How are VSGX 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 VSGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.40%), the computed maximum profit is $270.17 per contract and the computed maximum loss is -$114.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VSGX butterfly?

The breakeven for the VSGX butterfly priced on this page is roughly $79.14 and $84.86 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 VSGX market-implied 1-standard-deviation expected move is approximately 5.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VSGX implied volatility affect this butterfly?

VSGX ATM IV is at 19.40% with IV rank near 7.17%, 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.

VSGX Butterfly Strategy

VSGX (Vanguard ESG International Stock ETF), in the Financial Services sector, (Asset Management - Global industry), listed on CBOE.

This exchange-traded fund (ETF) aims to replicate the investment performance of the FTSE Global All Cap ex US Choice Index. It builds its portfolio from a broad selection of international companies, spanning large, mid, and small market capitalizations, with individual holdings weighted by their market value. The fund employs a passively managed, index-sampling strategy, meticulously applying environmental, social, and corporate governance (ESG) screens to its holdings. It systematically excludes businesses involved in sectors such as adult entertainment, alcohol, tobacco, cannabis, and gambling. Additionally, it steers clear of companies linked to controversial weapons, including chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military systems, and civilian firearms. The fund also eschews companies significantly involved in nuclear power generation or those with substantial ties to fossil fuels, encompassing coal, oil, and natural gas.

VSGX (Vanguard ESG International Stock ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $6.67B, a beta of 0.97 versus the broader market, a 52-week range of 64.16-85.16, average daily share volume of 185K, a public-listing history dating back to 2018. These structural characteristics shape how VSGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

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

What is a butterfly on VSGX?

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 VSGX snapshot

As of June 29, 2026, spot at $82.25, ATM IV 19.40%, IV rank 7.17%, expected move 5.56%. The butterfly on VSGX 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 53-day expiry.

Why this butterfly structure on VSGX specifically: VSGX IV at 19.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a VSGX butterfly, with a market-implied 1-standard-deviation move of approximately 5.56% (roughly $4.57 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VSGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on VSGX should anchor to the underlying notional of $82.25 per share and to the trader's directional view on VSGX etf.

VSGX butterfly setup

The VSGX 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 VSGX near $82.25, the first option leg uses a $78.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VSGX chain at a 53-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 VSGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$78.00	$4.25
Sell 2	Call	$82.00	$1.85
Buy 1	Call	$86.00	$0.59

VSGX butterfly risk and reward

Net Premium / Debit: -$114.00
Max Profit (per contract): $270.17
Max Loss (per contract): -$114.00
Breakeven(s): $79.14, $84.86
Risk / Reward Ratio: 2.370

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.

VSGX butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on VSGX. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$114.00
$18.19	-77.9%	-$114.00
$36.38	-55.8%	-$114.00
$54.56	-33.7%	-$114.00
$72.75	-11.6%	-$114.00
$90.93	+10.6%	-$114.00
$109.12	+32.7%	-$114.00
$127.30	+54.8%	-$114.00
$145.49	+76.9%	-$114.00
$163.67	+99.0%	-$114.00

When traders use butterfly on VSGX

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

VSGX thesis for this butterfly

The market-implied 1-standard-deviation range for VSGX extends from approximately $77.68 on the downside to $86.82 on the upside. A VSGX long call butterfly is a pinning play: it pays maximum at the middle strike if VSGX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VSGX IV rank near 7.17% 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 VSGX at 19.40%. As a Financial Services name, VSGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VSGX-specific events.

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

Frequently asked questions

What is a butterfly on VSGX?: A butterfly on VSGX is the butterfly strategy applied to VSGX (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 VSGX etf trading near $82.25, the strikes shown on this page are snapped to the nearest listed VSGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VSGX 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 VSGX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 19.40%), the computed maximum profit is $270.17 per contract and the computed maximum loss is -$114.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VSGX butterfly?: The breakeven for the VSGX butterfly priced on this page is roughly $79.14 and $84.86 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 VSGX market-implied 1-standard-deviation expected move is approximately 5.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on VSGX?: Butterflies on VSGX are pinning bets - traders use them when they expect VSGX 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 VSGX implied volatility affect this butterfly?: VSGX ATM IV is at 19.40% with IV rank near 7.17%, 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.