AVAH Butterfly Strategy
AVAH (Aveanna Healthcare Holdings Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
Aveanna Healthcare Holdings Inc. operates as a diverse platform for home-based care services throughout the United States. The company delivers a range of critical offerings, including private duty nursing (PDN), adult home health and hospice care, in-home pediatric therapy, and enteral nutrition services. Its patient-centered approach allows individuals to receive essential medical care within their own homes, effectively reducing the need for costly institutional settings such as hospitals. The company's operations are structured into three key segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). The PDS segment provides specialized private duty nursing, which includes skilled nursing care for medically fragile children at home, nursing support in school environments, and services at pediatric day healthcare centers. This segment also offers employer-of-record support, personal care services, and pediatric therapy (physical, occupational, and speech) provided both in clinics and patients' residences.
AVAH (Aveanna Healthcare Holdings Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.97B, a trailing P/E of 7.43, a beta of 1.93 versus the broader market, a 52-week range of 5.93-10.32, average daily share volume of 1.8M, a public-listing history dating back to 2021, approximately 36K full-time employees. These structural characteristics shape how AVAH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.93 indicates AVAH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.43 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on AVAH?
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.
AVAH snapshot
As of August 14, 2026, spot at $12.38, ATM IV 51.60%, IV rank 8.76%, expected move 14.79%. The butterfly on AVAH below is built from the 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 AVAH specifically: AVAH IV at 51.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVAH butterfly, with a market-implied 1-standard-deviation move of approximately 14.79% (roughly $1.83 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 AVAH expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVAH should anchor to the underlying notional of $12.38 per share and to the trader's directional view on AVAH stock.
AVAH butterfly setup
The AVAH 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 AVAH at $12.38 on that close, the first option leg uses a $11.76 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVAH 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 AVAH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $11.76 | N/A |
| Sell 2 | Call | $12.38 | N/A |
| Buy 1 | Call | $13.00 | N/A |
AVAH butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
AVAH butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AVAH. 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.
When traders use butterfly on AVAH
Butterflies on AVAH are pinning bets - traders use them when they expect AVAH 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.
AVAH thesis for this butterfly
The market-implied 1-standard-deviation range for AVAH extends from approximately $10.55 on the downside to $14.21 on the upside. A AVAH long call butterfly is a pinning play: it pays maximum at the middle strike if AVAH settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVAH IV rank near 8.76% 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 AVAH at 51.60%. As a Healthcare name, AVAH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVAH-specific events.
AVAH 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. AVAH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVAH alongside the broader basket even when AVAH-specific fundamentals are unchanged. Always rebuild the position from current AVAH chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AVAH?
- A butterfly on AVAH is the butterfly strategy applied to AVAH (stock). 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 AVAH stock at $12.38 on the most recent close, the strikes shown on this page are snapped to the nearest listed AVAH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AVAH 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 AVAH butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 51.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVAH butterfly?
- The breakeven for the AVAH butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 AVAH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AVAH?
- Butterflies on AVAH are pinning bets - traders use them when they expect AVAH 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 AVAH implied volatility affect this butterfly?
- AVAH ATM IV is at 51.60% with IV rank near 8.76%, 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.