EVC Butterfly Strategy
EVC (Entravision Communications Corporation), in the Communication Services sector, (Broadcasting industry), listed on NYSE.
Entravision Communications Corporation operates as an advertising, media, and technology solutions company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics across acculturation levels and media channels. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services, as well as advertising customers billing and technological and other support services, including strategic marketing and training; and Smadex, a programmatic ad purchasing platform that enables advertising customers or ad agencies to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a branding and mobile performance solutions, such as managed services to advertisers looking to connect with consumers on mobile devices; and digital audio advertising solutions for advertisers.
EVC (Entravision Communications Corporation) trades in the Communication Services sector, specifically Broadcasting, with a market capitalization of approximately $821.0M, a beta of 1.38 versus the broader market, a 52-week range of 1.81-9.34, average daily share volume of 1.4M, a public-listing history dating back to 2000, approximately 990 full-time employees. These structural characteristics shape how EVC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates EVC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EVC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on EVC?
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 EVC snapshot
As of May 15, 2026, spot at $7.94, ATM IV 104.60%, IV rank 27.96%, expected move 29.99%. The butterfly on EVC 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 34-day expiry.
Why this butterfly structure on EVC specifically: EVC IV at 104.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a EVC butterfly, with a market-implied 1-standard-deviation move of approximately 29.99% (roughly $2.38 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EVC expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVC should anchor to the underlying notional of $7.94 per share and to the trader's directional view on EVC stock.
EVC butterfly setup
The EVC 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 EVC near $7.94, the first option leg uses a $7.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVC chain at a 34-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 EVC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.54 | N/A |
| Sell 2 | Call | $7.94 | N/A |
| Buy 1 | Call | $8.34 | N/A |
EVC 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.
EVC butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EVC. 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 EVC
Butterflies on EVC are pinning bets - traders use them when they expect EVC 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.
EVC thesis for this butterfly
The market-implied 1-standard-deviation range for EVC extends from approximately $5.56 on the downside to $10.32 on the upside. A EVC long call butterfly is a pinning play: it pays maximum at the middle strike if EVC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EVC IV rank near 27.96% 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 EVC at 104.60%. As a Communication Services name, EVC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVC-specific events.
EVC 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. EVC positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EVC alongside the broader basket even when EVC-specific fundamentals are unchanged. Always rebuild the position from current EVC chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EVC?
- A butterfly on EVC is the butterfly strategy applied to EVC (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 EVC stock trading near $7.94, the strikes shown on this page are snapped to the nearest listed EVC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EVC 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 EVC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 104.60%), 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 EVC butterfly?
- The breakeven for the EVC butterfly priced on this page is no defined breakeven on the modeled curve 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 EVC market-implied 1-standard-deviation expected move is approximately 29.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EVC?
- Butterflies on EVC are pinning bets - traders use them when they expect EVC 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 EVC implied volatility affect this butterfly?
- EVC ATM IV is at 104.60% with IV rank near 27.96%, 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.