DAVE Butterfly Strategy

DAVE (Dave Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

Dave Inc. provides a suite of financial products and services through its financial service online platform. The company offers Insights, a personal financial management tool to manage income and expenses between paychecks for members; ExtraCash, a free overdraft and short-term credit alternative, which allows members to advance funds to their account and avoid a fee; and Side Hustle, a job application portal. It also provides Dave Banking, a digital checking and demand deposit account. The company was founded in 2015 and is based in West Hollywood, California.

DAVE (Dave Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.23B, a trailing P/E of 14.33, a beta of 3.94 versus the broader market, a 52-week range of 152.21-287.69, average daily share volume of 590K, a public-listing history dating back to 2021, approximately 274 full-time employees. These structural characteristics shape how DAVE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.94 indicates DAVE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a butterfly on DAVE?

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 DAVE snapshot

As of May 15, 2026, spot at $234.96, ATM IV 62.50%, IV rank 12.22%, expected move 17.92%. The butterfly on DAVE 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 28-day expiry.

Why this butterfly structure on DAVE specifically: DAVE IV at 62.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a DAVE butterfly, with a market-implied 1-standard-deviation move of approximately 17.92% (roughly $42.10 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DAVE expiries trade a higher absolute premium for lower per-day decay. Position sizing on DAVE should anchor to the underlying notional of $234.96 per share and to the trader's directional view on DAVE stock.

DAVE butterfly setup

The DAVE 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 DAVE near $234.96, the first option leg uses a $225.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DAVE chain at a 28-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 DAVE shares for the stock leg in covered calls and collars).

DAVE butterfly risk and reward

Net Premium / Debit

-$230.00

Max Profit (per contract)

$655.43

Max Loss (per contract)

-$230.00

Breakeven(s)

$227.30, $242.70

Risk / Reward Ratio

2.850

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.

DAVE butterfly payoff curve

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

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

DAVE thesis for this butterfly

The market-implied 1-standard-deviation range for DAVE extends from approximately $192.86 on the downside to $277.06 on the upside. A DAVE long call butterfly is a pinning play: it pays maximum at the middle strike if DAVE settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current DAVE IV rank near 12.22% 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 DAVE at 62.50%. As a Technology name, DAVE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DAVE-specific events.

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

Frequently asked questions

What is a butterfly on DAVE?

A butterfly on DAVE is the butterfly strategy applied to DAVE (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 DAVE stock trading near $234.96, the strikes shown on this page are snapped to the nearest listed DAVE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.

How are DAVE 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 DAVE butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 62.50%), the computed maximum profit is $655.43 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DAVE butterfly?

The breakeven for the DAVE butterfly priced on this page is roughly $227.30 and $242.70 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 DAVE market-implied 1-standard-deviation expected move is approximately 17.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

When should you consider a butterfly on DAVE?

Butterflies on DAVE are pinning bets - traders use them when they expect DAVE 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 DAVE implied volatility affect this butterfly?

DAVE ATM IV is at 62.50% with IV rank near 12.22%, 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.

Related DAVE analysis

• Butterfly strategy reference
• DAVE options overview
• DAVE P&L curve (full chain)
• DAVE options chain
• DAVE volatility skew