How are VFVA 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 VFVA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $369.91 per contract and the computed maximum loss is -$307.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VFVA butterfly?

The breakeven for the VFVA butterfly priced on this page is roughly $136.07 and $143.93 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 VFVA 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 VFVA implied volatility affect this butterfly?

VFVA ATM IV is at 19.20% with IV rank near 31.62%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

VFVA Butterfly Strategy

VFVA (Vanguard U.S. Value Factor ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

Advisor uses a rules-based quantitative model to evaluate U.S. common stocks.Fund invests in stocks with relatively lower market valuations relative to fundamentals.The portfolio includes a diverse mix of stocks representing many different market capitalizations (large, mid, and small), market sectors, and industry groups.Seeks long-term capital appreciation.Typically, at least 80% of the fund’s assets will be invested in securities issued by U.S. companies.Note: The Value factor is measured by book value/price, forward earnings/price, operating cash flows/price (for non-financials only).

VFVA (Vanguard U.S. Value Factor ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $736.8M, a beta of 0.97 versus the broader market, a 52-week range of 111.24-145.5, average daily share volume of 13K, a public-listing history dating back to 2018. These structural characteristics shape how VFVA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.97 places VFVA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VFVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on VFVA?

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 VFVA snapshot

As of May 15, 2026, spot at $140.47, ATM IV 19.20%, IV rank 31.62%, expected move 5.50%. The butterfly on VFVA 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 VFVA specifically: VFVA IV at 19.20% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 5.50% (roughly $7.73 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 VFVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on VFVA should anchor to the underlying notional of $140.47 per share and to the trader's directional view on VFVA etf.

VFVA butterfly setup

The VFVA 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 VFVA near $140.47, the first option leg uses a $133.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VFVA 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 VFVA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$133.00	$8.70
Sell 2	Call	$140.00	$3.60
Buy 1	Call	$145.00	$1.57

VFVA butterfly risk and reward

Net Premium / Debit: -$307.00
Max Profit (per contract): $369.91
Max Loss (per contract): -$307.00
Breakeven(s): $136.07, $143.93
Risk / Reward Ratio: 1.205

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.

VFVA butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VFVA. 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%	-$307.00
$31.07	-77.9%	-$307.00
$62.13	-55.8%	-$307.00
$93.18	-33.7%	-$307.00
$124.24	-11.6%	-$307.00
$155.30	+10.6%	-$107.00
$186.36	+32.7%	-$107.00
$217.41	+54.8%	-$107.00
$248.47	+76.9%	-$107.00
$279.53	+99.0%	-$107.00

When traders use butterfly on VFVA

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

VFVA thesis for this butterfly

The market-implied 1-standard-deviation range for VFVA extends from approximately $132.74 on the downside to $148.20 on the upside. A VFVA long call butterfly is a pinning play: it pays maximum at the middle strike if VFVA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VFVA IV rank near 31.62% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on VFVA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, VFVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VFVA-specific events.

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

Frequently asked questions

What is a butterfly on VFVA?: A butterfly on VFVA is the butterfly strategy applied to VFVA (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 VFVA etf trading near $140.47, the strikes shown on this page are snapped to the nearest listed VFVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VFVA 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 VFVA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.20%), the computed maximum profit is $369.91 per contract and the computed maximum loss is -$307.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VFVA butterfly?: The breakeven for the VFVA butterfly priced on this page is roughly $136.07 and $143.93 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 VFVA 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 VFVA?: Butterflies on VFVA are pinning bets - traders use them when they expect VFVA 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 VFVA implied volatility affect this butterfly?: VFVA ATM IV is at 19.20% with IV rank near 31.62%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.