VONV Butterfly Strategy
VONV (Vanguard Russell 1000 Value ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Invests in stocks in the Russell 1000 Value Index, a broadly diversified index predominantly made up of value stocks of large U.S. companies. Seeks to closely track the index’s return, which is considered a gauge of large-cap value U.S. stock returns. Offers high potential for investment growth; share value typically rises and falls more sharply than that of funds holding bonds. More appropriate for long-term goals where your money’s growth is essential.
VONV (Vanguard Russell 1000 Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $20.43B, a beta of 0.85 versus the broader market, a 52-week range of 81.12-103.16, average daily share volume of 1.6M, a public-listing history dating back to 2010. These structural characteristics shape how VONV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places VONV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VONV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on VONV?
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 VONV snapshot
As of May 15, 2026, spot at $101.95, ATM IV 22.80%, IV rank 23.86%, expected move 6.54%. The butterfly on VONV 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 VONV specifically: VONV IV at 22.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a VONV butterfly, with a market-implied 1-standard-deviation move of approximately 6.54% (roughly $6.66 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 VONV expiries trade a higher absolute premium for lower per-day decay. Position sizing on VONV should anchor to the underlying notional of $101.95 per share and to the trader's directional view on VONV etf.
VONV butterfly setup
The VONV 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 VONV near $101.95, the first option leg uses a $97.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VONV 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 VONV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $97.00 | $5.05 |
| Sell 2 | Call | $102.00 | $2.52 |
| Buy 1 | Call | $107.00 | $0.96 |
VONV butterfly risk and reward
- Net Premium / Debit
- -$97.00
- Max Profit (per contract)
- $356.27
- Max Loss (per contract)
- -$97.00
- Breakeven(s)
- $97.97, $106.03
- Risk / Reward Ratio
- 3.673
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.
VONV butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VONV. 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% | -$97.00 |
| $22.55 | -77.9% | -$97.00 |
| $45.09 | -55.8% | -$97.00 |
| $67.63 | -33.7% | -$97.00 |
| $90.17 | -11.6% | -$97.00 |
| $112.71 | +10.6% | -$97.00 |
| $135.25 | +32.7% | -$97.00 |
| $157.79 | +54.8% | -$97.00 |
| $180.33 | +76.9% | -$97.00 |
| $202.88 | +99.0% | -$97.00 |
When traders use butterfly on VONV
Butterflies on VONV are pinning bets - traders use them when they expect VONV 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.
VONV thesis for this butterfly
The market-implied 1-standard-deviation range for VONV extends from approximately $95.29 on the downside to $108.61 on the upside. A VONV long call butterfly is a pinning play: it pays maximum at the middle strike if VONV settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VONV IV rank near 23.86% 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 VONV at 22.80%. As a Financial Services name, VONV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VONV-specific events.
VONV 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. VONV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VONV alongside the broader basket even when VONV-specific fundamentals are unchanged. Always rebuild the position from current VONV chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VONV?
- A butterfly on VONV is the butterfly strategy applied to VONV (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 VONV etf trading near $101.95, the strikes shown on this page are snapped to the nearest listed VONV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VONV 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 VONV butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), the computed maximum profit is $356.27 per contract and the computed maximum loss is -$97.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VONV butterfly?
- The breakeven for the VONV butterfly priced on this page is roughly $97.97 and $106.03 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 VONV market-implied 1-standard-deviation expected move is approximately 6.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VONV?
- Butterflies on VONV are pinning bets - traders use them when they expect VONV 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 VONV implied volatility affect this butterfly?
- VONV ATM IV is at 22.80% with IV rank near 23.86%, 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.