How are RGTU 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 RGTU butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 142.60%), the computed maximum profit is $55.00 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RGTU butterfly?

The breakeven for the RGTU butterfly priced on this page is roughly $10.45 at expiration, derived from the September 29, 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 RGTU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 40.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RGTU implied volatility affect this butterfly?

RGTU ATM IV is at 142.60% with IV rank near 34.90%, 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.

RGTU Butterfly Strategy

RGTU (Investment Managers Series Trust II - Tradr 2X Long RGTI Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

RGTU is a short-term tactical tool that aims to deliver twice (200%) the daily performance of Rigetti Computing Inc. (RGTI), before fees and expenses. The fund primarily enters into total return swap agreements with major global financial institutions that mirror RGTI's daily returns. In case swaps are unavailable or less efficient, the fund may use FLEX call options or directly hold RGTI stock. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the 2x multiple. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending, and holders are on the positive corresponding side of that trade.

RGTU (Investment Managers Series Trust II - Tradr 2X Long RGTI Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.0M, a beta of 11.41 versus the broader market, a 52-week range of 8.3-490.05, average daily share volume of 118K, a public-listing history dating back to 2025. These structural characteristics shape how RGTU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 11.41 indicates RGTU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. RGTU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on RGTU?

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.

RGTU snapshot

As of September 29, 2026, spot at $10.66, ATM IV 142.60%, IV rank 34.90%, expected move 40.88%. The butterfly on RGTU below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this butterfly structure on RGTU specifically: RGTU IV at 142.60% 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 40.88% (roughly $4.36 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RGTU expiries trade a higher absolute premium for lower per-day decay. Position sizing on RGTU should anchor to the underlying notional of $10.66 per share and to the trader's directional view on RGTU etf.

RGTU butterfly setup

The RGTU butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RGTU at $10.66 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RGTU chain at a 17-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 RGTU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$10.00	$1.63
Sell 2	Call	$11.00	$1.18
Buy 1	Call	$11.00	$1.18

RGTU butterfly risk and reward

Net Premium / Debit: -$45.00
Max Profit (per contract): $55.00
Max Loss (per contract): -$45.00
Breakeven(s): $10.45
Risk / Reward Ratio: 1.222

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.

RGTU butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on RGTU. 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	-99.9%	-$45.00
$2.37	-77.8%	-$45.00
$4.72	-55.7%	-$45.00
$7.08	-33.6%	-$45.00
$9.43	-11.5%	-$45.00
$11.79	+10.6%	+$55.00
$14.15	+32.7%	+$55.00
$16.50	+54.8%	+$55.00
$18.86	+76.9%	+$55.00
$21.21	+99.0%	+$55.00

When traders use butterfly on RGTU

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

RGTU thesis for this butterfly

The market-implied 1-standard-deviation range for RGTU extends from approximately $6.30 on the downside to $15.02 on the upside. A RGTU long call butterfly is a pinning play: it pays maximum at the middle strike if RGTU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current RGTU IV rank near 34.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on RGTU should anchor more to the directional view and the expected-move geometry. As a Financial Services name, RGTU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RGTU-specific events.

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

Frequently asked questions

What is a butterfly on RGTU?: A butterfly on RGTU is the butterfly strategy applied to RGTU (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 RGTU etf at $10.66 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed RGTU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RGTU 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 RGTU butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 142.60%), the computed maximum profit is $55.00 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RGTU butterfly?: The breakeven for the RGTU butterfly priced on this page is roughly $10.45 at expiration, derived from the September 29, 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 RGTU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 40.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on RGTU?: Butterflies on RGTU are pinning bets - traders use them when they expect RGTU 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 RGTU implied volatility affect this butterfly?: RGTU ATM IV is at 142.60% with IV rank near 34.90%, 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.