VIVO Butterfly Strategy
VIVO (VivoPower PLC), in the Energy sector, (Solar industry), listed on NASDAQ.
VivoPower PLC, along with its various subsidiaries, operates as a global provider of sustainable energy solutions, primarily serving markets in the United Kingdom, Australia, Southeast Asia, and the United States. The company organizes its business activities into four distinct divisions: Critical Power Services, Electric Vehicles, Sustainable Energy Solutions, and Solar Development. The Critical Power Services division offers extensive energy infrastructure solutions, covering both power generation and distribution. This includes the conceptualization, sourcing, installation, and continuous upkeep of sophisticated power and control systems for a diverse clientele, ranging from governmental bodies to commercial enterprises and industrial operators. Its Electric Vehicles segment designs and manufactures resilient, lightweight electric vehicle solutions, tailored for demanding industries such as mining, infrastructure, utilities, and government service providers. The Sustainable Energy Solutions segment is dedicated to the design, assessment, commercialization, and deployment of renewable energy infrastructure.
VIVO (VivoPower PLC) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $70.9M, a trailing P/E of 4.37, a beta of -0.66 versus the broader market, a 52-week range of 1.2-6.86, average daily share volume of 1.4M, a public-listing history dating back to 2015, approximately 41 full-time employees. These structural characteristics shape how VIVO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.66 indicates VIVO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 4.37 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on VIVO?
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.
VIVO snapshot
As of August 14, 2026, spot at $4.92, ATM IV 151.20%, IV rank 29.59%, expected move 43.35%. The butterfly on VIVO 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 VIVO specifically: VIVO IV at 151.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a VIVO butterfly, with a market-implied 1-standard-deviation move of approximately 43.35% (roughly $2.13 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 VIVO expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIVO should anchor to the underlying notional of $4.92 per share and to the trader's directional view on VIVO stock.
VIVO butterfly setup
The VIVO 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 VIVO at $4.92 on that close, the first option leg uses a $4.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIVO 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 VIVO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.67 | N/A |
| Sell 2 | Call | $4.92 | N/A |
| Buy 1 | Call | $5.17 | N/A |
VIVO 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.
VIVO butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VIVO. 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 VIVO
Butterflies on VIVO are pinning bets - traders use them when they expect VIVO 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.
VIVO thesis for this butterfly
The market-implied 1-standard-deviation range for VIVO extends from approximately $2.79 on the downside to $7.05 on the upside. A VIVO long call butterfly is a pinning play: it pays maximum at the middle strike if VIVO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VIVO IV rank near 29.59% 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 VIVO at 151.20%. As a Energy name, VIVO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIVO-specific events.
VIVO 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. VIVO positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VIVO alongside the broader basket even when VIVO-specific fundamentals are unchanged. Always rebuild the position from current VIVO chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VIVO?
- A butterfly on VIVO is the butterfly strategy applied to VIVO (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 VIVO stock at $4.92 on the most recent close, the strikes shown on this page are snapped to the nearest listed VIVO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are VIVO 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 VIVO butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 151.20%), 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 VIVO butterfly?
- The breakeven for the VIVO 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 VIVO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 43.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VIVO?
- Butterflies on VIVO are pinning bets - traders use them when they expect VIVO 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 VIVO implied volatility affect this butterfly?
- VIVO ATM IV is at 151.20% with IV rank near 29.59%, 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.