VOT Butterfly Strategy
VOT (Vanguard Morningstar Mid-Cap Growth ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This ETF is designed to mirror the investment returns of the CRSP US Mid Cap Growth Index, an index that gauges the performance of mid-sized companies with strong growth characteristics. It provides investors with a straightforward means to replicate the financial outcomes of a varied collection of growing, medium-sized enterprises. The fund adheres to a passively managed, full-replication strategy, seeking to hold all securities within its benchmark index.
VOT (Vanguard Morningstar Mid-Cap Growth ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $36.50B, a beta of 1.16 versus the broader market, a 52-week range of 248.23-311.3, average daily share volume of 214K, a public-listing history dating back to 2006. These structural characteristics shape how VOT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places VOT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VOT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on VOT?
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.
VOT snapshot
As of August 14, 2026, spot at $313.88, ATM IV 13.70%, IV rank 0.00%, expected move 3.93%. The butterfly on VOT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on VOT specifically: VOT IV at 13.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a VOT butterfly, with a market-implied 1-standard-deviation move of approximately 3.93% (roughly $12.33 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VOT expiries trade a higher absolute premium for lower per-day decay. Position sizing on VOT should anchor to the underlying notional of $313.88 per share and to the trader's directional view on VOT etf.
VOT butterfly setup
The VOT butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With VOT at $313.88 on that close, the first option leg uses a $300.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VOT chain at a 35-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 VOT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $300.00 | $16.75 |
| Sell 2 | Call | $315.00 | $6.00 |
| Buy 1 | Call | $330.00 | $0.92 |
VOT butterfly risk and reward
- Net Premium / Debit
- -$567.00
- Max Profit (per contract)
- $886.77
- Max Loss (per contract)
- -$567.00
- Breakeven(s)
- $305.67, $324.33
- Risk / Reward Ratio
- 1.564
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.
VOT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VOT. 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% | -$567.00 |
| $69.41 | -77.9% | -$567.00 |
| $138.81 | -55.8% | -$567.00 |
| $208.21 | -33.7% | -$567.00 |
| $277.61 | -11.6% | -$567.00 |
| $347.01 | +10.6% | -$567.00 |
| $416.41 | +32.7% | -$567.00 |
| $485.81 | +54.8% | -$567.00 |
| $555.21 | +76.9% | -$567.00 |
| $624.61 | +99.0% | -$567.00 |
When traders use butterfly on VOT
Butterflies on VOT are pinning bets - traders use them when they expect VOT 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.
VOT thesis for this butterfly
The market-implied 1-standard-deviation range for VOT extends from approximately $301.55 on the downside to $326.21 on the upside. A VOT long call butterfly is a pinning play: it pays maximum at the middle strike if VOT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VOT IV rank near 0.00% 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 VOT at 13.70%. As a Financial Services name, VOT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VOT-specific events.
VOT 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. VOT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VOT alongside the broader basket even when VOT-specific fundamentals are unchanged. Always rebuild the position from current VOT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VOT?
- A butterfly on VOT is the butterfly strategy applied to VOT (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 VOT etf at $313.88 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed VOT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are VOT 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 VOT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 13.70%), the computed maximum profit is $886.77 per contract and the computed maximum loss is -$567.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VOT butterfly?
- The breakeven for the VOT butterfly priced on this page is roughly $305.67 and $324.33 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The VOT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VOT?
- Butterflies on VOT are pinning bets - traders use them when they expect VOT 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 VOT implied volatility affect this butterfly?
- VOT ATM IV is at 13.70% with IV rank near 0.00%, 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.