EVC Butterfly Strategy
EVC (Entravision Communications), in the Communication Services sector, (Broadcasting industry), listed on NYSE.
Entravision Communications Corporation, a media and advertising technology company, owns and operates television and radio stations in the United States and internationally. It operates in two segments, Media and Advertising Technology & Services (ATS). The company offers AudioEngage, a proprietary digital audio advertising network; and Entravision+, which aggregate video inventory from internet-connected televisions and streaming services, including Netflix, and events like the World Cup. It also manages advertising campaigns on platforms including Facebook, Instagram, and TikTok; sells inventory on news and station websites; manage paid search campaigns to reach customers who are actively looking for an advertiser’s specific products or services; and provides additional digital services, including email marketing and display and digital out-of-home advertising. In addition, the company offers Smadex, a demand side platform that provides advertising solutions to the developers of mobile games, fintech apps, and entertainment services. Further, it provides various solution comprising mobile user acquisition, a mobile user acquisition that takes place on a single mobile device; Connected TV that provides ads that drive viewers to pick up a different device to download an app; and retargeting product that focuses on re-engaging users who have previously installed an app but have since stopped using it.
EVC (Entravision Communications) trades in the Communication Services sector, specifically Broadcasting, with a market capitalization of approximately $830.2M, a trailing P/E of 168.77, a beta of 1.73 versus the broader market, a 52-week range of 1.95-13.74, average daily share volume of 2.3M, a public-listing history dating back to 2000, approximately 1K 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 1.73 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. The trailing P/E of 168.77 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. 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.
EVC snapshot
As of August 14, 2026, spot at $9.07, ATM IV 80.10%, IV rank 33.96%, expected move 22.96%. The butterfly on EVC 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 EVC specifically: EVC IV at 80.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 22.96% (roughly $2.08 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 EVC expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVC should anchor to the underlying notional of $9.07 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 at $9.07 on that close, the first option leg uses a $8.62 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 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 EVC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.62 | N/A |
| Sell 2 | Call | $9.07 | N/A |
| Buy 1 | Call | $9.52 | 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 $6.99 on the downside to $11.15 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 33.96% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on EVC should anchor more to the directional view and the expected-move geometry. 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 at $9.07 on the most recent close, the strikes shown on this page are snapped to the nearest listed EVC chain strike and the premiums come straight from that session's 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 80.10%), 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 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 EVC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.96%; 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 80.10% with IV rank near 33.96%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.