AVT Butterfly Strategy
AVT (Avnet, Inc.), in the Technology sector, (Technology Distributors industry), listed on NASDAQ.
Avnet, Inc., a technology solutions company, markets, sells, and distributes electronic components. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical devices; and other integrated components from electronic component manufacturers. It also offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides integrated solutions, such as technical design, integration, and assembly of embedded products, and systems and solutions primarily for industrial applications, as well as for intelligent and innovative embedded display solutions comprising touch and passive displays. Further, it develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements.
AVT (Avnet, Inc.) trades in the Technology sector, specifically Technology Distributors, with a market capitalization of approximately $7.07B, a trailing P/E of 33.06, a beta of 1.11 versus the broader market, a 52-week range of 44.25-86.37, average daily share volume of 1.1M, a public-listing history dating back to 1973, approximately 15K full-time employees. These structural characteristics shape how AVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places AVT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on AVT?
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 AVT snapshot
As of May 15, 2026, spot at $84.23, ATM IV 39.70%, IV rank 8.13%, expected move 11.38%. The butterfly on AVT 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 98-day expiry.
Why this butterfly structure on AVT specifically: AVT IV at 39.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVT butterfly, with a market-implied 1-standard-deviation move of approximately 11.38% (roughly $9.59 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVT should anchor to the underlying notional of $84.23 per share and to the trader's directional view on AVT stock.
AVT butterfly setup
The AVT 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 AVT near $84.23, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVT chain at a 98-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 AVT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $9.65 |
| Sell 2 | Call | $85.00 | $6.85 |
| Buy 1 | Call | $90.00 | $4.50 |
AVT butterfly risk and reward
- Net Premium / Debit
- -$45.00
- Max Profit (per contract)
- $420.82
- Max Loss (per contract)
- -$45.00
- Breakeven(s)
- $80.45, $89.55
- Risk / Reward Ratio
- 9.352
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.
AVT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on AVT. 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% | -$45.00 |
| $18.63 | -77.9% | -$45.00 |
| $37.26 | -55.8% | -$45.00 |
| $55.88 | -33.7% | -$45.00 |
| $74.50 | -11.6% | -$45.00 |
| $93.12 | +10.6% | -$45.00 |
| $111.75 | +32.7% | -$45.00 |
| $130.37 | +54.8% | -$45.00 |
| $148.99 | +76.9% | -$45.00 |
| $167.61 | +99.0% | -$45.00 |
When traders use butterfly on AVT
Butterflies on AVT are pinning bets - traders use them when they expect AVT 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.
AVT thesis for this butterfly
The market-implied 1-standard-deviation range for AVT extends from approximately $74.64 on the downside to $93.82 on the upside. A AVT long call butterfly is a pinning play: it pays maximum at the middle strike if AVT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AVT IV rank near 8.13% 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 AVT at 39.70%. As a Technology name, AVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVT-specific events.
AVT 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. AVT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVT alongside the broader basket even when AVT-specific fundamentals are unchanged. Always rebuild the position from current AVT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AVT?
- A butterfly on AVT is the butterfly strategy applied to AVT (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 AVT stock trading near $84.23, the strikes shown on this page are snapped to the nearest listed AVT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVT 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 AVT butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 39.70%), the computed maximum profit is $420.82 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVT butterfly?
- The breakeven for the AVT butterfly priced on this page is roughly $80.45 and $89.55 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 AVT market-implied 1-standard-deviation expected move is approximately 11.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AVT?
- Butterflies on AVT are pinning bets - traders use them when they expect AVT 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 AVT implied volatility affect this butterfly?
- AVT ATM IV is at 39.70% with IV rank near 8.13%, 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.