VVX Butterfly Strategy
VVX (V2X, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Colorado Springs, Colorado, serves as the home base for V2X, Inc.
VVX (V2X, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $2.55B, a trailing P/E of 27.79, a beta of 0.22 versus the broader market, a 52-week range of 50.889-93.98, average daily share volume of 633K, a public-listing history dating back to 2014, approximately 16K full-time employees. These structural characteristics shape how VVX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.22 indicates VVX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on VVX?
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.
VVX snapshot
As of August 14, 2026, spot at $82.78, ATM IV 42.40%, IV rank 4.66%, expected move 12.16%. The butterfly on VVX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 98-day expiry.
Why this butterfly structure on VVX specifically: VVX IV at 42.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a VVX butterfly, with a market-implied 1-standard-deviation move of approximately 12.16% (roughly $10.06 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VVX expiries trade a higher absolute premium for lower per-day decay. Position sizing on VVX should anchor to the underlying notional of $82.78 per share and to the trader's directional view on VVX stock.
VVX butterfly setup
The VVX butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With VVX at $82.78 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VVX chain at a 98-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 VVX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $10.05 |
| Sell 2 | Call | $85.00 | $8.05 |
| Buy 1 | Call | $85.00 | $8.05 |
VVX butterfly risk and reward
- Net Premium / Debit
- -$200.00
- Max Profit (per contract)
- $300.00
- Max Loss (per contract)
- -$200.00
- Breakeven(s)
- $82.00
- Risk / Reward Ratio
- 1.500
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.
VVX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on VVX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$200.00 |
| $18.31 | -77.9% | -$200.00 |
| $36.61 | -55.8% | -$200.00 |
| $54.92 | -33.7% | -$200.00 |
| $73.22 | -11.6% | -$200.00 |
| $91.52 | +10.6% | +$300.00 |
| $109.82 | +32.7% | +$300.00 |
| $128.12 | +54.8% | +$300.00 |
| $146.43 | +76.9% | +$300.00 |
| $164.73 | +99.0% | +$300.00 |
When traders use butterfly on VVX
Butterflies on VVX are pinning bets - traders use them when they expect VVX 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.
VVX thesis for this butterfly
The market-implied 1-standard-deviation range for VVX extends from approximately $72.72 on the downside to $92.84 on the upside. A VVX long call butterfly is a pinning play: it pays maximum at the middle strike if VVX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current VVX IV rank near 4.66% 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 VVX at 42.40%. As a Industrials name, VVX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VVX-specific events.
VVX 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. VVX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VVX alongside the broader basket even when VVX-specific fundamentals are unchanged. Always rebuild the position from current VVX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on VVX?
- A butterfly on VVX is the butterfly strategy applied to VVX (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 VVX stock at $82.78 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed VVX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are VVX 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 VVX butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.40%), the computed maximum profit is $300.00 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VVX butterfly?
- The breakeven for the VVX butterfly priced on this page is roughly $82.00 at expiration, derived from the August 14, 2026 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 VVX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on VVX?
- Butterflies on VVX are pinning bets - traders use them when they expect VVX 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 VVX implied volatility affect this butterfly?
- VVX ATM IV is at 42.40% with IV rank near 4.66%, 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.