EVEX Butterfly Strategy
EVEX (Eve Holding, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Eve Holding, Inc. develops urban air mobility solutions. It is involved in the design and production of eVTOLs; provision of eVTOL service and support capabilities, including material services, maintenance, technical support, training, ground handling, and data services; and development of urban air traffic management systems. The company is based in Melbourne, Florida.
EVEX (Eve Holding, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $977.9M, a beta of 1.04 versus the broader market, a 52-week range of 2.34-7.699, average daily share volume of 1.3M, a public-listing history dating back to 2022, approximately 174 full-time employees. These structural characteristics shape how EVEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.04 places EVEX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on EVEX?
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 EVEX snapshot
As of May 15, 2026, spot at $3.01, ATM IV 104.70%, IV rank 27.67%, expected move 30.02%. The butterfly on EVEX 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 EVEX specifically: EVEX IV at 104.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a EVEX butterfly, with a market-implied 1-standard-deviation move of approximately 30.02% (roughly $0.90 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 EVEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVEX should anchor to the underlying notional of $3.01 per share and to the trader's directional view on EVEX stock.
EVEX butterfly setup
The EVEX 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 EVEX near $3.01, the first option leg uses a $2.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVEX 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 EVEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.86 | N/A |
| Sell 2 | Call | $3.01 | N/A |
| Buy 1 | Call | $3.16 | N/A |
EVEX 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.
EVEX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on EVEX. 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 EVEX
Butterflies on EVEX are pinning bets - traders use them when they expect EVEX 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.
EVEX thesis for this butterfly
The market-implied 1-standard-deviation range for EVEX extends from approximately $2.11 on the downside to $3.91 on the upside. A EVEX long call butterfly is a pinning play: it pays maximum at the middle strike if EVEX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current EVEX IV rank near 27.67% 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 EVEX at 104.70%. As a Industrials name, EVEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVEX-specific events.
EVEX 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. EVEX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EVEX alongside the broader basket even when EVEX-specific fundamentals are unchanged. Always rebuild the position from current EVEX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on EVEX?
- A butterfly on EVEX is the butterfly strategy applied to EVEX (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 EVEX stock trading near $3.01, the strikes shown on this page are snapped to the nearest listed EVEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EVEX 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 EVEX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 104.70%), 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 EVEX butterfly?
- The breakeven for the EVEX 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 EVEX market-implied 1-standard-deviation expected move is approximately 30.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on EVEX?
- Butterflies on EVEX are pinning bets - traders use them when they expect EVEX 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 EVEX implied volatility affect this butterfly?
- EVEX ATM IV is at 104.70% with IV rank near 27.67%, 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.