How are RCLO 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 RCLO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $76.97 per contract and the computed maximum loss is -$17.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RCLO butterfly?

The breakeven for the RCLO butterfly priced on this page is roughly $24.17 and $25.84 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 RCLO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RCLO implied volatility affect this butterfly?

Current RCLO ATM IV is 32.60%; IV rank context is unavailable in the current snapshot.

RCLO Butterfly Strategy

RCLO (Reckoner BBB-B CLO ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Advisor Managed Portfolios - Reckoner BBB-B CLO ETF is an exchange traded fund launched and managed by Reckoner Capital Management LLC. It invests in fixed income markets. The fund invests in U.S. dollar denominated in debt tranches of collateralized loan obligations that are rated at the time of purchase BBB+ and B- or equivalent by a nationally recognized statistical rating organization. The fund invests in securities of varying maturities. It employs fundamental analysis with bottom-up security picking approach to create its portfolio. Advisor Managed Portfolios - Reckoner BBB-B CLO ETF was formed on October 22, 2025 and is domiciled in the United States.

RCLO (Reckoner BBB-B CLO ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $27.4M, a beta of 0.13 versus the broader market, a 52-week range of 24.14-25.36, average daily share volume of 4K, a public-listing history dating back to 2025, approximately 172 full-time employees. These structural characteristics shape how RCLO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.13 indicates RCLO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RCLO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RCLO?

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.

RCLO snapshot

As of August 14, 2026, spot at $24.93, ATM IV 32.60%, expected move 9.35%. The butterfly on RCLO 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 7-day expiry.

Why this butterfly structure on RCLO specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RCLO is inferred from ATM IV at 32.60% alone, with a market-implied 1-standard-deviation move of approximately 9.35% (roughly $2.33 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RCLO expiries trade a higher absolute premium for lower per-day decay. Position sizing on RCLO should anchor to the underlying notional of $24.93 per share and to the trader's directional view on RCLO etf.

RCLO butterfly setup

The RCLO 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 RCLO at $24.93 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RCLO chain at a 7-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 RCLO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$24.00	$1.44
Sell 2	Call	$25.00	$0.88
Buy 1	Call	$26.00	$0.49

RCLO butterfly risk and reward

Net Premium / Debit: -$17.00
Max Profit (per contract): $76.97
Max Loss (per contract): -$17.00
Breakeven(s): $24.17, $25.84
Risk / Reward Ratio: 4.528

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.

RCLO butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RCLO. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$17.00
$5.52	-77.9%	-$17.00
$11.03	-55.7%	-$17.00
$16.54	-33.6%	-$17.00
$22.05	-11.5%	-$17.00
$27.57	+10.6%	-$17.00
$33.08	+32.7%	-$17.00
$38.59	+54.8%	-$17.00
$44.10	+76.9%	-$17.00
$49.61	+99.0%	-$17.00

When traders use butterfly on RCLO

Butterflies on RCLO are pinning bets - traders use them when they expect RCLO 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.

RCLO thesis for this butterfly

The market-implied 1-standard-deviation range for RCLO extends from approximately $22.60 on the downside to $27.26 on the upside. A RCLO long call butterfly is a pinning play: it pays maximum at the middle strike if RCLO settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, RCLO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RCLO-specific events.

RCLO 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. RCLO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RCLO alongside the broader basket even when RCLO-specific fundamentals are unchanged. Always rebuild the position from current RCLO chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on RCLO?: A butterfly on RCLO is the butterfly strategy applied to RCLO (etf). 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 RCLO etf at $24.93 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RCLO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RCLO 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 RCLO butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $76.97 per contract and the computed maximum loss is -$17.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RCLO butterfly?: The breakeven for the RCLO butterfly priced on this page is roughly $24.17 and $25.84 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 RCLO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RCLO?: Butterflies on RCLO are pinning bets - traders use them when they expect RCLO 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 RCLO implied volatility affect this butterfly?: Current RCLO ATM IV is 32.60%; IV rank context is unavailable in the current snapshot.