAT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MOAT IV rank near 1.80% 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 MOAT at 14.70%. As a Financial Services name, MOAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOAT-specific events.
MOAT 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. MOAT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MOAT alongside the broader basket even when MOAT-specific fundamentals are unchanged. Always rebuild the position from current MOAT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MOAT?
- A butterfly on MOAT is the butterfly strategy applied to MOAT (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 MOAT etf trading near $99.47, the strikes shown on this page are snapped to the nearest listed MOAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MOAT 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 MOAT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 14.70%), the computed maximum profit is $277.52 per contract and the computed maximum loss is -$220.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MOAT butterfly?
- The breakeven for the MOAT butterfly priced on this page is roughly $96.20 and $101.80 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 MOAT market-implied 1-standard-deviation expected move is approximately 4.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MOAT?
- Butterflies on MOAT are pinning bets - traders use them when they expect MOAT 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 MOAT implied volatility affect this butterfly?
- MOAT ATM IV is at 14.70% with IV rank near 1.80%, 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.